Netflix’s Asia-Pacific content spend could hit US$1.9 billion in 2023, and revenues in the region are expected to grow 12% year-on-year to US$4 billion, Media Partners Asia (MPA) said in its latest report, entitled “Netflix in the Asia Pacific.”
Japan and Korea, where ARPU growth is described as “robust,” are expected to lead growth in 2023. “Japan is critical to Netflix’s prospects in the region, with the market contributing over a quarter to the company’s total APAC revenues in 2023,” assured Vivek Couto, Executive Director of MPA.
MPA also identifies increased contributions from India, Indonesia, Thailand, and the Philippines. “India, Indonesia, Thailand and the Philippines will contribute through a mix of subscriber and ARPU growth with impact in the Southeast Asia markets likely to be felt especially in the second half as these four markets contribute more than 20% in aggregate to 2023 revenues,” Couto added.
Along with highlighting increased spend on original content and acquisitions in Asia, the report pointed out the higher travelability of Asian content in 2023, notably titles such as India’s “Mismatched”; Thailand’s “The Whole Truth”; Taiwan’s “Mom, Don’t Do That!”; and Indonesia’s “The Big 4.”
Netflix’s US$1.9 billion local content investment in 2023 (representing 47% of revenues) will be driven by Korea and Japan, followed by India, Australia and parts of Southeast Asia. MPA’s Lead Analyst & Head of Content Insights, Dhivya T, says Netflix’s APAC content investments “have global impact”.
“Leading Japanese series and anime, together with Korean dramas and movies, as well as movies from Indonesia and India, have ranked among the globally top streamed titles over the past 12 months through January 2023,” Dhivya T commented.