New Delhi: US streaming platform Netflix’s revenue will grow 12% to over $4 billion this year, compared to a 9% increase in 2022, while local content investment will reach $1.9 billion, representing 47% of revenue. is, according to a report by Media Partners Asia (MPA), an independent provider of research, advisory and consulting services in the media and telecommunications sectors in Asia Pacific.
Netflix’s revenue growth in 2023 will benefit from a rebound in the Australia market, where its performance will be driven by slower advertising growth, higher-ARPU revenue growth in Japan and Korea, and material gains and contributions from India, Indonesia, the Philippines and Thailand . ,
“Advertisement levels have seen a slow start across the three APAC markets. Australia is expected to see more momentum through 2023, where churn is increasing in the market, helping to boost customers and revenue. Japan will continue to grow as Netflix seeks to make an impact with new scripted non-anime shows. “With the market contributing more than a quarter of the company’s total APAC revenue in 2023, Japan is critical to Netflix’s prospects in the region,” Vivek Couto, MPA’s executive director, said in a statement.
India, Indonesia, Thailand and the Philippines will contribute through a mix of subscriber and ARPU growth, with impact in Southeast Asian markets expected to be especially felt in the second half as these four markets will account for a total of 20% of 2023 revenue contribute more than that, Couto added.
Netflix’s local content investment will reach $1.9 billion in 2023, representing 47% of revenue, driven by Korea, Japan, followed by India, Australia and parts of Southeast Asia. “Netflix’s APAC content investments have a global impact,” Divya Tee, Principal Analyst and Head of Content Insights at MPA, said in a statement. Top streamed titles globally over the last 12 months through January 2023,” said Divya.
Last year, Netflix released 29 exclusive Korean dramas, six of which were among titles expected to reach the top 10 in APAC in 2022, according to MPA subsidiary AMPD Research. Unscripted titles such as Singles Inferno (Season Two) and Physical 100 are trending in early 2023. Netflix’s English global hit originals, led by Stranger Things and Wednesdays, have also performed well in APAC. Indian (Mismatched Season Two), Taiwanese (Mom, Don’t Do That!) and Indonesian (The Big 4) originals had travel-ability in 2022 with regional impact. Among Netflix’s top eight revenue-based markets in APAC, India and Indonesia continue to have the highest growth. Netflix’s monetization in India last year and through 2023 is a result of strong low-ARPU subscriber growth, with viewership driven by nine local originals in the fourth quarter of 2022.
In addition, MPA research indicates that password sharing is at the highest levels in Indonesia, Korea, the Philippines, Thailand, and India. In February 2023, the company also announced a price adjustment in Southeast Asia. The move could further boost customer acquisition and upsell in these markets, as well as set the stage for password sharing action in the second half of 2023.
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