MPA: Netflix Set for Strong AsiaPac Growth


Netflix is expected to add 2.1 million subscribers across AsiaPac in Q4, driven by the streaming giant’s new partnership with Jio in India as well as gains in Japan and South Korea, according to new analysis from Media Partners Asia (MPA).

The platform added 3.6 million subs in the region in Q1 and then 2.7 million in Q2, with growth slowing to 1 million in Q3 as COVID-19 stay-at-home measures eased. A rebound is expected in Q4 driven by India, which will account for 47 percent of net additions in the period, and Japan and South Korea, which will account for 28 percent of net new additions. Southeast Asia will account for 16 percent and Australia and New Zealand 8 percent. By the end of 2020, Netflix will generate revenues of about $2.4 billion in AsiaPac, around 10 percent of its global total.

Japan and South Korea have been key to the company’s growth in the region in Q3, accounting for about 57 percent of its net additions in the period. For the full year, these two markets will represent 37 percent of total net additions. Local series and movies, anime and a deep library have helped drive traction in Japan, together with telco and connected device partnerships. Likewise in Korea, local acquisitions, originals and telco partnerships have driven gains.

In India, Netflix is benefiting from the recent pact with Jio to offer a mobile-only subscription to post-paid subscribers at plans starting US$5.30 a month. Netflix is also bundled with Jio’s fixed broadband service with free access to subs opting for data plans starting US$20 a month. By year-end, MPA expects Netflix will have 4.6 million paying subs in India.

In Southeast Asia, about 56 percent of the year’s net additions from this region will come from the Philippines and Thailand.