Netflix looks at Asia to start fixing its ongoing subscription crisis

Date: June 29, 2022

Netflix is reportedly turning to Asia to rollout its plan to fix the ongoing subscription crisis after witnessing a shocking slowdown across the rest of the world in the first quarter this year. The streaming giant is striving to sustain its growth in a region where it is still adding subscribers to the platform and replicate that success in other parts of the world.

Tony Zameczkowski, VP of business development in Asia Pacific, Netflix, stated that despite the company’s plans to halt overall expenditure, investment in the APAC region would continue to grow. This also includes financing for production of local series and movies.

Zameczkowski added that Netflix will continue to offer low-price membership packages throughout Asia while also looking for partnerships with digital payment companies and wireless operators to expand its reach to more customers.

The Firm’s strategy for Asia will be announcing moves in other developing markets, where the company must grow to counteract the saturation in Europe and North America.

Zameczkowski considers Asia a great substitute for other global markets, adding that it has similarities with other emerging markets like Africa and Latin America, and that learnings in Asia can be easily leveraged or replicated by those regions.

Having seen a boom in subscriber count earlier, the global giant reported its first drop in customers in over a decade in April 2022, with predictions of further contractions in the current quarter, following immense competition from rival streaming services.

Currently, the Asia-Pacific region makes up 15% of the firm’s total 221.6 million subscribers and is expected to be the most significant driver for further expansion.

However, the region’s broadly varying audiences, operating environments and preferences pose perils to streaming services. Netflix has also faced political and cultural challenges while trying to penetrate some markets, with its content often triggering controversy.

Not only that, but Netflix’s Asian customers are also some of the lowest-value ones, implying that there is a need to add more subscriptions in order to increase profits. Moreover, it faces competition from global and local streaming firms that have paved their way into Asian markets.

Netflix might also introduce advertising in Asia to increase revenue, with Zameczkowski believing that it might make the platform more accessible.

Source credit: https://gadgets360.com/entertainment/features/netflix-subscription-growth-crisis-asia-plans-3107374#rss-gadgets-all

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.

Netflix looks at Asia to start fixing its ongoing subscription crisis