Netflix Turns To Asia To Boost Its Stalled Subscriber Growth

Netflix Turns To Asia To Boost Its Stalled Subscriber Growth

Netflix will invest more in Asia in a bid to revive its sluggish subscriber growth, betting on the lone region where the company added customers during an otherwise disappointing first quarter.

Bloomberg reported Monday that the streaming giant will grow its investment in Asia despite plans to reign in spending overall across the company. That will include financing the production of local films and series for that market, Tony Zameczkowski, Netflix’s vice president of business development for Asia Pacific, told the news outlet.

The streaming service has lost roughly 70% of its market value this year, due in large part to the company losing customers for the first time in a decade last quarter. Things aren’t expected to improve in the current second quarter, either with Netflix predicting a net loss of 2 million subscribers.

But Asia is the one market where Netflix has made gains this year, adding 1.1 million subscribers during the first quarter. The company will likely try to reproduce the success it found with South Korean hits like “Squid Game”—Netflix’s most-watched show ever—and “Hellbound,” as well as ramp up its Japanese anime portfolio.

Still, the Asia region presents political and profit challenges, such as countries seeking to restrict certain content within its borders and lower revenue per customer compared to North American subscribers, Bloomberg noted.

Facing heightened competition from tech and legacy media giants, Netflix is trying all sorts of things to remain atop the streaming market. It’s planning to crack down on password sharing, introduce advertising and expand into gaming to add or hang onto paying customers.

Subscribe to our newsletter to catch every headline.

The Lithium Race Takes Shape in the Salton Sea

Located roughly a hundred miles east of San Diego, the Salton Sea is California’s largest landlocked body of water, for now.

Measuring 5 miles across and 35 miles long in its current form, the lake was created by diverting water from the Colorado River into the region for agricultural purposes. Once a vacation destination renowned for its wildlife and wetlands, a series of environmental mishaps and mismanagement have left the lake toxically salty, shrinking and often malodorous. Conditions have gotten so bad that Palm Springs Life Magazine called the region’s transformation “the biggest environmental disaster in California history” in March of 2020.

Read moreShow less
David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.