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.