2022 is a very bad year for Netflix. The biggest streaming service provider is witnessing a massive decline in user base. With paying subscribers leaving, the revenue tanks. Along with that, the share prices are at an all-time low.
Despite that, Netflix is hoping to build a big customer base in Asia in hopes of amassing paying subscribers. Last month, news broke out about Netflix losing 200,000 subscribers. The company reported that it has already reached the maximum subscriber base in North America and Europe.
Now, the company hopes to boost revenue by introducing an ad-supported plan which will charge money from advertisers. In addition, it is planning to broaden payment options in Asia because a majority of the target audience doesn’t use credit cards.
Why does Netflix want to expand in Asia?
The Indian Express reports that the company is looking to expand in Asia. “Asia is a great proxy for other markets in the world,” said Zameczkowski. “There are similarities between emerging Asia and other emerging markets like Africa and Latin America. Learnings here can be easily replicated or leveraged by those regions.”
Netflix hasn’t showcased a steady growth in the emerging markets and it wants to fix that. Netflix is cutting jobs but has still allocated a massive budget for new shows and movies in 2022. The company expects to add 6.8 million paying subscribers in the second half of 2022, 79% of which will be from the Asia Pacific.
Content reception has been the biggest hurdle in these regions. Netflix had to cancel and apologize for many shows it ran in India and the same is the case with many other Asian countries. It is a greater challenge for Netflix to penetrate the target audience in these regions while building content that is watchable.
In addition, other streaming services have also grabbed many eyeballs due to their decent regional content. Netflix has realized that the sole way to appeal to a wider audience is by creating regional content. But even that needs to be done with caution. Disney+ Hotstar and other platforms have snatched a large part of paying subscribers with their regional content. Despite all that, Netflix is hoping for steady growth to overcome the revenue slump.