Brief: Netflix foreign subscriptions have overtaken US for the first time

Photo credit: Tech in Asia.

The news:

• Netflix has just reported its best-ever quarter in terms of subscriptions, signing up 5.2 million new viewers in the three months ending June. This is significantly higher than the 3.2 million that market analysts had predicted.
• The US company said that 4.14 million of these new subscribers are outside its home market, meaning that its foreign subscriptions have overtaken US ones for the first time.
• As a result of this, Netflix expects 2017 to be the first year in which its non-US business turns a profit.

Why it matters:

• Despite the positive news on international growth, Asia remains a significant challenge for Netflix – something that company executives reiterated during their Q2 conference call, promising to “invest more time and energy” in the region. The service has been perceived as lacking in local content and too expensive for many Asian consumers, who prefer watching on mobile devices.
• In Asia, Netflix competes with a number of regionally focused content-streaming players, such as Hooq, Iflix, and Viddsee, among others. These have adopted more localized strategies ranging from partnering with filmmakers from the region on original content to streaming live sports.

Source: Bloomberg.