Netflix sees biggest gains in revenue, subscribers in Asia Pacific

American streaming giant Netflix saw the biggest gains in both membership and revenue in Asia Pacific for the past three years, its filing with the US Securities and Exchange Commission on Monday showed.

This is the first time the US company revealed its regional subscriber numbers.

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Netflix saw a 153% growth in revenue in the region – the smallest market for the company – to US$382 million from end of Q3 2017 to end of Q3 2019. Memberships also grew 148% over the same period to 14.5 million.

Meanwhile, its business in the US and Canada only saw a 57% increase in revenue in the period, although it remains the biggest market at US$2.6 billion. Subscriptions went up 18% to 67.1 million.

Netflix is facing tighter competition in the video-streaming market in the US, with new players such as Disney+ and Apple TV+, as well as upcoming services HBO Max and Peacock.

To grow its international business, Netflix is buying and creating local-language content to attract local audiences.

The company stepped into India, for example, by acquiring and developing India-specific content. In 2018, it launched its first original series in Hindi, Sacred Games, which helped it gain 1.2 million subscribers, according to a report.

In China, Netflix’s strategy involves acquiring rights to Mandarin-language shows as well as producing its own original content. However, it couldn’t launch in the country due to regulatory hurdles.

Video-streaming services are getting more attention in the region. According to a report, the Asia-Pacific online video industry will generate US$27 billion in advertising and subscription revenue this year, up 24% from 2018.

Aside from Asia Pacific, Netflix also saw strong growth in Europe, the Middle East, and Africa with a 105% increase in revenue to US$1.4 billion. Latin America, meanwhile, witnessed 71% growth to US$741 million.