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Editor’s note: This article is from WeChat public account “Western entertainment” (ID: EW-Entertainment ), the author of things entertainment.
In 2016, Netflix began to expand its global market, and it was concentrated in Asia.
We have previously done a strategic analysis of some of Netflix’s major Asian countries, and this time we have once again done an integration. The point of this integration is the first decline in Netflix’s US domestic market.
The recently announced Netflix second-quarter results show that the company’s revenue growth of 26% to 4.9 billion US dollars, but user growth is lower than expected, the global increase of 2.7 million subscribers, far lower than the platform’s previous forecast of 5 million, The number of Netflix US users has fallen for the first time in eight years, and global user growth is also lower than expected.
Netflix currently has 151 million paying users worldwide, including about 60 million users in the United States and nearly 100 million overseas users. As early as Q2 2017, Netflix’s subscriber base in overseas regions (52 million) has surpassed the United States ( 51.9 million).
It is undeniable that the value of the unit users in Asia is low, the acceptance of overseas paid services has not been opened, the members pay for new (user reach), and the increment (member renewal and membership level upgrade) is still The platform further explores the important tasks of the Asian market potential.
But with the establishment of payment habits in Asia, disposable income growth, young audience gathering, improved network infrastructure, and popularizing mobile/PC-side viewing behavior, streaming media services are promising, and it is certain that Asian markets will be in the late stage. It has an important impact on Netflix’s growth potential. From the two years of Nethlix’s high-level public statements, the Asian market is becoming a prominent vocabulary in overseas markets, rather than a vague “overseas image.”
All along, Netflix’s overseas market strategy has always been to try to get the ability to self-hematopoietic in the local market, temporarily put the cost recovery aside, even to obtain quality creative resources at their own risk, and do their best to deepen market penetration: Or through traditional market-invested mergers with higher levels of market acceptance, or bundled with local mobile operators.
Overall, observing the current progress of Netflix’s Asian market, on the one hand, it can judge Netflix’s trend. On the other hand, how does Netflix take root in overseas markets and form a “American original go out – overseas local original introduction” The development path may have certain participation in the introduction and export of the domestic market.Test value.
The following is part of the body content, complete content and reports, we will pass to some of our readers in a non-public manner.
01.Southeast Asia Market
In 2015, Netflix entered the Southeast Asian market, and Netflix believes that the Asian market may attract hundreds of millions of potential subscribers. Currently, after three years of deployment, Netflix has set up a local headquarters in Singapore and plans to recruit local staff in Seoul, Tokyo and Mumbai, adding a unique local Asian content.
Netflix Chief Content Officer Ted Sarandos said at the Asian Content Release Conference in Singapore at the end of last year that the company is increasing its investment and support for Asian screenwriters, and more than 100 film and television projects are being updated in Asia. Renew and announce 17 new original works that will continue to be developed in Japan, Taiwan, Thailand, India and Korea.
After the investigation by Media Partner Asia, the analysis said, “In Southeast Asia, Netflix actively cooperates with local mobile operators to accelerate the popularization of content services and users’ new development. Under this strategy, markets with outstanding results include Singapore. , Malaysia, the Philippines and Thailand.”
Media Partner Asia pointed out that more price flexibility and continued local content channels, as well as continued promotion of original and Korean/Asian content, may help further penetration in markets such as Malaysia, the Philippines and Thailand. However, content piracy and mass market acceptance have not yet opened, and it is still the challenge Netflix faces in Southeast Asia, but the rapid iteration of infrastructure and the growing demand for quality content in local and Asian countries are key catalysts.
Netflix CCO Sarandos said that Netflix is still in its early stages in Asia. The company has very specific initiatives in every country in the region. “Asia is home to the world’s great creative centres, which are exporting today’s most compelling movies and TV shows.”
Sarandos also stressed that Asian content tends to perform well elsewhere, so investing in Asia is a win-win situation. “This year, more than half of the viewing time of Asian content on Netflix occurred outside of Asia, so we have Confidence, the upcoming Asian film will reach a wide audience both locally and overseas.”
According to the latest news, the Southeast Asian drama series will be on the Netflix platform, including the Thai drama “Desperate Island” and the supernatural thriller “Ghost Crazy”. Previously, Netflix launched a number of popular movies in Southeast Asia on the platform, including the Philippine thriller “Weird Case” and the Malaysian crime drama “Night Flight.”
All along, Netflix’s more controversial point in the Southeast Asian market is pricing. At present, Netflix has no plans to adjust pricing for the Southeast Asian market, although industry observers believe that reducing monthly fees is necessary for Southeast Asian users to grow, especially considering that the per capita income is 1/4 (or even less) in the US.
02.Japan Market
Since its launch in Japan in September 2015, Netflix has been actively entering the Japanese streaming media market, launching content based on local culture, such as the animation “Workplace Xiaolie”, reality show “Two-storey apartment: Open heart Original programs such as “Love Bus” attracted many Japanese audiences and began to choose subscription services.
Previous analysis
from Japan Look at Netflix’s international layout: content, local and local
We have previously analyzed the layout of Netflix’s Japanese market. In the early days, Netflix mainly cooperated with telecom, media and Internet giants such as Softbank to launch bundled packages to achieve market penetration and to invest in a traditional national level. TV station cooperation.
In the trend of the development of the production committee mode, Netflix is still changing the mode of content cooperation between the Japanese animation industry and the film and television industry: unlike the production committee model, Netflix is willing to take on more risks and win the excellent local Content production partners help turn animation projects into profit.
With Hulu and Disney’s upcoming streaming services, the content market is intensifying, Netflix has doubled its funds in Japan, and animation content has become an important part of acquiring a large number of Japanese markets and fans of overseas Japanese culture. Content forms, new and old animated content began to increase on Netflix, including “Ottoman”, “Evangelion” and so on.
Netflix animation director Taito Okiura said the company plans to add 30 new animation series this year, and more than ten animation series will be officially launched in 2019. For Netflix, the reason for the rapid launch of the new content is to quickly offset the impact of Disney’s withdrawal of content from Netflix, and develop a differentiated animation strategy that is different from Disney’s family and American style.
Before, in addition to copyright trading of many anime content, Netflix has launched some original Japanese cartoons and live-action dramas such as “Devil City”, “Fullmetal Alchemist”, “Borders and Worlds” ( Death Reality Edition).
Last year, Netflix has established a collaborative relationship with Japan’s Production IG and BONES studios. In March of this year, Netflix announced new partnerships with three Japanese studios, including Anima Studios, Sublimation and David. Production, the three companies will produce five new animation series for Netflix.
Anima Studio will produce an animated version of the Netflix live sci-fi TV series “Copy”, which is set in the same background as the drama; Sublimation specializes in illuminating animation and hand-drawing, focusing on original content creation, and will focus on original content creation, and will The game “The Dragon’s Creed” was adapted in an animated version; David Production was responsible for making an animated version of “The Guardian of the Relics” for Netflix.
As Netflix covers more than 190 countries, working with Netflix has also become a good window for Japanese studios to explore content.
But before, the market for Netflix for Japanese animeThe processing power has raised doubts and there are concerns. The excellent cartoons will be buried by Netflix’s hodgepod content library.
Overall, although some of the original TV series have won fans overseas, the Netflix Japan version has been launched since 2015, and it has indeed gained a more solid mass base. However, on the whole, its services have not completely penetrated the market, and there is a “gap” compared to traditional Japanese media content.
Compared with other markets, the Japanese streaming media subscription model is still relatively limited in popularity, which means that today Netflix wants to penetrate the Japanese market and needs to return to the early development proposition – let the audience Cable TV viewing is attractive to watch online.
In addition, competition is increasing.
movie streaming giant Crunchyroll currently AT & amp made; subscriber T all, with 45 million users and paid 200; March of this year, Crunchyroll announced the expansion of cooperation with young adults to animation production company Adult Swim, and on the issue on television Crunchyroll’s more content.
In addition Hulu also has a good animation library, and it even won the “Superman punch” exclusive streaming rights in the second quarter, Disney currently has a 60% stake in Hulu, may also take the opportunity to set foot in Japan Animation In addition, streaming media players including Amazon and Apple Studios Crunchyroll are showing up to Japanese studios.
In April, Netflix made a price increase for the Japanese market, and the monthly fee increased from 950 yen (about 8.50 US dollars) to 1200 yen (about 10.75 US dollars).
03.Korea Market
Netflix has entered the Korean market since 2016 and has become a growing force in the Korean domestic market in a relatively short period of time.
Previous analysis