According to a recent forecast by an Asia-based research company, the US-based OTT (over-the-top) video streaming service is anticipated to boost its Asia-Pacific revenue to $4 billion. The study by Media Partners Asia suggest that Netflix is apparently planning to increase its spending in the area by 15% to $1.9 billion. Additionally, this investment is projected to amp up its revenue for the region by 12%.
The report by the firm claims that Netflix will witness the fastest regions growth in India and Indonesia int eh year 2023. With a meagre 3% market share in India, the streaming service is competing against indigenous platforms like AltBalaji and Eros Now.
With a 46% market share in the nation, Austria is the largest market for Netflix, according to Statistica. Following it are Nigeria (33%), South Korea (36%), Germany (35%), and France (37%). With a 3% market share, the Indian market is currently far behind.
Why Is The Asia-Pacific Region So Important For The OTT Platform?
Given that Netflix’s “home” market of the US and Canada, which generated 44.6 percent of its global revenue, is stagnant, fiercely competitive, and difficult to expand in, the Asia-Pacific area is an indispensable market for the company.
It incurred a loss of 919,000 paid members in the US and Canadian regions in 2022, according to its most recent financial report. However ,silver lining is the fact that the business did manage to grow revenue by 9% . India’s OTT streaming market, which includes both video and audio, has the possibility of growing by almost nine times to reach $15 billion by 2030, according to a 2021 analysis by independent transaction consulting firm RBSA Advisors. This would consist of $2.5 billion for audio and $12.5 billion for the video industry. The OTT market size in 2020 was approximately $1.7 billion.
Growth Accelerators In India
According to the RBSA, one of the primary contributors to this growth is the fact that India has the second-highest per capita consumption of online video worldwide. Other prominent factors are India’s low cost of mobile data, the rapid penetration of internet in rural areas, and the plummeting rise of smartphone users in the country which exceeded the 700 million mark in 2021.
OTT companies have made significant expenditures in original content endeavoring to cater to and bolster the subscriber demand. RBSA predicts that, when integrated with acquired content, subscription video-on-demand would account for 93% of all OTT revenue in India (as opposed to 87% globally), growing at a CAGR (compound annual growth rate) of 30.7% from 2019 to 2024.
Netflix boasts an estimated 6 million subscribers as of the end of 2022, according to Industry sources. The countyr’s top streaming services of now is Disney+Hotstar with 57.5 million subscribers. This comes after it experienced its worst quarterly decline in paid subscribers—3.8 million—during the quarter from October to December 2022 as a result of losing the Indian Premier League’s broadcasting rights (IPL).
Australia is the other market that Netflix believes has promise for 2023. Japan, which accounts for nearly a quarter of Netflix’s overall APAC revenue, is another nation that is essential to the development of the streaming service in the area.