Netflix To Double Original Content Spending In Asia

Netflix Inc. (NASDAQ: NFLX) is set to double its spending on original content in 2021 in Asia as it seeks expansion in the crowded streaming market, Bloomberg reports.

After producing widely-watched shows such as Korean zombie period thriller “Kingdom” and reality series “Indian Matchmaking,” Netflix looks to deepen its growth in the region that has seen the fastest growth in subscribers, Minyoung Kim, Netflix’s vice president of content, said. 

Though Kim did not elaborate on the budget, research firm Media Partners Asia estimates spending of at least $1 billion, Bloomberg notes.

The world’s largest streaming giant said it has spent roughly $2 billion since 2018 on original and licensed local content and has released over 220 original titles in Asia since its launch in 2015.

Why It Matters: Netflix faces intense competition in Asia’s crowded streaming market from rivals Amazon.com Inc.’s (NASDAQ: AMZN) Prime Video and the Walt Disney Company’s (NYSE: DIS) Disney+, along with regional challengers like Viu and Tencent Holdings Ltd.’s (OTC: TCEHY) iflix and WeTV.

Earlier, Netflix Vice President for Business Development in APAC, Tony Zameczkowski, in an interview with CNBC, highlighted the relevance of localized content in the region and the company's efforts to tailor and suit a mostly mobile audience in APAC.

Netflix has been looking to lure users in the region with less costly packages at the expense of profit, a strategy similar to those deployed by many rivals.

Price Action: NFLX shares closed 2.83% higher at $504.58 on Tuesday.