Netflix’s success across the region comes from a strategy it has consistently implemented in most Asia-Pacific markets: investing in more locally produced content, like big-budget Korean dramas “Mr. Sunshine,” “Kingdom,” and “Hotel Del Luna,” while also offering popular international content.
In Indonesia, state-owned telecom giant Telkom Group recently lifted its ban on the service, which will likely see new subscribers as Netflix’s investment in original content continues and its library grows. Also driving sign-ups are mobile-only plans, which the company launched in India in August 2019 and subsequently rolled out in Malaysia, Thailand, the Philippines, and Indonesia. Priced at below $5 a month, these plans are a departure for Netflix, which has held firm on pricing in Western markets, and are likely an answer to the Disney+ Hotstar launch in Southeast Asia.
By and large, we expect there will be 97.8 million Netflix users in Asia-Pacific by the end of this year, making up 18.4% of worldwide Netflix users. Growth will continue through the end of our forecast period, reaching 145.3 million users by the end of 2024. That’s a gain of 47.5 million users from 2020.
As for non-subscription digital video content, YouTube—another platform currently banned in China—remains the top free option in most countries within Asia-Pacific. In South Korea, for example, 91.5% of digital video viewers will watch YouTube at least once a month in 2020. As more people continue to shelter in place, the platform’s penetration rate among digital video viewers in Asia-Pacific will increase in 2020 before declining in 2021 through the rest of our forecast period.