Netflix subscribers in the Asia-Pacific (APAC) region account for the biggest growth factor of the streaming giant in terms of paid membership.
The company announced that 46% of global paid net adds for the third quarter of 2020 came from APAC, the biggest share of any region. However, total global paid net subscriber additions posted only 2.20 million, dropping below analysts’ expectations, and the stock declined in after-hours trading.
Netflix has always focused on international expansion, with Asia deemed as a significant region by management.
While Netflix is not accessible in China, it has removed the likes of India and Japan as countries it is aiming to reach. Part of the company’s approach has been to develop shows that appeal to the local audience but still appeal globally.
Examples are Hindi-language drama “Sacred Games” starring high-profile Bollywood actor Saif Ali Khan and Japanese original “The Naked Director.”
Netflix had to cut production in many parts of the world due to the coronavirus pandemic which led to the delays in the release of some shows. However, it announced that in its second-quarter earnings report, it had resumed production and was “furthest along” in Asia Pacific.
Netflix somehow benefitted from the pandemic, when people are forced to stay at home and consume more content. During the first six months of 2020, Netflix recorded a huge increase in subscribers that surpassed analyst estimates.
In July, Netflix said it expected 2.5 million net subscriber additions for the third quarter, while analysts predicted 3.57 million net adds, according to FactSet consensus estimates.
The video streaming service has garnered 16 million new subscriptions for the first three months of 2020 as global lockdowns have been keeping people at home.
Eric Haggstrom, an analyst for eMarketer, said: “Netflix is and will continue to be the media company least impacted by Covid-19. Their business is a near-perfect fit to a population that is suddenly housebound.”
Netflix Party
A Google chrome extension called Netflix Party allows friends to watch movies together while social distancing.
By using this extension, people with Netflix subscription can watch films virtually at the same time. The extension features a chat room, where users can exchange messages and share reactions as they watch the film.
Users need Google Chrome browser, the extension, and a Netflix subscription. One should go to netflixparty.com and follow their instructions:
- Install – Start off by clicking the “Install Netflix Party” button on this page. Once you are redirected to the Chrome Web Store, click “Add to Chrome” to finish installing Netflix Party.
- Open a video in Netflix – Go to Netflix’s website. Choose any show you would like to watch and start playing the video.
- Create your party – To create your party, click on the red “NP” icon located next to the address bar. Then click “Start Party” to get the party started, and share the party URL to invite friends.
- Join a party – To join a party click on the party URL, which will redirect to Netflix’s website. Then click on the “NP” button next to the address bar, and you should automatically join the party.
