Yahoo Finance Netflix's (NFLX) Growing Korean Content to Aid APAC Revenues
Netflix NFLX has gained 40.8% year to date against the Zacks Consumer Discretionary sector’s 1.2% decline. The outperformance can be attributed to the success of its international content.
The streaming giant has become one of South Korea's leading video streaming platforms.
This Zacks Rank #3 (Hold) company recently announced a collaboration with director Yeon Sang-ho and writer Choi Gyu-seok to adapt another gripping comic series, Revelations, following the success of their thriller Hellbound. This new film centers around a pastor and a detective, each driven by their distinct beliefs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Yeon and Choi, known for their deep exploration of themes like life and death in Hellbound, aim to challenge viewers once more with Revelations by examining the intersections of religion, humanity, belief and conviction. The film promises to deliver a thought-provoking narrative, featuring Ryu Jun-yeol as Min-chan, a pastor on a quest for retribution, and Shin Hyun-been as Yeon-hee, a relentless detective in her pursuit of justice despite her personal struggles.
Acclaimed director Alfonso Cuarón joins as an executive producer, adding his expertise to the project. Produced by WOW POINT, a global content company with active productions in Korea, the United States and Japan, Revelations is poised to be a compelling and emotionally charged film with the legacy of Yeon and Choi's impactful storytelling.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
NFLX Faces Competition in South Korea’s Video-on-Demand Market
While Netflix remains a market leader, it faces increasing competition from other platforms. As the market continues to grow, NFLX will need to innovate and expand its content offerings to maintain its leading position and meet the evolving preferences of South Korean viewers.
A report by the Economic Times indicates significant growth in South Korea's subscription video market, which gained more than 700,000 subscribers in the last quarter, surpassing a total of 19 million subscribers. This surge underscores the increasing popularity and demand for video-on-demand services in the country.
Disney’s DIS Disney+ emerged as the fastest-growing platform during this period, amassing approximately two million subscribers. This rapid growth highlights Disney+'s successful entry and expansion in the competitive South Korean market, driven by its extensive library of popular content and strategic marketing efforts.
Despite the impressive growth of Disney+, Netflix and Tving continue to dominate the market as the leading platforms. Netflix, with its extensive catalog of international and local content, maintains a strong presence and a loyal subscriber base. Tving, a domestic service, also holds a significant share of the market by offering a variety of Korean dramas, movies and shows that cater to local tastes.
Some other notable players in South Korea’s video-on-demand market are Fox’s FOXA Tubi, and Alphabet’s GOOGL YouTube.
Tubi provides around 200 free Korean titles, spanning from the late '90s to 2023, under its K-Drama Plus category. This selection includes both subtitled and a few English-dubbed movies and TV series. To create a personal watch list, users need to register for an account. Tubi is accessible on all major streaming devices, including gaming consoles and smart TVs.
Alphabet's YouTube Red, an ad-free subscription service launched in 2016, offered exclusive content and features like background play. It has since evolved into YouTube Premium, which now delivers an ad-free experience, background play and download options across its extensive video library.
Upcoming Korean content from NFLX includes much anticipated titles like You Have Done Well, Hong Rang and Agents of Mystery, which are expected to drive subscriber growth and boost the company’s APAC revenues in the upcoming quarters.
The Zacks Consensus Estimate for NFLX's 2024 APAC revenues is pegged at $4.23 billion, indicating 12.7% year-over-year growth. The consensus mark for earnings is pegged at $18.31 per share, suggesting 52.2% year-over-year growth.
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