‘Squid Game’ Could Drive Netflix Asia Sub Growth

Netflix original South Korean series “Squid Game” generated 142 million households watching the horror show worldwide in its first 28 days on the SVOD platform.

New data from Bloomberg Intelligence suggests Netflix could double its Asian subscriber count with the addition of other localized content. The SVOD pioneer ended the most-recent fiscal period with more than 30 million Asia Pacific region subs, including 2.2 million net new subs — the highest regional gain.

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“So far this year, almost half of Netflix’s new users came from this region, where the company has just 16% penetration in its targeted market,” Bloomberg analysts Geena Ranganathan and Kevin Near wrote in a note.

The analysts contend the streamer could double subscribers to more than 65 million by 2024. They believe Netflix could capture 30% of the Asian-Pacific’s 214 million broadband households, with the region representing 22% of Netflix’s 2024 subscriber base compared with the current 14%.

In the United States, Netflix household penetration is near 60%, with Europe, Middle East and Africa (EMEA) around 26%, and Latin America at 45%.

Other Netflix strongholds in Asia, include Japan, with 23% of APAC households, excluding China), South Korea (12%) and India (14%).

Ranganathan and Near say Netflix got off to a strong start in the current 4Q and could top its 8.5 million projected subscriber additions. They cited Sensor Tower data that suggested a 26% increase in global downloads from Oct. 1-20, compared with the previous-year period.

“Returning hit shows such as ‘The Witcher,’ ‘You,’ ‘Money Heist,’ ‘Emily in Paris’ and ‘Tiger King,’ could help sustain momentum through the rest of the year, while movies like Red Notice and Don’t Look Up may increase engagement,” they wrote.