Netflix uses Squid Game playbook for untapped South-east Asia

SEOUL - Netflix is ramping up local production in South-east Asia, aiming to boost its subscriber base in the populous region even as its US rivals are pulling back.

The world’s largest streaming TV service is increasing the number of titles available and the number of shows it produces in the region in an effort to reach more viewers, Ms Kim Min-young, vice-president of content for Asia excluding India, said at a company event in Jakarta.

“It is on us to make sure that these stories find audiences not only within their home countries but also beyond domestic markets, enabling audiences around the world to discover the stories that they will love,” Ms Kim said.

The Asia-Pacific region is currently the smallest market for Netflix, accounting for about 11 per cent of revenue in 2023. But a large, young demographic also presents a significant opportunity for growth.

Following the success of original shows from South Korea, such as Squid Game, and Japan’s pirate series One Piece, Netflix is adopting the playbook in Thailand, Indonesia and the Philippines.

In Thailand, the company plans to release 10 original titles in 2024, up from six in 2023. That is the most of any country in the region. Indonesia will also see an increase in original titles and a bigger production budget.

Localised content is especially crucial in Asia, since about 80 per cent of premium video engagement is powered by such titles, according to Media Partners Asia.

Netflix’s push in South-east Asia contrasts with major rivals that are pulling back amid shareholder pressure to stop chasing subscriber growth at the expense of profitability.

Walt Disney has paused original content creation and increased subscription prices in the market. Amazon’s Prime Video has also retrenched.

Netflix only recently started to pump out original series and films in the region, after launching in some South-east Asian countries in 2016.

Its Thai thriller Hunger and Indonesian series Cigarette Girl, both released in 2023, were global hits and rare successes for South-east Asian programming created by one of the global streaming services. The company wants to make that a more regular occurrence.

In Indonesia, Netflix is betting on big-budget shows that would be distinctly different from local streaming service Vidio, which is focused on sports and shorter dramas.

Supernatural sci-fi series Joko Anwar’s Nightmares And Daydreams, which debuted in June, and upcoming action film The Shadow Strays, starring a 17-year-old female assassin, are two recent examples.

Netflix is also producing Indonesia’s first large-scale zombie horror series, Abadi Nan Jaya (working title), which is set to be unveiled in 2025.

While horror and crime thrillers play well in Indonesia, Thailand is open to programming on a wider variety of topics – ranging from comedy to sexual genres, reflecting the cultural background of a nation that is set to become the first South-east Asian country to legalise same-sex marriage.

Thai creators working for foreign platforms have more freedom than those in neighbouring countries because they submit their projects for approval to tourism officials, rather than the Culture Ministry, which has stricter guidelines, said Mr Kongdej Jaturanrasamee, director of Doctor Climax, a Netflix original drama about a skin doctor who turns into a sex columnist.

“Indonesia still tends to have more conservative themes as it is a Muslim country,” said Ms Dhivya T, lead analyst at Media Partners Asia. “Thai content is more accessible and travels a bit more in the South-east Asia region with its universal storylines as well as production values.” BLOOMBERG