👉 Background: We know Netflix has had a bit of a rough start to the year. It revealed that it actually lost 200,000 subscribers over the first 3 months of the year, and its shares have tanked.

👉  What happened: Netflix has been looking at new ways to increase profits like raising prices, cracking down on password sharing and investing in new content. Now, the company's turning to Asia.

👉 What else: Netflix is set to increase its investment in Asia to fund new films and series. It'll also continue offering a low-price, mobile-only membership, and it'll seek out partnerships to increase its reach. It chose Asia 'cos it reckons it's a good test market.

What's the key learning?

💡A test market is generally a geographic region used to test interest in a product or service before a full product roll-out. The test market will largely depend on where the company wants to expand or export its product to next.

💡Oz is often a popular test market for American tech companies because we're considered to be similar in terms of purchasing and consumption behaviour. Companies are also comfortable taking a punt on our comparatively smaller numbers.

💡Netflix is looking for a test market to inform its next move in emerging markets, like Africa or Latin America. So, it'll use Asia to leverage its learnings before going big on other continents.

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