Back
~
2
min read
· Posted on
February 21, 2024

Netflix is plotting its next move after a rough start to the year and can we get a Squid Game film, pls?

After losing 200,000 subscribers, Netflix needs a new plan. And it reckons it's got one.

What's the key learning?

  • Netflix lost 200,000 subscribers over the first 3 months of the year
  • It's planning to increase its investment in Asia to fund news films and series, believing Asia to be a good test market for emerging markets
  • A test market is generally a geographic region used to test interest in a product or service before a full product roll-out.

👉 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.

Ready to win at money?

Sign up for Flux and join 100,000 members of the Flux family

A button to App StoreGoogle Play store button
Excellent  4.9 out of 5
Star rating
No items found.