As Disney, Amazon and other streaming media competitors are cutting costs,$Netflix (NFLX.US)$they are taking the opportunity to increase their market expansion efforts.

Netflix's expansion strategy is to increase localized content production in Southeast Asia, trying to replicate the success of the hit Korean original drama "Squid Game" to expand its user base in the region.

Netflix will focus on expanding in the Southeast Asian market.

Recently, Minyoung Kim, Vice President of Netflix Asia (excluding India) content, said at a company event in Jakarta that Netflix is increasing the available programs in Southeast Asia and producing more localized content to attract more Southeast Asian audiences.

The Asia-Pacific region is currently Netflix's smallest market. In 2023, the Asia-Pacific market accounted for only 11% of Netflix's total revenue. However, the region is densely populated and has a large number of young people, which means there is enormous market potential.

Previously, Netflix relied on a "localized" strategy to break into the Japanese and Korean markets: Korean original drama "Squid Game" and Japanese manga adaptation "One Piece" were not only successful in Japan and Korea, but also popular worldwide.

Currently, Netflix plans to follow this model in Thailand, Indonesia and the Philippines. In Thailand, Netflix plans to release 10 original works this year, an increase from 6 works in 2023. Meanwhile, the number of original films and television works produced by Netflix in Indonesia will also increase, along with the production budget.

"We have a responsibility to ensure that these stories not only find an audience in their home countries, but also resonate with audiences beyond their borders, allowing viewers everywhere to discover stories they love," said Kim.

Will they replicate the success of "Squid Game"?

According to Media Partners Asia, localized content is particularly important in Asia, as around 80% of Asian paid video users are attracted by this type of localized content.

Although Netflix entered some Southeast Asian markets as early as 2016, it was not until recently that Netflix began to launch original dramas and films in the region. Last year, the Thai horror movie "Krasue: Inhuman Kiss" and the Indonesian series "The Girl from Nowhere" were both popular worldwide, a rare success for Southeast Asian films and TV shows.

Now, Netflix hopes to continue this success and expand further.

Netflix's Indonesian sci-fi series "Night Teeth and Day Dreams" will be released this month, and the Indonesian action film "The Shadow Strays" will be released soon. In addition, Netflix is also producing Indonesia's first large-scale zombie horror drama "Abady Nan Jaya" (tentative title), which is expected to be released in 2025.

It's worth noting that while Netflix is working hard to expand its market and pursue faster user growth, its competitors are adopting the opposite strategy and withdrawing from the battle for users to ensure profitability. Walt Disney has recently suspended original content creation and raised subscription prices for members, while Amazon has recently cut back on spending on its streaming business. Earlier this year, Amazon announced that its media and live platform would lay off hundreds of people.

In order to ensure profitability, Walt Disney has recently suspended original content creation and raised the membership subscription price threshold, while Amazon has also been reducing streaming media business expenses. In early this year, Amazon announced that its media and live platform will dismiss hundreds of people.

Editor/Somer