Netflix Inc's (NASDAQ:NFLX) Japan subscribers crossed the 10 million mark in the first half of 2024, doubling in the last four years, as the streaming giant's Japanese-language content, including "Tokyo Swindlers," "The Queen of Villains" and "The Boyfriend" gain traction.
Kaata Sakamoto, VP of content for Japan, told Reuters that the country prefers Japanese-language content.
Only two English-language series, including "One Piece" and the fourth season of "Stranger Things," made a mark in Japan.
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In September, Netflix inked a five-year deal with the director of "Tokyo Swindlers" Hitoshi One, about a team of real estate crooks.
Netflix told Reuters that Japanese content is its third-most-viewed non-English content after Korean and Spanish, and its anime titles amassed over 1 billion views globally in 2023.
Sony Group Corp (NYSE:SONY) is reportedly considering the acquisition of Japanese publisher Kadokawa to expand its gaming and anime moat.
Jefferies has identified Netflix as one of the key beneficiaries of the booming anime industry apart from Sony. It flagged the global impact of Japanese anime IP, with the top six franchises generating an aggregate revenue of $311 billion.
Netflix has also ramped up local content production in Southeast Asia, preferably in Indonesia and Thailand, following the success of the South Korean hit "Squid Game."
Netflix stock surged 93% year-to-date. The company reported third-quarter revenue of $9.83 billion, up 15%, topping the Street consensus of $9.77 billion. EPS of $5.40 surpassed the Street estimate of $5.12.
Netflix ended the quarter with 282.72 million global paid subscribers, up 14.4%. It added 5.07 million new paid subscribers in the quarter.
The streaming giant projected fourth-quarter revenue of $10.13 billion, below the analyst consensus of $10.14 billion and EPS of $4.23, compared to the analyst consensus of $4.21.
Investors can gain exposure to Netflix through Goldman Sachs Innovate Equity ETF (NYSE:GINN) and ETF Opportunities Trust WealthTrust DBS Long Term Growth ETF (NYSE:WLTG).
Price Action: NFLX stock is up 1.4% at $914.51 at last check Wednesday.
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