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Netflix's APAC Focus Boosts Prospects: Will the Momentum Continue?
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Key Takeaways
Netflix's APAC revenues rose 24.1% in Q2 2025, the highest growth among all regions.
'Local for local' content and ad-supported plans drive Netflix's APAC momentum.
India emerges as Netflixs fastest-growing market with strong potential.
Netflix’s (NFLX - Free Report) Asia-Pacific (APAC) region has become its strongest growth engine, consistently outpacing other markets over the past three quarters. In the second quarter of 2025, APAC revenues increased 24.1% year over year — the highest among all regions — compared to 14.7% growth in the United States & Canada and 18% in EMEA. Subscriber numbers continue climbing; the region now accounts for about 57.5 million members, making APAC a pivotal pillar in the company’s global expansion.
Netflix’s “local for local” content strategy plays a crucial role. By investing in culturally resonant originals across key markets like Korea, India, Japan, Thailand and Southeast Asia, the company is winning over audiences with stories that connect deeply with local preferences. The growing adoption of its ad-supported tier, particularly in price-sensitive APAC regions, adds a high-margin revenue stream, while favorable currency trends have modestly boosted international revenues. Upcoming releases such as Genie, Make a Wish (South Korea), Inspector Zende (India) and Romantics Anonymous (Japan) further strengthen its regional slate, reinforcing Netflix’s commitment to dominating APAC streaming growth.
APAC’s growth potential remains convincing, backed by a robust market outlook. The region’s video streaming market is expected to grow at a 22.6% CAGR through 2030. Valued at $62.27 billion in 2022, the OTT sector is set for rapid expansion through 2028, driven by affordable data plans, rising internet penetration and an expanding middle class. India stands out as the company’s fastest-growing market, poised to deliver the highest CAGR among all regions in the coming years.
With international regions contributing over half of total revenues and APAC emerging as a key driver, Netflix’s projected 2025 revenues of $45 billion reflect strong investor confidence. Continued investment in local content and ad-supported plans indicates that this momentum is not over yet.
How Rivals Stack Up Against NFLX in the APAC Region
Amazon (Prime Video) and Disney (Disney+) are intensifying their battle with Netflix in the APAC region, leveraging their strengths while addressing weaknesses to sharpen their competitive edge.
Amazon (AMZN - Free Report) leverages its powerful e-commerce ecosystem to grow Prime Video across APAC, offering multilingual access and live sports rights that strengthen appeal. Amazon also benefits from Prime’s global scale, making Prime Video widely available in Asian markets with competitive pricing. Yet, Amazon faces a challenge in APAC, where audiences favor locally resonant storytelling. Without deeper investment in regional originals, Prime Video risks losing ground to Netflix and faster-moving regional rivals.
Disney (DIS - Free Report) leverages its powerful franchises — Marvel, Star Wars and Pixar — to draw families across APAC, supported by competitive pricing and bundles like Hotstar in India that often undercut Netflix. Disney’s localization efforts, including IPL cricket and regional films, have fueled strong subscriber growth, sometimes surpassing Netflix in key markets. However, a heavy focus on family content and reliance on a few blockbuster franchises risks limiting broader appeal. To sustain its APAC edge, Disney+ must diversify into edgier, locally relevant originals.
NFLX’s Price Performance, Valuation & Estimates
Shares of Netflix have gained 36% year to date compared with the Zacks Broadcast Radio and Television industry’s return of 27.4%.
NFLX’s YTD Price Performance
Image Source: Zacks Investment Research
Netflix trades at a premium with a forward 12-month P/S ratio of 10.59 compared to the broader Zacks Broadcast Radio and Television industry's forward earnings multiple of 5.03. NFLX carries a Value Score of F.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2025 revenues is pegged at $45.03 billion, reflecting 15.47% year-over-year growth. The consensus mark for earnings is pegged at $26.06 per share, unchanged over the past 30 days and up 2.9% over the past 60 days. This indicates a 31.42% increase from the previous year.
Image: Bigstock
Netflix's APAC Focus Boosts Prospects: Will the Momentum Continue?
Key Takeaways
Netflix’s (NFLX - Free Report) Asia-Pacific (APAC) region has become its strongest growth engine, consistently outpacing other markets over the past three quarters. In the second quarter of 2025, APAC revenues increased 24.1% year over year — the highest among all regions — compared to 14.7% growth in the United States & Canada and 18% in EMEA. Subscriber numbers continue climbing; the region now accounts for about 57.5 million members, making APAC a pivotal pillar in the company’s global expansion.
Netflix’s “local for local” content strategy plays a crucial role. By investing in culturally resonant originals across key markets like Korea, India, Japan, Thailand and Southeast Asia, the company is winning over audiences with stories that connect deeply with local preferences. The growing adoption of its ad-supported tier, particularly in price-sensitive APAC regions, adds a high-margin revenue stream, while favorable currency trends have modestly boosted international revenues. Upcoming releases such as Genie, Make a Wish (South Korea), Inspector Zende (India) and Romantics Anonymous (Japan) further strengthen its regional slate, reinforcing Netflix’s commitment to dominating APAC streaming growth.
APAC’s growth potential remains convincing, backed by a robust market outlook. The region’s video streaming market is expected to grow at a 22.6% CAGR through 2030. Valued at $62.27 billion in 2022, the OTT sector is set for rapid expansion through 2028, driven by affordable data plans, rising internet penetration and an expanding middle class. India stands out as the company’s fastest-growing market, poised to deliver the highest CAGR among all regions in the coming years.
With international regions contributing over half of total revenues and APAC emerging as a key driver, Netflix’s projected 2025 revenues of $45 billion reflect strong investor confidence. Continued investment in local content and ad-supported plans indicates that this momentum is not over yet.
How Rivals Stack Up Against NFLX in the APAC Region
Amazon (Prime Video) and Disney (Disney+) are intensifying their battle with Netflix in the APAC region, leveraging their strengths while addressing weaknesses to sharpen their competitive edge.
Amazon (AMZN - Free Report) leverages its powerful e-commerce ecosystem to grow Prime Video across APAC, offering multilingual access and live sports rights that strengthen appeal. Amazon also benefits from Prime’s global scale, making Prime Video widely available in Asian markets with competitive pricing. Yet, Amazon faces a challenge in APAC, where audiences favor locally resonant storytelling. Without deeper investment in regional originals, Prime Video risks losing ground to Netflix and faster-moving regional rivals.
Disney (DIS - Free Report) leverages its powerful franchises — Marvel, Star Wars and Pixar — to draw families across APAC, supported by competitive pricing and bundles like Hotstar in India that often undercut Netflix. Disney’s localization efforts, including IPL cricket and regional films, have fueled strong subscriber growth, sometimes surpassing Netflix in key markets. However, a heavy focus on family content and reliance on a few blockbuster franchises risks limiting broader appeal. To sustain its APAC edge, Disney+ must diversify into edgier, locally relevant originals.
NFLX’s Price Performance, Valuation & Estimates
Shares of Netflix have gained 36% year to date compared with the Zacks Broadcast Radio and Television industry’s return of 27.4%.
NFLX’s YTD Price Performance
Image Source: Zacks Investment Research
Netflix trades at a premium with a forward 12-month P/S ratio of 10.59 compared to the broader Zacks Broadcast Radio and Television industry's forward earnings multiple of 5.03. NFLX carries a Value Score of F.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NFLX’s 2025 revenues is pegged at $45.03 billion, reflecting 15.47% year-over-year growth. The consensus mark for earnings is pegged at $26.06 per share, unchanged over the past 30 days and up 2.9% over the past 60 days. This indicates a 31.42% increase from the previous year.
Image Source: Zacks Investment Research
NFLX stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.