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Netflix Partners Korean Studios to Boost Content Portfolio

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Netflix’s (NFLX - Free Report) focus on streaming regional content has been leading to international growth. In the recently concluded third-quarter 2019, the company added 6.26 million paid international members, up 23.5% year over year.

The company is working on projects across Mexico, Spain, Italy, Germany, Brazil, France, Turkey and the entire Middle East. It also has a strong slate of shows for India and launched a low-priced mobile plan in the country to attract more subscribers.

Further, in terms of languages, the company started offering services in Vietnamese, Hungarian and Czech during the third quarter.

Netflix is also focused on expanding its Korean and Japanese content. Recently, the streaming giant inked partnerships with two leading Korean content houses — JTBC Content Hub and CJ ENM.

Moreover, the company is collaborating with the Academy Award-nominated animation studio, Tonko House, to launch ONI, an all-new original series based on Japanese folklore.
 

 

Korean Content Partnerships Details

The latest partnership with JTBC Content Hub will enable Netflix to stream JTBC’s prime-time TV dramas across more than 190 countries, beginning 2020.

As part of the expanded deal, JTBC and Netflix will co-develop and showcase JTBC’s prime-time TV dramas globally. The companies have been partners since April 2017.

Further, Netflix’s three-year partnership with CJ ENM and its subsidiary Studio Dragon includes the production of original series, which will be available to the subscribers of the former globally. The company will also receive distribution rights to other select Studio Dragon titles.

Moreover, CJ ENM will have the right to sell up to 4.99% of Studio Dragon shares to Netflix.

Focus on Animated Series

Netflix’s expanding animated original series portfolio, which targets kids and families, is expected to help it counter stiff competition from Disney’s (DIS - Free Report) recently launched (Nov 12) Disney+ streaming service.

Apart from ONI, Netflix’s portfolio now includes Ghee Happy from Sanjay Patel, Mighty Little Bheem from Rajiv Chilaka, Larva Island from Korea’s TUBAn Co., Dino Girl Gauko from Akira Shigino, Mama K’s Team 4 from Malenga Mulendema and Maya and the Three from Jorge Gutierrez.

Additionally, Netflix has a strong slate of anime content, including shows like Magic: The Gathering, Pacific Rim, Altered Carbon, Ghost in the Shell: SAC_2045, Transformers: War for Cybertron, Cannon Busters, Seis Manos and Levius.

Notably, Man of Steel director Zack Snyder is collaborating with Netflix to create an all-new anime series based on the world of Norse mythology.

Diverse Content to Strengthen Competitive Position

Netflix has been severely affected by negative headlines related to increasing competition in the streaming space. Notably, Apple (AAPL - Free Report) launched its much-anticipated Apple TV+ on Nov 1, which was followed by Disney+. Other notable upcoming services include NBCUniversal’s Peacock and HBO max.

Moreover, Amazon (AMZN - Free Report) has been taking initiatives to fortify presence in the streaming space through its prime video service.

Netflix plans to counter rising competition on the back of robust content portfolio and binge viewing. The streaming giant is estimated to spend $15 billion this year on content compared with $12 billion in 2018.

Netflix currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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