Yahoo Finance Netflix (NFLX) Bolsters APAC Segment With Latest Korean Show
Netflix’s NFLX efforts to bolster its regional content portfolio offerings have been a major growth driver.
The company recently confirmed the production of Aema, a Korean original series following the struggles of Hui-ran and Joo-ae in creating the 1980s hit film Madame Aema, set in 80s Chungmuro, showcasing the harsh realities of actors in the glitzy Korean film industry.
While popular Korean actress Hanee Lee will star as Jeong Hui-ran, a renowned actress removed from Madame Aema due to a studio dispute, rookie actor Shin Joo-ae will as the lead of Madame Aema.
On the other hand, the versatile actor Jin Sun-kyu will portray Gu Jung-ho, a producer struggling in Chungmuro's competitive film scene.
Netflix, Inc. Price and Consensus
Netflix, Inc. price-consensus-chart | Netflix, Inc. Quote
Aema, directed by Lee Hae-young of Believer, Phantom and Like a Virgin, is set to premiere on Netflix in 190 countries.
Expanding Regional Portfolio
Netflix is adding an array of Korean originals to its portfolio of regional content offerings.
The recent release of Korean originals like Mask Girl and the ongoing K-dramas Behind Your Touch and Destined With You holds testimony to the aforesaid fact.
While Mask Girl is placed second in the weekly Top 10 Non-English TV charts with 3.5 million views, Destined With You and Behind Your Touch is ranked third and seventh with 2.9 million and 1.4 million views, respectively.
Expanding the Korean language portfolio will strengthen the Asia-Pacific (APAC) segment’s performance in the near term.
For the second quarter of 2023, the paid subscriber base for APAC jumped 16.5% year over year to 40.55 million, adding 1.07 million new paid subscribers.
Wrapping Up
Strong momentum in Netflix’s foreign-language portfolio offerings will benefit top-line growth amid stiff competition from industry peers like Apple AAPL, Disney DIS and Amazon AMZN.
Netflix’s shares have gained 51.2% year to date, outperforming the Zacks Consumer Discretionary sector’s return of 8.5%. It also outperformed Apple and Disney but underperformed Amazon.
Notably, shares of Apple and Amazon have returned 37.4% and 68.1%, respectively, while shares of Disney have declined 4.4% on a year-to-date basis.
For the third quarter of 2023, Netflix forecasts earnings of $3.52 per share, indicating an almost 10% increase from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for the same is pegged at $3.49 per share, indicating year-over-year growth of 12.58%.
Total revenues are anticipated to be $8.52 billion, suggesting growth of 7% year over year and also on a forex-neutral basis. The consensus estimate for the same is pegged at $8.53 billion, suggesting growth of 7.59% on a year-over-year basis.
Currently, Netflix 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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