Netflix (NASDAQ:NFLX) recently announced an exclusive partnership with Aki Isoyama, enabling the company to produce and distribute her upcoming films and series for the next five years. Isoyama’s recent time-traveling comedy, “Extremely Inappropriate!,” topped Netflix’s most-watched list in Japan for three weeks. Last year, she produced “Let’s Get Divorced,” which was exclusively distributed by Netflix worldwide and garnered significant attention from viewers.

Acclaimed screenwriter Kankuro Kudo has collaborated with Isoyama on many projects, including “Extremely Inappropriate!,” “Let’s Get Divorced,” “Ikebukuro West Gate Park,” and “Kisarazu Cat’s Eye.” Isoyama also won the 2021 Minister of Education, Culture, Sports, Science, and Technology’s Art Encouragement Prize for her collaboration with Kudo on “Story of My Family!!!” Isoyama and Kudo will team up again for the first title to be produced under this new Netflix deal.

Netflix’s Upcoming Japanese Content to Aid APAC Revenues

Netflix unveiled its 2024 content slate targeting Japan’s expanding streaming market. The lineup includes a mix of Japanese dramas and anime, highlighting Netflix’s commitment to diverse storytelling. This is expected to boost APAC revenues in the upcoming quarters.

The Consensus Estimate for NFLX’s 2024 APAC revenues is pegged at $4.23 billion, indicating 12.7% year-over-year growth.

In 2023, Japanese content on Netflix became the third most viewed non-English content behind Korean and Spanish. Building on that success, upcoming significant titles include “Beyond Goodbye,” “Tokyo Swindlers,” “Meet the Men,” and “Soul Mate.” The anime lineup features new seasons of popular shows like “From Me to You: Kimi ni Todoke” and “Beastars,” as well as new series such as “Moonrise,” “Beat & Motion,” “Devil May Cry,” and “Gundam: Requiem for Vengeance.” This diverse slate showcases Netflix’s strategy to cater to a wide range of audiences in Japan by bringing fresh content and big names in Japanese entertainment to its platform.

However, Netflix faces tough competition in the streaming space from Amazon, Disney, and Paramount Global.

Netflix has gained 33% year to date against the Consumer Discretionary sector’s decline of 1.3%. NFLX also outperformed Amazon and Disney’s rise of 28% and 7.6%, respectively, and Paramount Global’s decline of 21.8%.

Conclusion

Netflix’s expanding regional content is a major positive, which bodes well for the long-term growth of the company. However, competition in the streaming industry remains a concern.

The company’s focus on streaming regional content has been leading to international growth. Netflix is diversifying its content portfolio and working on projects across Japan as well as other places like India, Mexico, Spain, Italy, Germany, Brazil, France, Turkey, and the entire Middle East.

The Consensus Estimate for NFLX’s second-quarter 2024 earnings per share is pegged at $4.70, which has increased 1 cent in the past 60 days. The consensus mark for 2024 earnings is pegged at $18.31 per share, which has also increased 1 cent in the past 60 days.

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