Netflix's Strategic Bet on Asia: Will BIFF Tie-Up Strengthen Its Lead?

Netflix’s NFLX strategic focus on Asia has become a cornerstone of its global growth strategy. The Asia-Pacific (APAC) region has consistently outperformed other markets, emerging as the company’s strongest growth engine. In the second quarter of 2025, APAC revenues climbed 24.1% year over year, the highest among all other regions. This momentum is driven by rising internet penetration, mobile-first viewing habits and an increasing demand for regional storytelling.

To capitalize on this growth, Netflix is making significant investments in localized content and creative talent. It has committed $2.5 billion to expand Korean content by 2027 and allocated $18 billion in 2025 for India alone, supporting a slate of 28 originals. Multiple production hubs in Seoul, Tokyo, and Mumbai further strengthen its content pipeline, ensuring day-one global releases with multi-language support.

The streaming giant’s recent expansion of the Creative Asia program at the Busan International Film Festival (BIFF) 2025 underscores this commitment. This initiative focuses on nurturing emerging Asian filmmakers together with acclaimed creators like Guillermo del Toro, Yeon Sang-ho and Maggie Kang, while offering mentorship, training and exposure to global production practices. With upcoming titles like Genie, Make a Wish (South Korea), Alice in Borderland: Season 3 (Japan) and Inspector Zende (India), Netflix is strengthening its regional presence and reaffirming its ambition to dominate the APAC streaming landscape.

By aligning with BIFF, the company is building a pipeline of authentic local stories, strengthening its brand credibility and creating exclusive partnerships before rivals like Disney+ and Amazon Prime. This proactive approach positions Netflix to maintain momentum and extend its lead in one of the world’s fastest-growing streaming markets.

How Global Giants Compete for Streaming Supremacy in APAC

The battle for dominance in Asia’s booming streaming market is heating up, with Amazon (Prime Video) and Disney (Disney+) ramping up their efforts to challenge Netflix’s stronghold.

Amazon AMZN is using its robust e-commerce ecosystem to expand Prime Video across APAC, bundling streaming with Prime membership and offering competitive pricing. Its multilingual access and exclusive sports rights, such as live cricket, further boost appeal. However, Amazon’s biggest hurdle lies in its relatively limited library of locally resonant content. To bridge this gap, the company plans major 2025 releases, including the espionage thriller The Terminal List: Dark Wolf, returning hits like Upload and The Summer I Turned Pretty and the much-anticipated film You’re Cordially Invited, signaling a push for stronger regional engagement.

Disney DIS, on the other hand, banks on its globally renowned franchises — Marvel, Star Wars and Pixar — to attract family audiences. Bundling strategies like Disney+ Hotstar in India, coupled with aggressive pricing and high-profile sports rights, have delivered strong subscriber gains, occasionally surpassing Netflix in key markets. Yet, Disney relies heavily on family-friendly content and big franchises, which limits its appeal to wider audiences. To grow in APAC, Disney+ is expanding locally relevant originals in 2025, including the Japanese drama Gannibal Season 2 and a reality show with Snow Man, alongside global releases like Mufasa: The Lion King, Snow White and Avatar: Fire and Ash.

NFLX’s Price Performance, Valuation & Estimates

Shares of Netflix have gained 35.4% year to date compared with the Zacks Broadcast Radio and Television industry’s return of 27.4%.

NFLX’s YTD Price Performance

From a valuation standpoint, Netflix appears overvalued, trading at a forward 12-month price-to-sales ratio of 10.5 compared to the broader Zacks Broadcast Radio and Television industry's forward earnings multiple of 4.82X. NFLX carries a Value Score of D.

NFLX’s Valuation

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 2025 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.

NFLX stock currently carries 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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This article originally published on Zacks Investment Research (zacks.com).

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