Netflix (NASDAQ:NFLX) has announced the global release of its animated movie Suzume, directed by renowned filmmaker Makoto Shinkai, in 169 countries as of April 6. The company plans to expand availability to more countries by 2025.

The film premiered exclusively on Netflix in Japan on April 5, 2024. This addition to Netflix’s library is part of its strategy to enrich its anime collection, which already features acclaimed works from Studio Ghibli and Studio Ponoc, making high-quality animated films more accessible to a broader audience.

Suzume follows the journey of Suzume Iwato, a 17-year-old high school student, as she embarks on a contemporary adventure. Teaming up with a mysterious young man named Souta Munakata, Suzume aims to seal “doors” and prevent disasters across Japan.

Netflix’s stock has seen a remarkable year-to-date return of 30.7%, outpacing the Consumer Discretionary sector’s growth of 1.4%. This success is largely attributed to the popularity of its recent Japanese content.

Competition in Japan’s Video-on-Demand Market

In recent years, Netflix has witnessed growing demand from Japan, a trend reflected in the expanding subscription video-on-demand (SVOD) market. Dominant players in Japan’s SVOD market include Amazon Prime Video, U-Next, Disney, and Warner Bros. Discovery.

According to a report from GEM, Japan’s SVOD market was valued at 505.4 billion yen in 2023, marking a 12.1% increase from the previous year. This growth trend, fueled by heightened demand for home entertainment during the COVID-19 pandemic, has been consistent since 2020.

Amazon recently acquired the Japanese survival thriller series Acma: Game for global streaming, premiered on Prime Video Japan on April 7, 2024. Additionally, Amazon plans to release the second season of The Silent Service Season One – The Battle of Tokyo Bay and a live-action drama adaptation of OSHI NO KO globally in winter 2024.

Despite facing competition, Netflix has maintained its dominance in Japan’s SVOD market since 2019. However, competitors like U-NEXT have steadily increased their market share, with U-NEXT surpassing Amazon Prime Video to claim the second position in 2022. Disney and Warner Bros. Discovery are also ramping up their efforts to capture a larger share of the market.

Netflix is bolstering its presence in Japan by investing in more Japanese content, including City Hunter, The Grimm Variations, and My Oni Girl. This strategic move is expected to drive growth in the company’s Asia-Pacific revenues in the coming quarters.

Analysts project Netflix’s Asia-Pacific revenues to reach $4.46 billion in 2024, representing an 18.6% year-over-year growth. Earnings are estimated to reach $17.01 per share, indicating a 41.4% year-over-year increase.

Featured Image: Unsplash

Please See Disclaimer