Netflix Discloses Regional Subscriber Growth for First Time

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Netflix CEO Reed Hastings

The streamer makes the most per subscriber in the U.S. but saw the biggest year-over-year growth in subscribers in the Asia-Pacific region, newly revealed financial information shows.

Netflix has for the first time disclosed detailed information about its international business, revealing in a financial filing on Monday its pace of growth in four regions. 

Europe, the Middle East and Africa (EMEA) is the streaming giant's second-largest region outside of the U.S. and Canada with nearly 47.4 million paid subscribers as of Sept. 30. That represents growth of nearly 40 percent from the same period in 2018, but comes at the expense of its average monthly revenue per paying membership, which was down 3 percent to $10.26. 

The Asia-Pacific region is Netflix's fastest-growing market, with subscribers up 53 percent to 14.5 million as of the third quarter. Revenue per subscriber was down 1 percent to $9.31. Latin America, meanwhile, has 29.4 million paid subscribers, up 22 percent year-over-year on a 3 percent decline in revenue per subscriber.

The Reed Hastings-led company has been facing increased scrutiny about its long-term ability to keep adding subscribers amid increased competition from entertainment rivals like Disney, which launched Disney+ in November, and WarnerMedia, which will roll out HBO Max in the spring. Netflix has also seen a deceleration of growth in the U.S. and Canada, its most mature market. The region, which grew subscriptions by just 6.5 percent compared with the third quarter last year, is the only region where the streamer has been able to add paying members while also increasing its pricing. Its average monthly revenue per subscriber is up 11 percent year-over-year to $12.36. 

By disclosing the regional data, Netflix is showcasing its first-mover advantage in many parts of the world while also offering up a more complete picture of its business outside the U.S., which had been its focus until a 2015 launch into 130 new countries on the same day. To grow its international business, the streamer has placed an emphasis on buying local-language programming and shows and films that can attract audiences across borders. 

Netflix's stock was flat after-hours on the Nasdaq. It closed the day up nearly 2 percent to $304.21.