Netflix Will Spend More on International Markets than Stateside
Netflix plans to invest more than half of its annual budget in content produced outside of North America. This year, Netflix will spend about $8 billion on international content, including its original content for international markets and licensing of titles. Production costs have increased in the United States, prompting platforms to focus on international content. Netflix and Amazon aim to produce global hits like “Squid Game”. Looking abroad for growth, the US market is saturating. However, expanding into markets like India and Africa does not necessarily guarantee success. The average revenue per user varies significantly between domestic and international subscribers, indicating challenges in global expansion of streaming services. For example, the average monthly revenue per user (ARPU) for Warner Bros.’ Max streaming service in the last quarter of 2023 was $10.66 for domestic subscribers and only $3.37 internationally. This difference highlights the importance of retaining valuable domestic subscribers as the company seeks to expand its streaming service globally, which is extremely costly, as Netflix has learned.
Last year saw a significant decline in the production of US shows, dropping by 24% to 481, compared to the 633 in 2021 and 2022. The decrease in scripted shows released in 2023 was unsurprisingly influenced by simultaneous strikes by Hollywood screenwriters and actors, which halted most productions from May until November.
Serialized content from three of the largest providers comprised nearly 60% of Netflix’s programming in terms of minutes viewed (Disney 19%, NBCUniversal 19%, and WarnerMedia 17%). Additionally, in the United States, only seven of the top 100 most demanded shows in 2022 were Netflix originals.
Netflix is shifting its focus back to licensing third-party shows (“Suits”, “Lucifer”) and films following a decline in original content. This strategic pivot aims to enrich its catalog and retain subscribers by revitalizing forgotten gems and underperforming shows. Despite this shift, Netflix will continue investing in original programming, albeit to a lesser extent than before, as it maintains its dominance in the streaming landscape.
Source: FilmTake
Share:
The Mandalorian Secures $21M Tax Credits for California Filming
The Silent Challenge of Decaying Movie and TV Show Files in Digital EntertainmentRelated Posts
Netflix plans to invest more than half of its annual budget in content produced outside of North America. This year, Netflix will spend about $8 billion on international content, including its original content for international markets and licensing of titles. Production costs have increased in the United States, prompting platforms to focus on international content. Netflix and Amazon aim to produce global hits like “Squid Game”. Looking abroad for growth, the US market is saturating. However, expanding into markets like India and Africa does not necessarily guarantee success. The average revenue per user varies significantly between domestic and international subscribers, indicating challenges in global expansion of streaming services. For example, the average monthly revenue per user (ARPU) for Warner Bros.’ Max streaming service in the last quarter of 2023 was $10.66 for domestic subscribers and only $3.37 internationally. This difference highlights the importance of retaining valuable domestic subscribers as the company seeks to expand its streaming service globally, which is extremely costly, as Netflix has learned.
Last year saw a significant decline in the production of US shows, dropping by 24% to 481, compared to the 633 in 2021 and 2022. The decrease in scripted shows released in 2023 was unsurprisingly influenced by simultaneous strikes by Hollywood screenwriters and actors, which halted most productions from May until November.
Serialized content from three of the largest providers comprised nearly 60% of Netflix’s programming in terms of minutes viewed (Disney 19%, NBCUniversal 19%, and WarnerMedia 17%). Additionally, in the United States, only seven of the top 100 most demanded shows in 2022 were Netflix originals.
Netflix is shifting its focus back to licensing third-party shows (“Suits”, “Lucifer”) and films following a decline in original content. This strategic pivot aims to enrich its catalog and retain subscribers by revitalizing forgotten gems and underperforming shows. Despite this shift, Netflix will continue investing in original programming, albeit to a lesser extent than before, as it maintains its dominance in the streaming landscape.
Source: FilmTake
Share:
The Mandalorian Secures $21M Tax Credits for California FilmingThe Silent Challenge of Decaying Movie and TV Show Files in Digital Entertainment
