Netflix, according to a recent projection by Ampere Analysis, more than half of the company's content budget this year, that is $7,9 billion of a total of about $15,4 billion, will be invested in productions made outside North America.
Netflix thus makes a major change, being the first time that the majority of the streaming giant's budget is allocated to original content localized for international markets or the licensing of internationally produced titles. This trend fits in with the broader TV industry as media companies reevaluate their content strategies for the post-peak TV era.
Netflix isn't the only company changing its strategies, as another Ampere study predicts that content spending in North America will decline by more than 20% from 2022 levels over the next five years. The reasons for this change are multiple: on the one hand, international content is cheaper, on the other hand, the US audience has become more open in recent years to content in foreign languages.
Netflix Confirms an UNPRECEDENTED Decision Due to the Current Global Situation
Netflix's Korean series Squid Game remains a case in point, becoming one of the most-watched titles ever on a budget of around $21 million – less than 10% of the reported production cost for Season 4 of "Stranger Things."
The maturity of the US streaming market is pushing platforms like Netflix to invest more in local content for less saturated regions. As it becomes increasingly difficult to add new subscribers to domestic streaming video on demand (SVOD) services, companies recognize that future growth will need to be fueled by emerging streaming markets, where established US players have a less dominance.
Netflix has big problems with competition in Africa, one of the few areas in the world where there is a situation like this. Another market is India, a fast-growing economic and cultural powerhouse where Netflix has invested aggressively to grow its subscriber base. It wouldn't be surprising to see the next 'Squid Game' come out of India in the coming years, marking yet another important step in Netflix's global strategy to captivate audiences around the world.
