Netflix
Germany, India, Korea, Spain, Thailand grow in streaming originals mix by Ampere analysis
According to research and consulting firm Ampere Analysis, Netflix and Amazon returned to dominance in original content worldwide in the first quarter of this year.
The pair have been challenged in recent years by the launch of studio-backed streaming platforms, but studio players have been reduced by Hollywood strikes, rising costs and pressure from Wall Street to prove they can grow profitably.
Ampere said Netflix ordered its highest number of new titles since the third quarter of 2021 and that Amazon set a new record for quarterly commissions. These two streaming giants accounted for more than half (53%) of global streamer commissions from January to March 2024.
The report also showed that both Netflix and Amazon now order “the majority of their titles from outside the US” due to the saturation of the US market and in line with their strategy to reach local markets through local content. And the research firm predicted that trend would continue.
Netflix’s launch growth has focused mainly on Western European and Asia-Pacific titles. “In the first quarter of 2024, Netflix’s Western European commissions almost reached parity with North American titles for the first time,” Ampere said. “Netflix is seizing opportunities for international growth, targeting proven portable content providers such as Spain, India and South Korea.”
Cost-effective unscripted content featured heavily in the platform’s Western European commissions, with documentaries accounting for 30% of regional orders, up from 23% last year.
In Asia, Thailand saw the biggest individual increase with nine titles ordered in Q1 2024. Crime and thriller content was a focus in India, which Ampere says will become Netflix’s biggest subscriber hub in the region.
In terms of subscriber numbers, Netflix lags behind several Indian streaming players, but is priced higher. And Ampere says it’s trying to compete more with Amazon in the country.
“Netflix has increasingly relied on pay-one deals with theatrical studios to supply new, exclusive US films and has reduced the number of original film launches. [U.S.] movies. In contrast, it has increased its international film orders in territories such as the Nordic countries, Asia Pacific and sub-Saharan Africa,” said Ampere.
Amazon is particularly focused on India. In the first quarter of 2024, Amazon ordered a record 37 titles in India.
“Global streamers, including Amazon, have previously tried to compete with local players who offer strong regional content. However, this total signals Amazon’s intent to take over existing platforms and cement India as a cornerstone of its international strategy,” said Ampere.
Amazon also announced its largest slate of Indian originals to date and is actively pursuing pay-per-view and co-financing deals. [Indian] theatrical distributors. Amazon’s original order of films was generally boosted by the takeover of the MGM studio two years ago. The numbers were overtaken by Netflix for the first time in the second quarter of 2023.
Germany, where Amazon leads Netflix in terms of local subscribers, was the biggest winner in Western European commissions with 13 content orders in the first quarter of 2024.
“Market saturation in North America, rising production costs and the lingering impact of Hollywood strikes have prompted Netflix and Amazon to increase investment in international production to stimulate subscriber growth. While several studio-backed SVoDs have made cuts internationally, the two streaming giants are doubling down on their localized global strategy,” said Mariana Enriquez Denton Bustinza, Chief Research Officer at Ampere.
But she also tried to distinguish between their strategies. “For Netflix, this means catering to a broad subscriber base while tapping into the markets whose productions offer the greatest potential for crossover appeal. Amazon’s approach remains more focused on key markets such as India, while using its global position to further expand into the theater market to generate downstream revenue from its platforms.
Not mentioned in Ampere’s report: Amazon also claims mutual benefits from online entertainment and home shopping, or the “flywheel effect,” in those markets where it operates shopping membership plans.