Report: Netflix ramps up local content production

Netflix is aggressively ramping up global productions, particularly in Europe and Asia according to a report from Ampere Analysis. Netflix has seen impressive growth in these markets, adding eight and nine million subscribers respectively between 2017 and 2018. Hoping to replicate the success of hits such as Dark from Germany and Sacred Games(pictured) from India, Netflix announced 24 new titles for Europe in Q4 2018 – that’s equivalent to the total for the region in 2017 and represents 22 per cent of the upcoming catalogue.

Netflix and the giant Dahl catalogue

Netflix has said it will increase the number of European titles it produces by another third during 2019, having delivered 141 projects including recommissions in 2018. The streaming service also announced a major rights deal with the Roald Dahl Company, with ambitions to produce a vast ‘Dahl Universe’ of children’s titles.

International productions are a double whammy for Netflix

Netflix’s investment in localised foreign language content not only maintains subscriber growth, it helps fight domestic competition by captivating users with high-quality international productions. The success of series such as Elite,Narcos and Sacred Games with both native and English language audiences illustrate how international productions can deliver a double whammy for the service. Thirty-six per cent of Netflix’s upcoming originals will be non-English, and 46 per cent will originate from outside the US and Canada.

Netflix is currently producing new content in 25 countries, with 133 titles originating outside of North America, including its first African title. It is heavily focused on specific markets, with the top two international producers of the UK and India accounting for 32 per cent of international productions, and the top five accounting for 56 per cent. Additionally, it is rapidly increasing production in key markets across Asia and Europe, particularly those that have created hit shows for the streaming service in the past. The UK has added 10 titles so far in Q4 2018, India eight, Germany six, and five each in Japan and Spain.

Central and South America misses out in Q4

  • Central and South American productions represent 9 per cent of the entire upcoming Netflix slate, but have only accounted for 5 per cent of the slate in the fourth quarter of 2018
  • So, although the region is home to hits Narcos and 3 per cent, only five titles from South America have been announced for the last quarter of 2018
  • With Mexico currently considering a similar quota policy to that of the EU, Netflix may need to review its strategy in Latin America in the future

read more here: advanced-television.com

W Europe OTT revenues $23bn+ in 2023

Western European OTT TV episode and movie revenues will reach $23.02 billion (€19.93bn) in 2023; more than double the $9.84 billion recorded in 2017, according to the Western Europe OTT TV & Video Forecasts report from Digital TV Research. Revenues for 18 countries covered by the report are expected to climb by $2.63 billion in 2018 alone.

“The UK is the largest OTT revenue earner in the region by some distance,” advised Simon Murray, Principal Analyst at Digital TV Research. “Its $2.98 billion generated 30 per cent of the 2017 total. The UK’s $6.80 billion in 2023 will represent a similar proportion.”

SVoD became the region’s largest OTT revenue source in 2016 by overtaking AVoD. SVoD’s share of the total will reach 54 per cent by 2023, up from 45 per cent in 2017.

SVoD revenues will almost triple by reaching $12.47 billion in 2023 – up from $4.44 billion in 2017. The UK will remain the SVoD revenue leader by some distance – generating as much as second-placed Germany and third-placed France combined by 2023.

The Western Europe OTT TV & Video Forecasts report estimates 98.85 million SVoD subscribers by 2023, up from 50.34 million at end-2017. Nearly 15 million subscribers will be added in 2018 alone, with 11 million more expected in 2019.

By 2023, 69.3 per cent of Western European TV households will subscribe to an SVoD platform; up from 38.4 per cent at end-2017. [Gross subscriptions. If a household takes two subscriptions then it is counted as two subscribers]. Norway will have the highest proportion at 104.8 per cent by 2023. Germany, Italy, France and Spain will all fall below the regional average by 2023.

Netflix will remain the largest SVoD platform by some distance, with 49.75 million paying subscribers in 2023 – or half of the region’s total. This is the same as the 2017 proportion. The 2023 total includes 22 million Amazon Prime Video subscribers.

read more here: advanced-television.com