Netflix: A Global Strategy with Local Impact 🌍

Netflix’s rise as a global streaming giant isn’t just about scale—it’s about its ability to resonate locally. The company’s massive investments in regional productions have driven both subscriber growth and content success. Here’s a breakdown of key figures, trends, and predictions for the future:

Netflix: A Global Strategy Regional Revenue and Subscribers (2023-2024)

• United States/Canada: $14.87 billion in revenue, 84.8 million subscribers, ARPU $17.06

• Europe, Middle East, Africa (EMEA): $10.55 billion in revenue, 96.13 million subscribers, ARPU $10.99

• Latin America: $4.44 billion in revenue, 49.18 million subscribers, ARPU $8.40

• Asia-Pacific: $3.76 billion in revenue, 52.6 million subscribers, ARPU $7.31

• United Kingdom: £1.7 billion ($2.1 billion) in revenue, 17.3 million households, ARPU £8.19/month ($10.35)

Netflix: A Global Strategy Regional Production Investments

• Global: $13 billion in 2023, $17 billion projected in 2024. Over 50% of spending is outside North America, with Europe receiving ~35%.

• United Kingdom: $6 billion (2020-2023). Local hits include The Crown and Sex Education, employing 30,000+ in production roles.

• South Korea: $2.5 billion (2023-2027). Major success with Squid Game and continued focus on K-content.

• Spain: $400 million (2020-2023). Hits like La Casa de Papel and Élite showcase Netflix’s Spanish storytelling prowess.

• Mexico: $300 million in the last three years. Over 50 original productions cementing Netflix’s dominance in the region.

• Colombia: $175 million since 2014. More than 25 original titles produced; Bogotá office established in 2021.

• European Union: Production has increased to meet the 30% local content quota, with Lupin (France) and The Crown (UK) leading the charge.

NB, it is worth noting that the BBC has an income (not a production spend) but income from the licence fee totalling £3.66b. While this has remained stable and is a point of envy for those operating in more volatile economic markets, the sum invested in production is insignificant compared to Netfix. One wonders how it can compete and for how long.

Trends and Predictions for Netflix

1. Subscriber Growth Plateauing in Mature Markets:

Regions like the US, Canada, and the UK are seeing a slowdown in subscriber growth due to market saturation. However, ARPU remains high, contributing significantly to revenue.

2. Emerging Markets as Growth Drivers:

Asia-Pacific and Latin America will continue to drive subscriber growth as Netflix invests in affordable mobile plans and localized content to cater to these audiences. Expect aggressive growth in markets like India, Indonesia, and Brazil.

3. Increased Local Productions:

Content quotas (e.g., Europe’s 30% local content rule) and rising demand for culturally specific stories will push Netflix to invest even more in regional production hubs. South Korea, India, and Spain will likely see major increases in budgets.

4. Shift to Franchise Building:

Following the success of The Witcher, Stranger Things, and Squid Game, Netflix is likely to focus on building global franchises that can fuel spin-offs, merchandise, and multi-format storytelling.

5. Challenges Ahead:

• Rising Competition: With Disney+, Amazon Prime, and local players ramping up, maintaining dominance will require smarter pricing strategies.

• Profitability Push: Investors expect better cost management, meaning some regional content investments could slow unless high ROI is guaranteed.

6. Future ARPU Growth Opportunities:

Ad-supported tiers and password-sharing crackdowns are helping Netflix monetize better in regions with lower ARPU, like Latin America and Asia.

Conclusion

Netflix’s ability to balance global appeal with local resonance is what sets it apart. While mature markets stabilize, the company’s bets on emerging markets and franchise building will shape its next decade.

📈 Prediction: Expect subscriber numbers to hit 300 million globally by 2027, with over 60% of revenue coming from outside North America. Investments in local production will cross $20 billion annually by 2026, as Netflix solidifies its role as the world’s leading content creator.

Postscript: My Thoughts on the Perfect Storm

The audience has globalized. A show made in Asia today, like Squid Game, travels the globe effortlessly, reaching an audience far larger than shows from a decade ago. But this shift comes at a cost: fewer shows are being made overall, contributing to the dire plight of creatives worldwide.

There are simply not enough projects to support the workforce. Rival streamers operate on similar business models, and local broadcasters have seen their incomes decimated by VOD platforms. It’s a perfect storm.

For the consumer, there’s incredible content—Black Doves, Slow Horses, The Day of the Jackal, Squid Game, The Heist, to name a few. But the price is the decline of low- and mid-budget series, which once sustained the creative workforce.

Reality TV is making strides on streaming platforms, but it’s still far from the volume we saw on network television.

What’s next? Can the industry balance quality and quantity to support both consumers and creatives?

Let’s discuss.

Jonathan Glazier

Consultant | Media Specialist

#Netflix #Streaming #GlobalStrategy #LocalContent #CreativeEconomy #SubscriberGrowth #PerfectStorm