Ampere Analysis: Netflix Bets Big on International Commissions

Netflix commissioned new original first-run TV or movie content from 28 different markets in the second quarter, beating its own record, according to a new report by Ampere Analysis.

Netflix has commissioned new content from 44 territories since the start of 2020, putting it far ahead of rivals: Warner Bros. Discovery’s SVOD platforms (HBO Max and discovery+) managed content from 27 territories over the period, Disney 23 and Amazon 21.

This reflects the increasing importance of the international audience to the company’s continued growth, says Ampere. The report states that international diversity gives Netflix a two-pronged path to growth. Firstly, by opening up new markets with the offer of localized originals to lure new subscribers. Secondly, by presenting a key point of difference to rivals in the U.S. and globally through the availability of a broad range of international content.

Fred Black, research manager at Ampere, said: “At a time where Netflix is feeling the pinch of successive quarterly subscriber losses, a recommitment to an international strategy allows the company to exploit one area where it still possesses an inherent advantage over studio-backed rivals. Disney+ or HBO Max may well make the next Stranger Things or The Witcher but are yet to show themselves capable of the next Money Heist or Squid Game.”

Netflix’s international commissions have outranked home-grown content for seven straight quarters. Netflix commissioned 22 more U.S. originals in the first half of 2022 than in H1 2019; however, this accounted for 27 percent of total SVOD commissions in the U.S., compared to 46 percent in H1 2019.

Black concluded: “It’s in the context of intense competition at home that Netflix’s refocus on international originals makes the most sense. Since the start of 2020, the streaming giant has commissioned 664 American first-run TV or movie originals. That’s still 50 percent more than the combined effort of discovery+ and HBO Max, twice as many as Disney+ and Hulu could muster, and three times more than Amazon. However, internationally Netflix commissioned 814 titles over the same period—2.3 times as many as Amazon, 2.4 times as many as Warner Bros. Discovery, and three times as many as Disney’s suite of international streaming services. In fact, Netflix has commissioned more non-U.S. originals over the period than its key rivals combined. Opening up new markets for originals and doubling down on the content from its most successful will be key to Netflix finding subscriber growth again.”