Streaming Entertainment News

Streaming Giants Netflix and Amazon Expand Global Reach

The landscape of streaming services is evolving, and it appears that the era of “Peak TV” may be experiencing a resurgence, particularly outside the United States. This resurgence can be largely attributed to industry giants like Amazon and Netflix, which have been instrumental in reshaping the global streaming market.

Recent data from Ampere Analysis reveals that during the first quarter of 2024, Amazon and Netflix collectively accounted for over half (53 percent) of all film and TV titles commissioned for SVOD streaming worldwide. Netflix, in particular, significantly ramped up its series orders, marking a substantial increase fueled by its heightened investments in international territories. Similarly, Amazon’s focus has shifted towards international markets, with a majority of its commissions originating from outside the U.S.

The rationale behind this international push lies in the fact that both Netflix and Amazon have saturated the U.S. market, leaving limited room for further growth. By expanding globally, these streaming giants can capitalize on cost-effective production opportunities and untapped markets, thereby bolstering their subscriber bases and enhancing content offerings.

Looking ahead, Ampere Analysis predicts a continued uptrend in spending outside the U.S. for both streaming platforms. In Western Europe, Netflix has made significant strides by ordering a comparable number of shows to its North American counterparts for the first time. Countries like Spain, the UK, and Germany have emerged as key hubs for content production, particularly in the realm of unscripted and documentary content.

The documentary genre, in particular, has witnessed a surge in popularity, with Netflix increasing its focus on this category in Western Europe. Despite the UK’s historical dominance in documentary production, other regions are now contributing significantly to the genre’s growth. Unscripted content offers a cost-effective alternative to scripted programming, making it an attractive option for streaming platforms.

Amazon’s dominance in Germany is evident, with a notable increase in commissions within the region. Both Amazon and Netflix have expanded their international film portfolios, with Netflix targeting regions like the Nordics, Asia Pacific, and Sub-Saharan Africa. India, in particular, has emerged as a battleground for streaming supremacy, with Amazon outpacing Netflix in content orders.

However, the financial aspect remains a challenge, as highlighted by the significant variance in average revenue per member between regions. While subscriber acquisition may be easier in certain markets, monetizing these subscriptions poses a unique set of challenges, particularly in regions with lower average revenue per user.

As the global streaming landscape continues to evolve, Amazon and Netflix’s strategic focus on international expansion is poised to shape the future of content consumption and production on a global scale.