Report: Netflix plans $1.2B spend to produce local content in select foreign markets

February 11, 2016 | By More

Netflix, seeking to cement its toehold in its rapidly expanding international market, is expected to spend as much as $1.2 billion on original content in the United Kingdom, France, Italy and Spain, according to published reports.

Netflix International

The company has publicly said it plans to spend $5 billion on content production and acquisition in 2016.

Researcher Ampere Analysis said the company will produce a number of “high-value” series for those markets, something CEO Reed Hastings and Chief Content Officer Ted Sarandos alluded to in the company’s Q4 2015 earnings call in January.

The Hollywood Reporter this week noted that Netflix’s international push begins Feb. 19 with the release in China of the sequel to Crouching Tiger, Hidden Dragon. Also due out soon is the much-anticipated historical drama that focuses on the British royal family, The Crown, Italian crime drama Suburra, and French political drama Marseille.

Also in store: Feature film Okja, being developed in South Korea; 3%, a Brazilian sci-fi series; Mexican dramedy Club de Cuervos, and a Japanese coming-of-age tale.

“In key markets — U.K., France, Italy, Spain, Mexico — you will start to see focus on high-value TV series, especially ones with a strong global appeal,” Ampere analyst Guy Bisson said.

In Q4, nearly three quarters (72%) of new subscribers to Netflix came from its international business, some 4.04 million subs. The company expects Q1 to see similar results, with 71% of its forecast 6.1 million subscriber adds being from international markets, about 4.35 million.

Ampere, in a recent blog post, said local content was critical to SVOD catalogs, with between 15% and 20% of all movies in Western European markets being locally focused. Content from the U.S. makes up between 40% and 50% of movie catalogs in foreign markets, except in the United Kingdom, where the percentage of U.S. content is significantly higher.

Netflix and Prime Instant Video, Ampere said, typically are dominated by U.S. content.

Stay tuned.

Follow me on Twitter @JimONeillMedia and on LinkedIn

Share post with friends

  • Facebook
  • Twitter
  • LinkedIn
  • Google Plus
  • Email

Tags: , , , ,

Category: COLUMNS

Jim ONeill

About the Author ()

Jim O’Neill has been a business journalist since 1992, and has been writing about the digital media industry since 2007. He formerly was the editor of industry journals FierceIPTV and FierceOnlineVideo, and has worked as an industry analyst for international research firm Parks Associates. He currently is CEO and Editor of theConvergence.tv, a newsletter that takes a deeper look at the trends and happenings in the digital media industry, and continues writing research and white papers on a variety of topics in the sector. He can be reached at jim@theconvergence.tv

Comments are closed.