In at least the third instance of Netflix investing abroad in the last couple of weeks, the streaming giant announced on Monday that it has opened an office in Rome as it aims to expand its local-language content around the globe. This comes after the company made a multi-film deal with Japanese studio Colorido at the end of April and partnered with the Kenyan government on May 4 to produce three Kenyan films.
Netflix’s increased investment in international content is conspicuous following recent subscriber losses that have led to high-profile budget cuts and show cancellations. In the wake of crackdowns on password sharing and an ad-supported subscription tier being introduced this year, the company must also look to other countries to expand its reach.
The Asia-Pacific region was one of the lone bright spots in subscriber growth in an otherwise dismal first-quarter earnings report for Netlfix. The news of the deal with Colorido was not surprising, considering that Netflix’s investment in additional anime offerings could considerably grow its business in Asia and around the world. After dominating the U.S. streaming industry for so many years, Netflix has essentially saturated the market and must now look at expanding into new regions.
The deal with Colorido will not only be beneficial for expansion in Asia but also for adding content to the streamer’s anime library, which is increasingly popular around the world. Netflix’s Anime Creative Director Kohei Obara recently revealed that more than half of the streamer's worldwide subscribers watched anime content in 2021. This further cements the company’s plans to offer content well-received on a global level.
“The breadth and variety of our Italian slate perfectly represents our ambitions,” Netflix Co-CEO Reed Hastings said, “new series, films, documentaries, and unscripted shows from Italy’s most prestigious creatives and exciting new voices. Stories that are Made in Italy and watched by the world.”
“Watched by the world” is the key. In the final quarter of 2021, Netflix only added 1.19 million subscribers in the United States and Canada but added 3.54 million new accounts in the Europe, Middle East, and African markets and 2.58 million in the Asia-Pacific region; further underlining the need for expansion around the world.
Amid reports of investments abroad, canceled content, and a reworking of its subscription offerings, Netflix is going through a complete overhaul of its business. The company has more than dominated the domestic market since transitioning from DVD rentals to streaming, but its recent disappointments have kicked its global aspirations into overdrive.
The company pioneered the streaming industry, but now it may need to make some changes if it’s going to keep up with its competitors. While Netflix is trying to continue growth at home by introducing a lower-priced tier and encouraging users to subscribe to their own accounts rather than sharing, it is clearly also increasing its focus abroad. This attention on growing international subscriber totals will increase the variety of the streamer’s content worldwide, theoretically providing a win-win situation for everybody.
Netflix
Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.