As Netflix Shifts Focus to International Content, Could Streamer Reduce Number of English-Language Titles?
Streaming is a completely globalized industry now, with major streaming services available in nearly every country in the world at this point; Netflix alone is accessible in 246 countries. And while English-speaking countries like the United States have seen most streaming content catered towards them since the industry’s inception, it seems that this may finally be beginning to change at Netflix, where already more than 50% of the library is international content.
Unlike some services, such as HBO Max, who have been making large cuts to their content libraries in order to lower spending, Netflix’s 2023 plans involve them spending just as much money as it has in the recent past. Instead of changing its content budget, Netflix has publicly stated that it would be changing where that money was allocated to in the coming yars. Instead of spending so much money in American and other English-speaking markets, the service would shift some resources to growing international markets, with South Korea leading the pack.
In the shareholder letter that accompanied the release of the streaming giant’s fourth-quarter 2022 earnings report, Netflix expressed its expectation that, over time, most of the service’s growth would come internationally. It makes sense, in a world where streaming services have already penetrated the vast majority of American households, that the possibility for substantial growth through content that caters to Americans is waning.
Earlier this week, Netflix released the full slate of movies coming to the service in 2023, and while there are a number of exciting projects with big name stars, including Julia Roberts, Idris Elba, Millie Bobby Brown, Chris Hemsworth, and more, the list of films does represent a pullback in number.
As noted by NexTV's Daniel Frankel, the preliminary count for the streamer’s English-language film for 2023 comes in at 45, just three-quarters of the 60 that were announced in 2022. Of course, there could be more films to make it to the service that have yet to be announced, but the decline is certainly notable.
In fact, it stands in stark contrast to the market for Korean streaming titles, which is hotter than ever. Also this week, the service released a list of 34 Korean shows and movies to hit Netflix this year. While obviously still far fewer than the English-language totals, the increase is noticeable, but not surprising. South Korea surpassed the United Kingdom as the country that produces the second-most content for Netflix, still well behind the United States.
The popularity of Korean programming isn’t limited to within South Korea itself, as the success of shows like “The Squid Game” and movies like “Parasite” have shown; over 60% of Netflix's global users watched Korean content in 2022. So, it makes sense that Netflix would follow the money to the markets that have the most opportunities for continued growth, but it also stands to reason that the regions that have essentially reached maturation could see their influence wane a bit.
Inevitably, streaming numbers in South Korea will plateau — just as they seemingly have in the United States. In the future, it will likely behoove Netflix to continue investing more and more in international content, as those markets move towards streaming saturation. Then, as the platform runs out of new customers to acquire in a given market, it has to pivot to keeping them engaged. Obviously, content production will also be vital in those efforts as well, so where Netflix allocates its resources will undoubtedly ebb and flow even more in the coming year.
Netflix is already considered an industry model for international expansion, with even competitors like HBO Max using them as an example for their future worldwide plans. And, in a world where streaming services continue to permeate cultures all around the world, Netflix is sure to continue to adapt to the increasingly globalized streaming landscape.
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.