Netflix and Prime Video Are Investing More in Streaming Content as Global Strategies Shift to Forefront
Viewers in the United States won’t stop seeing domestic productions on streaming, but international audiences provide more opportunity for growth.
Where in the world is your favorite streaming service headed next? Streamers are looking for new audiences and diverse marketplaces to launch their platforms in as market penetration in the United States has reached its zenith, and each is seemingly trying a different strategy for international expansion. New data from Ampere Analysis shows that Netflix and Prime Video are dominating global streaming commissions currently, accounting for 53% of total worldwide commissions in the first quarter of 2024.
Key Details:
- Amazon and Netflix have commissioned nearly 350 new shows and movies in Q1.
- Netflix is focused on Western European and Asian Pacific audiences and has seen domestic movie commissions drop.
- Prime Video is zeroed in on India, despite the struggles of other services to compete with local services.
The data from Ampere shows that in the first quarter of 2024 alone, Netflix has commissioned around 200 new shows and movies globally. Prime Video is the next-closest and has around 140 new commissions to its name in the same time frame.
No other streaming provider climbed over 100 commissions in the same time frame, with Disney topping out at around 50 and Warner Bros. Discovery slotting in next with even fewer. This is another data point to show that many streaming service owners are still grappling with the shift from linear to digital, and content spends are plummeting as services try to become profitable. This has also led to a considerable dip in the output of streaming originals so far in 2024.
Click on image to expand.
Where Are Netflix, Prime Video Focusing Their Efforts?
The decline in commissions from more cost-focused streaming services has allowed Netflix and Prime Video to claim 53% of all commissions ordered in the first quarter. The numbers mean the two streamers will stay ahead of the competition in terms of global output for months to come, though customers in the United States may not see as much of a difference, as many of these new commissions are for international shows. Indeed, both Netflix and Prime Video are seeing the vast majority of new streaming commissions originate outside the U.S. these days.
Click on image to expand.
For Netflix, the focus is on the Western Europe and Asia Pacific regions currently. In fact, commissions in Western Europe nearly reached the same level as North American show and movie orders for the first time in Q1. Thailand saw nine original titles ordered in the first quarter, while new Netflix movie commissions in the United States has dropped in favor of films pulled from licensing deals with studios like Sony and Universal.
Prime Video has its eyes on India, as a presentation for the streamer this spring which announced the creation of nearly 70 new India-produced titles made clear. India’s population of nearly 1.5 billion people makes it an attractive market for outside streaming services, but many have struggled to overtake local services in terms of popularity. Earlier this year, Disney sold a majority stake in its Star operations in India, as losing streaming rights for India Premier League cricket caused massive subscriber defections from Disney+ in that country.
“The market saturation in North America, the growing cost of production, and the lingering impact of the Hollywood strikes have pushed Netflix and Amazon to increase investment in international productions to stimulate subscriber growth,” said Ampere researcher Mariana Enriquez Denton Bustinza. “While several studio-backed [streaming services] have made cutbacks internationally, these two streaming giants are doubling down on their localized global strategy.
“For Netflix, this means catering to a broad subscriber base while leaning on markets whose productions offer the greatest potential for crossover appeal,” Bustinza continued. “Meanwhile, Amazon’s approach remains more heavily targeted towards key markets such as India, while it leverages its global position to expand further into the theatrical market to generate downstream revenues from its platforms.”
Amazon Prime Video
Amazon Prime Video is a subscription video streaming service that includes on-demand access to 10,000+ movies, TV shows, and Prime Originals like “The Lord of the Rings: The Rings of Power,” “Jack Ryan,” “The Marvelous Mrs. Maisel,” “The Boys,” and more. Subscribers can also add third-party services like Max, Showtime, STARZ, and dozens more with Amazon Prime Video Channels. Prime Video also offers exclusive live access to NFL Thursday Night Football.