A recent study confirms that the two streaming giants will account for 53% of SVOD (Subscription video on demand) players’ original titles in the first quarter of 2024: the sector is becoming dynamic and above all international compared to the usual dominance of US productions
Netflix and Amazon are returning to dominate the on-demand content market after a slowdown in recent years, mainly due to competition from other studios-backed SVOD platforms. In Q1 2024, Netflix commissioned the highest number of new titles since Q3 2021, and Amazon also set new records.
The upswing, according to Ampere Analysis experts, coincides with the decline in original productions by other streamers forced to monitor costs more closely. Equally important is the pull of international investment: Netflix and Amazon commission most of their original titles outside the United States. Over the past few years, foreign spending by both portals has increased significantly and will continue to do so, to combat the stalemate of domestic subscriptions and expand their reach around the world.
Not surprisingly, Netflix’s commission growth is driven by Western European and Asia-Pacific stocks. The platform is mainly focusing on proven content providers in Spain, India and South Korea. Mariana Enriquez Denton Bustinza, Senior Researcher at Ampere Analysis, said: “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. While several studio-backed SVODs have made cutbacks internationally, these two streaming giants are doubling down on their localised global strategy”.
Streamers vs. broadcasters
Another report by Ampere Analysis, reported by cineuropa.org, confirms that European investments by SVOD players are set to overtake those of broadcasters in the five largest European markets (Great Britain, Germany, France, Spain and Italy), reaching EUR 10 billion in 2024, to be compared to the total EUR 8 billion invested by broadcasters in 2023.
The large platforms, including Netflix, Disney and Warner Bros Discovery, however, have left and will leave market shares that represent an opportunity for broadcasters to seize with maximum responsiveness. Bolder commissioning decisions will be needed, which will also boost consumer engagement and advertising revenues. In fact, the strategy requires technological investments in video-on-demand platforms, expansion of content libraries, enhancement of digital marketing, and adaptation of content to a younger target audience.
