Media streaming juggernaut Netflix (NASDAQ: NFLX) proved its mettle as it deftly navigated the storm of Hollywood strikes that swept through the entertainment industry last year. Unlike many of its counterparts, Netflix’s sprawling global production web shielded it from the tumultuous effects of strikes and filming disruptions in any specific location.
Exploring the Data Landscape
My working hypothesis centered around Netflix’s robust lineup featuring a significant number of foreign productions following the resolutions of strikes by the Writers’ Guild and Screen Actors’ Guild. However, a hypothesis without data is akin to a screen devoid of actors – merely fanciful conjecture. With limited access to exclusive data troves, I delved into publicly available information to draw insights.
My investigation focused on analyzing the composition of Netflix’s top-10 lists, inspecting the prevalence of original international productions within them, both presently and a year prior. While the results yielded some surprises, they lent credence to my original hypothesis.
Insights from Netflix’s Content Landscape
Serial content holds greater sway at Netflix compared to movies, engaging viewers for extended durations. Notably, the latest Nielsen Media rankings feature nine streaming series among the top ten, with a lone streaming movie holding the seventh spot.
The current roster boasted ten authentic Netflix originals, completely devoid of licensed titles from external studios or rehashed classics. Although familiar shows like “Formula 1: Drive to Survive” and “Love Is Blind” made appearances, the lineup predominantly comprised fresh Netflix content, including the exclusive live-stream of the Screen Actors Guild Awards since 2023.
Amidst the top-ranking shows, only three were domestically produced, with varied global origins enriching the remaining content. Notably, titles like “Avatar: The Last Airbender” and “Resident Alien” found their filming homes in Canada, while productions like “One Day” and “Can I Tell You a Secret?” hailed from British soil. The diverse range extends further with “Warrior” filmed in South Africa, “Formula 1” spanning multiple international locations, and “The Tourist” immersing itself in the Australian landscape.
Despite the industry upheaval post-strikes, the composition of Netflix’s lineup remained relatively unaltered when compared to the same period in 2023, reinforcing the company’s steadfast production strategy that extensively leverages overseas filming locations.
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Netflix’s Resilience and Competitive Edge
Netflix’s pervasive dominance in Nielsen ratings transcends the tumult of Hollywood strikes, bolstered by unrivaled production budgets and a knack for fostering collaboration with independent creators. The underlying strength of Netflix lies in its unique global production architecture, exemplified by successful ventures in locales like South Korea, Spain, and Canada, each contributing blockbusters like “Squid Game,” “Money Heist,” and “Anne With an E,” respectively.
This inherent flexibility enables Netflix to recalibrate its production timelines based on cost dynamics, talent availability, and evolving global trends. Initially surprised by the global resonance of local productions, Netflix now champions boundary-defying hits as a cornerstone of its content strategy.
Hence, international production stands as a pivotal component in Netflix’s diverse toolkit of competitive advantages, heralding a narrative of sustained global expansion. In my investment portfolio for 2024, Netflix retains its position as the standout cornerstone.
