Netflix, the seasoned player in media streaming, outmaneuvered the Hollywood strikes of yesteryear with finesse, thanks to the strategic advantage of its expansive global production network. This network, by design, renders Netflix relatively impervious to disruptions caused by strikes or filming slowdowns in any specific locale.
In Pursuit of Key Insights
My initial premise was simple: Netflix’s current content lineup should be teeming with foreign productions post the Writers’ Guild and Screen Actors’ Guild strikes. However, unfounded hypotheses are akin to movies devoid of actors—an empty spectacle. Lacking access to copious data and a team of analysts, I dived into the best publicly available information at hand.
Delving further, I scrutinized the prevalence of true originals in Netflix’s top-10 lists of movies and shows, breaking down the ratio of foreign-produced titles in the current rankings vis-à-vis their counterparts from a year past. While the findings defied some expectations, they lent credence to the initial thesis.
Discoveries from Netflix’s Content Landscape
Within Netflix’s realm, series trump movies in significance. Serial narratives captivate audiences over extended durations, be it through binge-watching or more measured consumption. Notably, the top-ranked streaming movie, per Nielsen Media’s latest ranking, holds the seventh spot overall, surrounded by nine streaming series.
The current top 10 shows comprise entirely of genuine Netflix creations, devoid of licensed content or rehashed classics. While sequels of enduring series like Formula 1: Drive to Survive and Love Is Blind persist, alongside novel additions such as the Screen Actors Guild Awards, all offerings are freshly minted Netflix originals.
Lamenting from Hollywood is minimal, as merely three of the present leading shows were filmed on U.S. soil, including the SAG Awards. Notable titles like Avatar: The Last Airbender and Resident Alien hailed from Canada, while British productions like One Day and Can I Tell You a Secret? graced the screens. Formula 1 globe-trots amidst various race tracks, and The Tourist is shrouded in Australian ambiance.
Diminishing the need for strategic overhaul in the aftermath of labor strikes, the post-2023 landscape closely mirrored the pre-strike scenario. With minimal American productions in the limelight, Netflix’s filming strategy remained largely unaltered, characterized by a preference for foreign locales over Hollywood’s traditional sound stages.
Image source: Getty Images.
An Additional Argument for Netflix Ownership
Netflix’s stronghold in the Nielsen ratings persists, irrespective of Hollywood’s labor landscape. Renowned for its substantial production budgets and a knack for nurturing independent talent, Netflix’s key to ratings success lies in these attributes.
The company’s versatility in production, boasting successful nodes in regions like South Korea (Squid Game, Extraordinary Attorney Woo), Spain (Money Heist, Elite), and Canada (Anne With an E, Kim’s Convenience), allows it to pivot effectively based on variable costs, talent availability, and prevailing global trends. The seamless migration of local hits across international borders underscores Netflix’s prowess in engaging diverse audiences worldwide.
Hence, international production stands as another powerful tool in Netflix’s burgeoning arsenal. As the saga of global expansion unfolds, Netflix remains a cornerstone of stability in my investment portfolio for 2024.
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Anders Bylund holds positions in Netflix. The Motley Fool holds and recommends Netflix. The Motley Fool abides by a disclosure policy.