Poland is one market in which Netflix is likely to increase its content as its focus of activity becomes more global than ever.
A new Ampere Analysis report shows that between Q4 2019 and Q3 2020, North American commissions accounted for 55% of Netflix Original titles, but this share fell to 45% between Q4 2020 and Q3 2021—despite the fact that North American commissions increased in volume— as Netflix continued to grow investment internationally.
It adds that comparing the link between Netflix’s subscriber base and catalogue of local titles illustrates where the streamer has an opportunity to expand local libraries to better service existing subscribers and attract new customers. Markets in which Netflix is underweight for local original content include Poland and Turkey, and in these countries, localisation is indeed already underway.
Markets localised in the last three to four years, such as South Korea, Mexico, and South America, display a common formula in local content acquisition and Original projects. First, an acceleration in the acquisition of third-party titles, small trials of local commissions and then a wider rollout of original local production. This wider rollout begins with a high proportion of movie commissions and is then followed by a regular flow of TV-focused activity, which is key for driving subscriber retention. After 24 months, a second surge in commissions takes place. This repeating pattern allows Ampere to predict where and when Netflix’s local original content investment is likely to increase.
Poland offers Netflix a comparable market size to some secondary Latin America and Western European territories, and indeed Netflix has recently expanded the volume of local third-party titles on offer in the territory. There is now further opportunity for the company to expand its Polish-origin library to better serve existing subscribers and to attract new customers.
