Its emerged that markets, where Netflix is planning to increase the amount of its Netflix Originals, have a smaller discount on the streamer’s new ad-funded tier.
The correlation, discovered by Ampere Analysis, follows a period when Netflix made increasing efforts in commissioning international titles. In the third quarter, the amount of non-English language content reached 48%, rising to 61% in Scripted Netflix Originals.
“Given this push into non-English-language Scripted content it’s understandable Netflix is less inclined to offer high rates of discount for its new ad-supported tier service in markets where it has made a significant investment,” said Ampere’s Olivia Deane. “Although some non-English-language titles have found international success (such as Squid Game, Lupin, or La Casa de Papal), there is a risk that localised content will struggle to find wider appeal beyond its home market.”
In Japan, where the discount rate is the lowest, and the volume of local Originals is the highest, most upcoming content is Scripted (92%), focusing on Sci-Fi & Fantasy.
Deane explains that although Netflix’s increase in Japanese Anime is likely to attract local consumers – Anime was the favourite genre of Japanese SVOD viewers in Q3 2022 – the genre has limited international appeal.