Source: www.mediaplaynews.com, June 2023

Original content has become of even greater strategic importance to Netflix as it builds its worldwide footprint and faces competition from the owners of the biggest content catalogs in the world (major studios) and deeply entrenched local players in the U.K. and Nordics, among other regions.

New Omdia data from PlumResearch finds that the importance of original content varies by market. Netflix ended its most recent fiscal period with more than 232 million subscribers across more than 190 countries.

In the U.S., 35.6% of total hours watched in the first three months of 2023 were Netflix originals. The SVOD pioneer’s home country was its biggest market, with a total of 14.8 billion hours streamed in the first quarter, ended March 31. Originals also accounted for the largest share of total hours streamed  in Poland – just under 40%, and Spain at more than 35%. At the other end of the scale were Japan (20.6%) and South Korea (25.4%).

At the same time, original Korean content has become a goldmine for Netflix worldwide following the success of “Squid Game” and other locally-produced programs. The streamer recently announced plans to invest more than $2.5 billion in original Korean content to be distributed globally.

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Although these percentages appear to be low, considering the massive investments Netflix has made in original content, Omdia estimates that last year the vast majority of Netflix originals were produced in the U.S.: 403 titles out of a total 935 titles launched in 2022.

The analysis of viewing of local originals (i.e., content produced in the country in question) offers a noticeably different perspective of the streamer’s success with local production. Out of all original hours watched in South Korea, local titles accounted for nearly 68%. The U.S. also had a high percentage of 61.4%, and both countries were very far ahead of the next placed country, Japan. Viewing of German originals in Germany was just 2.7%.

“Given its increasing emphasis on originals and heavy investment, the share of viewing actually going to these titles seems surprisingly low,” Tim Westcott, senior principal at Omdia, said in a statement.

Westcott suggests the reasons for this could include the continuing strong performance of certain non-original content, especially theatrical movies, but also some TV series that have been acquired by Netflix.

For example, the Harry Potter movies and TV series like “Brooklyn Nine-Nine” and “Rick and Morty” feature among the top titles in other countries such as Italy and Germany.

“Another reason [for lower interest in original content in some markets] is the depth of catalog: Netflix has been originating since 2012, but still does not have the volume of Walt Disney, Warner Bros. Discovery or Paramount Pictures,” Westcott said.

Indeed, while Disney and Warner Bros. Pictures celebrate centennials this year, Paramount turned 100 in 2012.