The plans of Netflix Inc. to expand its international content offerings in order to boost subscriber growth, which is slowing down, was apparently supported by investors because of the huge success of the South Korean dystopian drama series “Squid Game” that was streamed on the platform.
Within just 27 days of being released, the drama series “Squid Game” gained as much as 111 million fan base, which has made this low-cost survival drama to become the biggest original show launch ever on the Netflix’s streaming platform. This has underscored the efforts of the company to further its investments in acquiring in overseas content.
“We continue to view international expansion as a key driver of subscriber growth, particularly in less-penetrated, emerging markets,” Guggenheim analysts said in a client note.
The pace of subscriber additions in the In the first half of the year, as reported by the company, was the slowest for it since 2013 because of the break in production of original content due to the Covid-19 pandemic.
And now analysts are predicting that the company can surpass the estimates of 3.8 million in terms of actual global subscriber additions because of the instant worldwide success of “Squid Game” after being launched towards the end of the third quarter, the benefits of which can be reaped by the comp[any for the next three months as well.
Since the onset of the pandemic globally, a lot of its market share has been lost by Netflix to the more exclusive platforms which gained quick popularity among consumers who were forced to stay back home and seek in-house entertainment.
For example, the success of “Ted Lasso” is being relied upon by Apple TV+, which has helped the service to raise its share of the global streaming pie by 75 per cent so far this year, according to research firm Parrot Analytics.
The number of paying subscribers for Disney+, Netflix’s most formidable challenger, has reached 116 million within a short time span of just two years.
At the same time, the forecast for global subscribers has been raised to between 70 million and 73 million by July by AT&T-owned HBO Max which indicates the sustainability of the preference to stream content-on-demand format.
Cross-border fame and several Emmy award nominations have been drawn by international shows like “Money Heist”, “Lupin” and “The Crown” which has helped Netflix to sustain subscriber growth in its overseas markets.
“The streaming wars, as they currently stand, are not a battle to unseat Netflix within viewers’ homes, but rather to earn a place alongside the red giant,” MoffettNathanson analysts said in a research note.
According to a recent report by Bloomberg News based on internal company documents, the about $900 million would be added to the value of Netflix by “Squid Games”.
(Adapted from ChannelNewsAsia.com)