Streaming Giants Netflix and Amazon Take Lead in Content Commissioning, Shifting Market Focus from U.S. to Local Productions

Netflix and Amazon have reasserted their dominance in commissioning original content globally in the first quarter of this year, as per research and consultancy firm Ampere Analysis.

The two streaming giants faced challenges in recent years with the emergence of studio-backed streaming platforms. However, the studio players have scaled back due to factors such as Hollywood strikes, escalating costs, and pressure from investors to demonstrate profitable growth.

Netflix saw a surge in new title commissions, reaching its highest number since the third quarter of 2021. Meanwhile, Amazon achieved a new quarterly commissioning record. Together, Netflix and Amazon accounted for over half (53%) of global streamers’ commissions from January to March 2024.

Ampere’s report highlighted that both Netflix and Amazon now source the majority of their titles from outside the U.S. This shift is attributed to market saturation within the U.S. and aligns with their strategy of catering to local markets through locally produced content.

Netflix’s commissioning growth has been particularly focused on West European and Asia-Pacific titles. The platform’s Western European commissions nearly matched North American titles for the first time in Q1 2024. Netflix is strategically targeting international growth by emphasizing markets like Spain, India, and South Korea.

In Asia, Thailand witnessed a significant increase in commissioned titles, with a particular emphasis on crime and thriller content in India. Ampere predicts that India will become Netflix’s largest subscriber hub in the region.

While Netflix lags behind several Indian streaming players in terms of subscriber numbers, its higher price point positions it uniquely in the market. The platform is actively seeking to compete more closely with Amazon in India.

On the other hand, Amazon is intensifying its focus on India, commissioning a record slate of 37 titles in the country in the first quarter of 2024. This move signifies Amazon’s commitment to challenging local platforms and solidifying India as a key component of its global strategy.

Amazon’s emphasis on original movie ordering has been bolstered by its acquisition of studio MGM two years ago. The platform overtook Netflix in original movie orders for the first time in the second quarter of 2023.

In Western Europe, Germany emerged as a significant player in content commissions, with Amazon leading Netflix in terms of local subscribers. The market saturation in North America, along with rising production costs and the aftermath of Hollywood strikes, has prompted both Netflix and Amazon to ramp up investments in international productions to drive subscriber growth.

Mariana Enriquez Denton Bustinza, a senior researcher at Ampere, noted that while both platforms are doubling down on their global strategies, they have distinct approaches. Netflix aims to cater to a broad subscriber base while focusing on markets with potential for crossover appeal. In contrast, Amazon’s strategy is more targeted, with a strong emphasis on key markets like India and expanding into the theatrical market to generate additional revenues.

While Ampere’s report did not mention it, Amazon also benefits from a “flywheel effect” in markets where it operates shopping membership plans, leveraging synergy between online entertainment and e-commerce.