East Europe next likely focus for Netflix original content investment
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Editor
| 05 September 2019

An Ampere Analysis study has pinpointed Russian speaking markets in the CIS region as the likely next key target for Netflix original content production.

The analyst says that a number of Netflix markets appear to be underweight in terms of their local original production activity relative to the importance of the market to Netflix and that other markets that have yet to receive local production investment are high on the list of potential targets.

The report notes that the markets with room for growth include Australia, Poland, Germany and the Netherlands which says Ampere display the characteristics of underweight markets. Ampere believes that that the size of the streaming audience in Australia makes it an ideal target for local investment, even though existing demand is met with English-language originals.

Ampere sees productions with a home-baked Australian flavour will pay dividends in a market with strong SVOD penetration, especially in the light of Disney’s DTC imminent launch in the territory. The report adds that smaller markets worthy of joining Belgium (just announced as the next market for a Netflix original) in getting their own local original, include Switzerland and Finland as well as Portugal.

Markets that Ampere characterises as looking decidedly overweight include Denmark, India and several Latin American Netflix markets, appearing to have a glut of content and investment. The reasons lie in the global popularity of Nordic Noir and exportability of Spanish-language content to the US, and the longer-term potential Netflix sees in India.

Commenting on what will be the likely next hot spots, Ampere Analysis director Guy Bisson said: “Within the top 30 markets still to receive local attention, Russian speaking markets in the CIS region seem likely targets for production investment, as do a number of smaller Western European markets crying out for local flavour. Beyond Netflix’s largest 30 markets, the next 10 biggest markets yet to receive investment include major CEE countries like Hungary and the Czech Republic, and several Middle Eastern countries. I’d expect announcements of new originals in these markets in the next few months and beyond.”