Netflix and Amazon have regained their leading positions in the streaming industry. According to the Ampere Analysis Report, these two streaming giants dominated original content commissioning for streaming platforms in the first quarter of 2024. Reportedly, Netflix and Amazon were responsible for 53 percent of all global SVOD commissions when other streaming platforms cut back due to cost concerns.
In the first quarter of 2024, Netflix commissioned over 200 shows and movies, and Amazon commissioned around 140, while Disney+, Paramount+, Comcast, and Apple TV+ had less than 50 shows according to Ampere Analysis. This marked Netflix’s most significant quarter in three years and a record for Amazon Prime Video.
This surge in content commissioning is driven by Netflix and Amazon’s increased investment in international markets, with most of their titles now being ordered from outside the USA. Over recent years, spending by these two companies outside the USA has steadily risen. Ampere Analysis predicts this trend will continue as they seek to counteract domestic subscriber stagnation by focusing on international expansion.
According to Ampere, for the first time, in the first quarter of 2024, Netflix’s content commissions in Western Europe nearly matched those in North America. The UK, Spain, and Germany led these Western European commissions. Cost-effective unscripted content was prominent, with documentaries making up 30% of the regional orders, an increase from 23% in the same quarter last year.
Furthermore, Ampere’s report highlights distinct strategies between Netflix and Amazon in the streaming market. In India, Netflix has concentrated on commissioning crime and thriller series, according to Ampere. However, Netflix has reduced its domestic orders for original movies, opting instead to secure new, exclusive U.S. films through pay-one agreements with theatrical studios.
In contrast to Netflix, surpassing the combined total of the previous six quarters, Amazon’s Asia Pacific commissions reached a new high with 37 Indian productions, and a significant slate of 32 titles in Q2 2022. The streaming giant also revealed its largest lineup of Indian original movies to date and is actively seeking pay-one and co-financing agreements with local theatrical distributors.
Additionally, in Q1 2024, Amazon expanded its content orders significantly in Germany, as per Ampere Analysis marking a notable shift after previously concentrating on Italy and France in Western Europe. This surge, with 13 new commissions, nearly doubled Amazon’s previous peak in Q1 2021 and underscores its leadership in the German market over Netflix in terms of local subscribers.
Mariana Enriquez Denton Bustinza, Senior Researcher at Ampere Analysis says, “The market saturation in North America, the growing cost of production, and the lingering impact of the Hollywood strikes have pushed Netflix and Amazon to increase investment in international productions to stimulate subscriber growth. While several studio-backed SVoDs have made cutbacks internationally, these two streaming giants are doubling down on their localized global strategy. For Netflix, this means catering to a broad subscriber base while leaning on markets whose productions offer the greatest potential for crossover appeal. Meanwhile, Amazon’s approach remains more heavily targeted towards key markets such as India, while it leverages its global position to expand further into the theatrical market to generate downstream revenues from its platforms.”