Can Streamers’ Non-English Content Drive Both Sign-ups and Revenue? – Casson Living – World News, Breaking News, International News

Can Streamers’ Non-English Content Drive Both Sign-ups and Revenue? – Casson Living – World News, Breaking News, International News

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Netflix reported that over 60% of its subscribers watched at least one Korean title last year. Presley Ann/Getty Images for Netflix

The entertainment sector is currently ensnared in a complicated dilemma that is proving quite challenging to resolve. Increasing production costs have prompted many film and television projects to shift away from California, as states like Georgia and international locations like Croatia, Estonia, and Belgium actively seek to attract Hollywood productions with appealing tax incentives. This makes them enticing options for studios looking to cut costs, but there’s a catch: many of these international incentives stipulate that studios must produce local language content to qualify for these tax breaks. Quite the twist, isn’t it?

Simultaneously, the streaming industry is grappling with a significant challenge. The market in the U.S. and Canada has become saturated, leaving little room for subscriber growth. Consequently, future expansion is increasingly reliant on international audiences. For example, nearly 70% of Netflix’s (NFLX) global subscribers and about 80% of its quarterly growth now stem from international markets. Disney+ and Max are also witnessing stronger growth overseas than domestically.

However, although international audiences are on the rise, they generally generate lower average revenue per user compared to North American subscribers. In plain terms, streaming services typically earn more from North American customers than from subscribers in regions like Latin America, Europe, the Middle East, Africa, and Asia Pacific. This creates a paradox that could easily inspire a Christopher Nolan film. To spur growth, streaming platforms must license or produce local language content for these international markets. Yet, to maximize profitability, they need that content to appeal to their higher-paying English-speaking North American subscribers, who may not consistently engage with it. A resolution is needed.

According to Nielsen’s data, which tracks the most-watched streaming originals in the U.S. each week, only 17 non-English titles have made it into a weekly Top 10 list this year (thanks to Entertainment Strategy Guy for the insight). This low hit rate underscores the challenges non-English shows face in achieving widespread commercial success in the U.S. While American viewers are increasingly drawn to foreign language content, finding a path to sustained popularity remains as elusive as a sequel to Man of Steel.

Spanish-Language Shows Take the Lead in Non-English Content in North America

A closer examination of the data reveals that Spanish-language programming is at the forefront. Among the 17 non-English titles that made it into the weekly top 10, eight were in Spanish. Other languages represented include Japanese (3), Portuguese (2), Korean (2), French (1), and German (1). This distribution highlights the influence of established entertainment industries and large linguistic communities in shaping global content. For instance, the U.S. is home to over 62 million Spanish speakers, and countries like Japan, Brazil, South Korea, France, and Germany each have well-developed entertainment sectors.

When it comes to genres, drama leads the pack with 12 of the 17 titles, followed by unscripted content (2), children’s programming (1), horror (1), and sci-fi (1). The dominance of drama can be attributed to its versatility—crime dramas, historical narratives, romantic tales, and action-packed thrillers all fit within this broad category. (Similarly, unscripted content can encompass news, reality shows, game shows, and more.) Series like Money Heist, Griselda, and Tokyo Vice exemplify how high-quality drama, with universal themes like crime and family dynamics, can connect with U.S. viewers. The epic historical production Shogun delivered the top-tier quality that American audiences expect. Many of these series feature compelling concepts and unique storylines.

Interestingly, none of the non-English comedy series have made it into Nielsen’s top rankings for 2024. This isn’t particularly surprising, given that humor is often culturally specific and can be challenging to translate across borders.

Despite the majority of non-English titles struggling to gain traction in the U.S., American interest in foreign language content is on the rise. Between Q1 2022 and Q3 2024, the demand for non-English shows in the U.S. increased from 12.8% to 17% of total TV demand, according to Parrot Analytics, where I serve as a Senior Entertainment Industry Strategist. This trend bodes well for media companies eager to lessen their reliance on expensive domestic productions.

Regarding content that has successfully captured attention, kids’ animation and Japanese anime stand out. However, since the Japanese anime industry is quite insular and not easily penetrated by outsiders, and kids’ animation is broadly specialized, we’ll set these genres aside for now. That said, their ability to resonate across borders—thanks to advancements in subtitling and dubbing technologies—should not be overlooked by entertainment companies.

When excluding these genres, we still observe a wider array of languages represented among the 50 most in-demand non-English series in the U.S. thus far in 2024. Spanish-language series lead with 14 titles in total, including seven in the top 10. Other languages include Hindi (8), Korean (6), Japanese (4), German (4), Arabic (4), Turkish (2), Bengali (2), Chinese (2), as well as Danish/Swedish (1), Tamil (1), Greek (1), and French (1). Notably, India’s entertainment output is making significant strides in the U.S., with both Netflix and Amazon Prime Video expanding their libraries of Indian films and TV shows.

In terms of genres, drama again prevails with 19 of the 50 titles, followed by unscripted (16), sci-fi (6), dramedy (4), comedy (4), and fantasy (1). Crime dramas, family sagas, historical narratives, and romantic dramas appear to be the most successful in transcending cultural boundaries.

Spanish-language dramas like “Money Heist” and “La Usurpadora” have captured the attention of audiences worldwide, demonstrating the high production values and compelling narratives that contribute to their popularity. These series illustrate that Spanish-language content, especially with elements of soap operas and crime thrillers, can achieve broad international appeal.

Meanwhile, Korean dramas are on the rise in the U.S., with hits like “Squid Game” and “Queen of Tears” resonating strongly with American viewers. Netflix revealed that over 60% of its subscribers watched at least one Korean title last year, emphasizing the growing acceptance of Korean content in the U.S. Drama remains the dominant genre in Korean television, with unscripted variety shows and cooking reality series also carving out their niche.

Spanish-language programming, particularly dramas, constitutes a significant segment of TV demand in the U.S. Spanish-language soap operas and crime thrillers are leading the charge, with “Money Heist” standing out as a flagship program. The adaptability of drama makes it a successful genre for international productions, transcending language barriers to attract a diverse audience. Spanish-language news and sports commentary also hold substantial relevance in the U.S., showcasing the variety of programming available in this language.

As the entertainment industry adapts to the growing demand for non-English programming in North America, the challenge lies in balancing international expansion with domestic success. By examining successful international genres such as dramas, crime thrillers, and family-centered stories, studios can make informed content investments that appeal to global audiences while still resonating with U.S. viewers. This approach ensures that global growth does not undermine the appeal of local language shows, allowing studios to maintain a strong presence in both markets.

Ultimately, the key to success lies in recognizing what resonates with audiences across diverse regions. Whether it’s a gripping crime drama from Spain or a historical epic from India, studios can make strategic decisions about content investment to enhance engagement and revenue. By tailoring content to suit the preferences of varied audiences, the entertainment industry can effectively navigate the intricate landscape of international programming and maximize its impact on viewers worldwide.