After hitting a massive number of domestic subscribers, Netflix Inc (NASDAQ:NFLX) has turned its attention to growing its international audience.
The success of the South Korean hit “Squid Game” brought worldwide attention to Netflix. Could a South African series help boost subscribers in Africa?
What Happened: Streaming giant Netflix has pushed to ramp up its international offerings with many subscribers tuned into local language offerings along with hit international shows.
On May 12, Netflix will release “Savage Beauty” on the platform. The thriller series is linked to plots of betrayal, revenge and a beauty empire, which is similar to many shows that have been hits in America.
“Beauty is skin deep but family lasts forever,” a promotion for the series says.
Netflix released a trailer on April 12 for the show, which helped increase awareness and bring some attention to the May release date.
The show follows Zinhle Manzini who goes undercover as an ambassador for the Behngu family’s beauty company. The trailer hints the character could have revenge in mind.
Related Link: Squid Game Season 2 Talks Confirmed By Director But Here's Why He's Not In A Rush
Why It’s Important: Non-English language series “Squid Game” became the biggest show for Netflix and was watched by 142 million households in the first four weeks of release. The show became number one in 94 countries, including the U.S.
While not every show will hit the same “Squid Game” success, it’s a good example of how international hit shows can appeal to certain regions and boost international subscribers, as well as help the company with domestic viewership and churn.
A Hollywood Reporter story in January highlighted the growth of the streaming industry in the African region with Netflix among the parties investing heavily there.
“I’ve been in this industry for 20 years, and it’s only now that we’re seeing this real explosion, a real tipping point, for African content,” Nigerian TV pioneer Mo Abudu told The Hollywood Reporter.
Abudu’s EbonyLife company signed a deal with Netflix for several feature films.
Along with Netflix, Amazon.com, Inc. (NASDAQ:AMZN) and Walt Disney Co (NYSE:DIS) are also investing in content from Africa. Disney is launching Disney+ in South Africa in May.
The African streaming market is still in the early stages and Netflix enjoys a sizable early lead in the region with a market share of more than 50%. One estimate said 1.4 million subscribers for video-on-demand are now in the sub-Saharan African region with growth expected to hit 2.4 million by 2026.
An estimate from Digital TV Research puts the market larger with an estimated 5.1 million SVOD subscribers in the sub-Saharan African region. The firm sees the total hitting 15 million by 2027.
Digital TV Research previously forecast that Netflix could hit 2.6 million subscribers in Africa by the end of 2021. The firm also predicted Netflix to hit 5.84 million subscribers by 2026 and maintain its lead over second-place Disney+.
Netflix could see its market share drop to the 30% to 40% range with competition from Amazon, Disney, Apple Inc (NASDAQ:AAPL) and local players such as Showmax.
Netflix reported 222 million paid subscribers in the fourth quarter. The total came in below the company’s original forecast.
“Even in a world of uncertainty and increasing competition, we’re optimistic about our long-term growth prospects as streaming supplants linear entertainment around the world,” Netflix said of the fourth quarter.
Netflix is scheduled to report first-quarter earnings Tuesday after market close. Analysts expect the company to report $7.93 billion in revenue and $2.90 in earnings per share versus totals of $7.16 billion and $3.75 from the previous year respectively, according to Benzinga Pro.
NFLX Price Action: Netflix shares are up 3.77% to $350.61 on Tuesday at publication.
Photo: Image from "Savage Beauty" Trailer via Netflix
