Netflix programming spend twice as high as entire Australian production market, claims report
Global streaming giant Netflix spent more than twice as much on original programming as the entire Australian TV market, a new report has claimed.
Figures released in the World TV Production Report 2016 claim Netflix spent US$4.91bn on new programming in the last year, compared to Australia’s total market spend of US$2.4bn.
Overnight, Netflix announced it had broken the US$2bn subscriber revenue mark for the first time in the previous quarter, globally, crediting its strengthened programming line-up including Narcos and Stranger Things as attracting people to the platform.
Of that US$2.2bn, 40% came from markets outside the US such as Australia, where it has raced away from local streaming competitors in terms of subscriber numbers despite not having access to some of its premium US rights.
Locally TV networks have been hit by an advertising slowdown from major media agencies, with the metro TV market – the biggest commissioners of content in Australia – seeing a 4% drop in ad revenues this year.
However, they have said they will spend monies saved from paying less in license fees, following planned government reductions, on new content initiatives.
Currently, Netflix has not commissioned any Australian content for its platform, with the vast majority of its original content created in the US.
Amazon, which is tipped to launch in Australia in the next few months, upped its programming investment in the year to US$2.67bn from $1.22bn the year before, although both are dwarfed by Disney, which spent US$11.84bn in the year.
According to the report, compiled by research firm IHS Markit, Australia is joint fourth in the Asia Pacific region in terms of spend with a figure of US$2.4bn accredited to it, level with India. Japan is the biggest in the region (US$9.8bn) followed by China (US$8.4bn) and South Korea (US$2.6bn).
Is that $2.4b….
– Local TV Production
– International show rights?
– International + Local
– Include sports rights?
– Include staff, infrastructure, facilities?
Or Mumbrella just chasing a clickbaity headline?
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You open the article with…
“Global streaming giant Amazon spent more than twice as much on original programming as the entire Australian TV market, a new report has claimed.”
Should that be Netflix not Amazon? 🙂
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Hi blc,
You’re right, that should have been picked up. Changed now.
Cheers,
Alex – editor, Mumbrella