Netflix and Amazon accounted for more than half (53%) of all SVOD commissions globally in the first quarter of 2024, according to a new report by Ampere Analysis.
The report shows that Netflix and Amazon have returned to dominance in original commissioning, having been challenged in recent years by the launch of studio-backed SVOD platforms.
Netflix commissioned its highest number of new titles in the first quarter of 2024 since the third quarter of 2021, and Amazon set a new record for its quarterly commissions.
This resurgence in original orders coincides with falling commissions from cost-conscious rival streamers. This growth is spurred by increased investment in international territories, with Netflix and Amazon ordering the majority of their titles from outside the US.
Over the past few years, spending outside of the US by the two commissioners has increased steadily. Ampere predicts it will continue to rise as the players attempt to combat domestic subscriber stagnation by chasing expansion internationally.
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Netflix’s commissioning growth has been propelled by Western European and Asia-Pacific titles. In the first quarter of 2024, Netflix’s Western European commissions almost achieved parity with North American titles for the first time. Asia Pacific titles also saw a notable uptick. Ampere said Netflix is seizing the opportunity for international growth, focusing on proven market providers of portable content such as Spain, India, and South Korea.
Netflix’s Western European commissions were led by the UK, Spain, and Germany. In Asia Pacific, Thailand experienced the biggest individual increase with nine titles ordered.
Amazon’s Asia Pacific commissions were dominated by Indian productions with a record slate of 37 titles. Germany, where Amazon leads Netflix in terms of local subscribers, was the biggest winner in Western European commissions.
Mariana Enriquez Denton Bustinza, Senior Researcher at Ampere Analysis, said: “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 localised global strategy.”
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