Stream On ’22

Two weeks ago, at the Code Conference, Endeavor CEO Ari Emanuel claimed “the total addressable market of content is infinite.” Netflix is spending $17 billion a year to validate his thesis. So far, they’re both right. Since last Friday, Netflix raised subscription prices in 11 countries by as much as 40%. A company’s ability to raise prices is a function of the delta between the price and the perceived value. Nothing better illuminates this delta than the below chart:

 
Glocal

Squid Game was sourced, written, and produced in South Korea. Within 10 days of its release, the show was No. 1 on Netflix in 90 countries. The Tarantino-meets-Terry-Gilliam take on children’s games has the fastest-growing audience of any Netflix original ever, registering a 981% engagement increase in its first week. On TikTok, #SquidGame has been viewed more than 22.8 billion times. The jump in South Korean internet traffic was so great that internet service provider SK Broadband is suing Netflix to pay for the costs it’s incurred to deliver the megahit.

Q: How did this happen? A: Intentionally. Netflix landed on foreign shores in 2011, when it launched its service in 43 Latin American and Caribbean countries. Now it’s available in every country except for China, North Korea, Syria, and the disputed region of Crimea. Four years ago, Co-CEO Reed Hastings estimated Netflix could achieve a 75% to 80% international user base. Currently its non-U.S. streamers make up 65% of its users and generate 56% of total revenue. Netflix is far and away the world leader in distribution.

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Πηγή: profgalloway.com