Could Hollywood's Stalemate Prove The Wisdom Of Netflix's International Strategy?

Barring an unforeseen intervention from a secret industry superhero capable of soothing professional tensions and bruised egos with a single word, the ongoing conflict between writers, actors and studios will continue for some time. Eventually, however, the inability or unwillingness to reach a deal will impact more than issues of fair and proper compensation and resource allocation, as the length of this stalemate could significantly affect the delivery of fresh new content. We're already witnessing a game of musical chairs with the release schedules for upcoming film begin to play out in an unfortunate reminder of the uncertain pandemic shutdowns.

Should this come to pass and scripted US-based content production winds up marooned in a state of perpetual pause, platforms will need to rely on different forms of entertainment to keep viewers engaged and subscribed. Netflix may have an advantage here, as it had the top global premieres in the first quarter of the year, according to Parrot Analytics

You’ll notice several non-English series such as Rana Naidu, The Romantics, The Makani: Cooking for the Maiko House and From Me To You: Kimi Ni Todoke generated impressive audience demand levels in their first 30 days of release.  This signifies strong interest during their respective "in-season" windows. 

While non-English series can still struggle to break through to American audiences, they remain a steady source of regional viewership capable of adding market share in less mature international areas. And, in the best of cases such as Squid Game, they go on to become global hits that generate traction in the highest ARPU countries. 

Thanks to its long-term international investment strategy, Netflix holds an advantage over other content providers; the company now has a presence in every country on earth, save China, Russia, Syria, and North Korea.. 

This provides a longer runway of new content options over the near and long-term schedule should the US production pipeline remain offline due to the strikes. And while this advantage should not play a role in Netflix’s willingness to contribute to labor negotiations, it does leave them in the best position to offer superior options for viewers seeking out new titles over the next several months.