Credit: Edited by Inside the MagicWhile Netflix may be the reigning king of the streaming wars in the United States, the streaming platform does not hold that same status all across the world, in fact, it has given up its reigning leadership in one country to another platform that you have never even heard of.
Netflix’s success has been meteoric, marked by a steady surge in subscriber numbers over the years, cementing its status as a dominant force in the streaming industry. Since its inception, Netflix has witnessed a remarkable trajectory of growth, boasting a significant increase in subscribers from its modest beginnings of a DVD rental company.
As of the latest reports, Netflix has amassed over 260 million subscribers worldwide, a testament to its widespread popularity and global reach. This surge in subscriber numbers underscores Netflix’s unparalleled appeal, fueled by its vast library of content, innovative, original productions, and user-friendly streaming platform.
The company’s ability to continuously attract and retain subscribers has solidified its position as a leading player in the streaming landscape, setting new standards for the entertainment industry as a whole and adapting to diverse markets by offering tiered pricing options (ranging in the US from its ad-supported plan for $6.99 per month to the standard plan for $15.49 and premium for $22.99) as well as localized content.
Now, it seems more of that localized content may be needed.
At the moment, Netflix is a leading player in the streaming wars, with Amazon Prime Video trailing in second place. Considering Amazon Prime gives all users Amazon Prime Video for free, it is not surprising to see it in second, without the “freebie” from Amazon to its users, the landscape of the platform’s success in terms of subscribers would look very different. In third, we have Disney+, however, with that platform having lost over one million subscribers last quarter, it does not seem that it will be able to advance its position anytime soon.
Recently, Broadband News TV shared information that dethroned Netflix from its Arabic leadership. The company has lost its market leadership in the Middle East to Shahid VIP, an Arabic-based streaming platform.
The publication noted, “Simon Murray, Principal Analyst at Digital TV Research, said: “As some of the US-based platforms lower their global rollout and local content commitments, the Arabic players will thrive.”
There will be 26 million SVOD subscriptions across 13 Arabic countries by 2029, up from 14 million in 2023. Netflix will lose its market leadership to Shahid VIP. Netflix had 3.8 million subscribers by end-2023, followed by Shahid VIP (3.5 million) and StarzPlay (3.0 million).”
Another interesting point here is the sheer lack of Netflix subscribers that were coming from Arabic countries in 2023. With only 3.8 million subscribers, it is clear that Netflix has certainly placed its efforts on primarily English-speaking countries, with the United States being their biggest leader, with well over 65 million subscribers.
Considering Netflix holds more subscribers in the United States than the entire sum of all streaming platforms in the Middle East (26 million), it seems that the company is choosing to focus their efforts on continuing to command and reign in on the market share in the Western world.
That being said, the power of storytelling over language has been proved on Netflix before, which could make this a devastating blow.
The most popular show on Netflix to ever be released was Squid Game, a Korean drama with subtitles. While shows like Stranger Things, Wednesday, Bridgerton, and others have certainly broken barriers for the streaming platform, no one has been able to top Squid Game, even though the show has no English spoken throughout.
While Netflix may have lost its leadership in a majority of these countries, the streaming platform is certainly still functioning, and depending on the content created by Netflix over the next few years, things can swing back into their favor, since we can see by the recent shift that native content to the Middle East is how Netflix’s competitor has achieved the leg-up on the platform, especially since non-English stories generated 30% of all viewing.
In 2024, Insider Intelligence notes, “Netflix’s US subscription revenues will reach $14.52 billion in 2024, up from $13.58 billion in 2023, per a December 2023 eMarketer forecast. eMarketer expects Netflix’s subscription OTT ad-free viewers to decline each year until the end of the forecast period, sliding 1.4% in 2024 and 0.3% in 2027, according to a September 2023 forecast. This dip is largely due to the lure of more affordable ad-supported subscription options. In fact, 32% of US adults are watching subscription video-on-demand services less because they are watching more on free streaming services, per a July 2023 Aluma Insights survey.” While there will be a fall, overall, Netlfix’s revenue will continue to grow.
- United States 66,700,000
- Brazil 15,300,000
- United Kingdom 14,100,000
- Germany 13,200,000
- France 10,100,000
- Mexico 10,000,000
- Japan 7,000,000
- Canada 6,700,000
- Australia 6,500,000
- India 5,500,000
We have seen a lot more Brazilian-based shows come to the Netflix market in 2024, even for U.S. subscribers, as their audience share takes up a hefty amount for the company.
Do you think that Netflix needs more localized programming?