Advertisement

More originals means less discounts on Netflix’s ads plan

There was a negative correlation between the volume of upcoming Netflix Originals and the level of discount Netflix is offering for subscription to its new ad-funded tier in non-English speaking markets, according to an Ampere Analysis report looking at November data, commissioned by Netflix. That’s the case for Japan, where the rate of discount is the lowest, and the volume of local Originals is the highest.

Advertisement

“Given this push into non-English-language scripted content it’s understandable Netflix is less inclined to offer high rates of discount for its new ad-supported tier service in markets where it has made significant investment,” Ampere’s Olivia Deanna wrote. “Although some non-English-language titles have found international success (such as Squid Game, Lupin, or La Casa de Papal), there is a risk that localised content will struggle to find wider appeal beyond its home market.”

Company of interest: Microsoft

Netflix partnered with Microsoft last July for ad tech. The two are locked in a contract for two years. A report in Digiday last month said that Netflix is in a “build or buy” conundrum about its agreement with the Redmond, Washington-based behemoth.

Advertisement

Related stories

📺 How did Netflix lose subscribers in 2022?

🛒 Is Netflix’s best hope an acquisition by Microsoft?

💸 Netflix’s earnings won’t yet show the full impact of the new $6.99 ad-supported subscription

📬 Sign up for the Daily Brief

Our free, fast, and fun briefing on the global economy, delivered every weekday morning.