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Originally Posted by candybar
Keep in in mind that Netflix's growth is almost entirely coming from outside the US and I think their investments in originals in international markets and growing ability to handle content distribution worldwide over time will create a fairly strong moat.
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Originally Posted by candybar
My general feeling is that Netflix can create more user value out of any given content than anyone else in this space.
Quote:
Originally Posted by candybar
Also, increased local production adds substantial depth to their library on the whole and gives Netflix an edge in every market. Currently, international distribution deals are a pain and add a lot of friction - Netflix being able to promote and monetize local content instantly across all their markets is a massive advantage that gives them significant clout on the production side. People that consume a lot of non-local content are more likely to be trendsetters that disproportionately impact the brand.
Squid Game (and to a lesser extent Lupin) seems to be a great example for this thesis on Netflix - their commitment to being competitive in international markets by investing in local production, rather than simply hoping that American, Hollywood-type content works everywhere, is going to be a strong moat for them in the long run, as they can squeeze more user value out of premium content than anyone else in the world.
This isn't something that's entirely lost to the other streaming services at the executive level - Disney+ and HBO Max are starting to ramp up their investment in content overseas, though they are way behind Netflix - but it's something a lot of Americans don't realize when they declare, based on their unsophisticated viewing habits, that Disney+ or HBO Max have a much better catalog or are somehow better at creating and curating high quality content. Part of the issue is that a lot of people are comparing HBO's best shows over the past 20 years with Netflix's best shows over the past 5 years, but part of it is that people are missing that Netflix's catalog is far more eclectic and diversified, while Disney's and HBO's tend towards bland shows with mass appeal in the west.