According to foreign media reports, Netflix’s content budget for the company next year will reach US$7 billion. Financial analyst firm Moffett Nathanson recently calculated that Netflix is ​​currently the fifth most funded company for film and television in the United States - much lower than the American traditional television players NBCUniversal, Fox, Disney, Time Warner, but ahead of CBS, Amazon, Hulu, Facebook, Apple.
Netflix’s advantage will be even greater if it is to open sports TV programs, second only to NBCU. However, in the United States, the company's revenue is still only a small part of these major competitors. Even in the television business, NBCU, Fox, and Disney are twice as big as Netflix.
So how does Netflix maintain its current level of content and competitiveness in this environment? The secret behind this comes from its international growth, which is unmatched by other countries.
According to 10-K documents from each country in recent fiscal years, only one traditional TV company, Disney, has a higher domestic and international income ratio than Netflix, and other companies are more dependent on the US market.
However, special attention should be paid here to the fact that most of these companies’ international revenues are mainly from the movie business, so they have focused more on TV programs in the US market.
At the same time, Netflix is ​​the fastest growing company in globalization so far: its international streaming service revenue was only 10% five years ago, but it has grown to 41% last year. As the number of overseas users of this company is higher than that of local users, this proportion will continue to change.
In response to this feature development model, Netflix’s investment in its content is also continuously internationalized. This company shoots film and television works in overseas markets, produces foreign language television programs, and launches them in various markets around the world.
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