In-depth analysis of local content and audience preferences. The analysis covers seven markets: Brazil, Mexico, Colombia, Argentina, Peru, Chile and Ecuador.
PlumResearch
Netflix has experienced tremendous growth in Latin America in recent years, with Brazil and Mexico leading the way in local production and subscriber numbers. As the streaming giant continues to expand its footprint in the region, it has invested heavily in producing original content in the local language to satisfy local audiences. But has this investment really paid off?
The most recent study presented by PlumResearch, an agency that specializes in measuring accurate and granular data from streaming platforms, found the following key findings:
- Productions of original content in the local language can get Netflix to have international successes such as El Juego del Calamar (Squid Game), Lupin or La Casa de Papel.
Consumers in all seven Latin American markets are spending more time watching Netflix original programming as it has grown in Netflix's library.
Major local titles such as Triada (Triptych), La Primera Vez (Eva Lasting), Mirada Indiscreta (Lady Voyeur) and División Palermo (Community Squad) were successful in all seven markets.
Cumulatively, the seven markets totaled $10.4 billion spent watching Netflix content in the first quarter of 2023 with a total of 171.2 million viewers.
Major local titles were successful in all seven markets
With Netflix's determination to expand its footprint in Latin America, the streaming service has introduced fiction series and movies, documentaries and reality TV shows. PlumResearch selected the top 10 local-language series in the first quarter of 2023, to find out what viewers in the seven markets identified with. Brazil and Mexico were leaders in local production
According to Omdia, Netflix will reach 40.3 million subscribers in Latin America by the end of 2023, which includes 14.4 million from Brazil, 12.2 million from Mexico and 5.5 million from Argentina. By the end of 2027, its subscriber base in the region is projected to grow another 15% to reach 52.3 million.
Latin American viewers spent 10.4 billion hours watching Netflix content in the first quarter of 2023
In Mexico, viewers watched 3.1 billion hours of Netflix content, and spent 69.0% of that time watching series. The comedy, action, and adventure genres accounted for the largest share: 22.3% of all series were comedy, and 17.8% action-adventure.
The top three series in the quarter were: Wednesday with 7.2 million viewers, Sing with 6.9 million and The Glory with 6.4 million. In turn, Brazilians watched 3.8 billion hours of programming during the same period, and 73.7% of that time was spent watching series, with comedy (22.2%) and animation (15.8%) as their preference.
Its top three series were The Endless Night (11.4 million viewers), You (9.5 million) and Outer Banks (8.8 million). Cumulatively, the seven markets totaled 10.4 billion hours spent watching Netflix content in the first quarter of 2023 and a total of 171.2 million viewers. Netflix can still grow more in the region.
Netflix viewers and total hours of series watched by country
Those who spent most of the time watching Netflix original series were Brazilians and about 55% of the total hours were from such productions. Those who spent the least time on the above were Ecuadorians and consumers in the other five markets were half. To put this in context, viewers in the United States spent 51.5% of their time watching Netflix original series during the same period.
According to PlumResearch, consumer demand for local language content is evident. In Mexico, 11.3% of the time consumers spent watching all series in the first quarter of 2023 was content produced in Latin America, both acquired and original. The other six markets show a similar trend. Therefore, as Netflix continues to increase its local production in the region, this number of viewers is expected to grow significantly.
Return on investment of Netflix local language productions in Latin America
Brazilians spent most of their time watching Netflix original series, with about 55% of total hours spent on those productions.
In Mexico, 11.3% of the time consumers spent watching all series in the first quarter of 2023 was content produced in Latin America, both acquired and original.
Although the time spent watching original series produced locally seems little, it is because in Latin America Netflix has only released 40 series and movies per year since 2019. As Netflix continues to increase its local production in the region, this number of viewers is expected to grow significantly.
In general, Netflix's local-language productions serve several purposes, including creating partnerships with local production companies and talent, adding a localization layer to the streaming service, and serving as a source of self-created content that can run and be managed through franchises. With the potential for success of productions such as El Juego del Calamar (Squid Game), Lupin and La Casa de Papel, local investments in Latin America have a high potential for return on investment.
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