Netflix is doubling down on its investment to develop new content for its hungry subscribers worldwide. Last week, the streamer announced a plan to invest more than $220M to create French-language content, including feature films and original series. A key ingredient in Netflix’s international expansion has been creating original, local content for each major market. The company achieved smashing success with its survival series SQUID GAMES, first developed for the South Korean market in 2019 but eventually growing into a global hit.
Netflix’s international expansion comes amid significant struggles at home. The company’s stock has plummeted from a high in November 2021 of nearly $700 per share to a current price of just under $350 per share. The company has been increasingly sober in its public statements citing the rising cost of production and difficulty in luring new subscribers.
In January, Netflix began its rollout of price increases in the North American market with hikes of $1 to $2 per month. This month, it announced increases in the UK and Ireland, as well, but asked its customers to view this as the cost necessary to keep its local productions flowing, such as POWER OF THE DOG, BRIDGERTON, EMILY IN PARIS, and THE CROWN. While these are expensive investments, these price increases are also an effort to boost revenues…and profits…in an increasingly competitive landscape of high-end streaming services.