As the SAG-AFTRA joins the WGA strike, production in the U.S. has practically come to a standstill until contract negotiations are finalized. Netflix is in a good position to outlast the WGA and SAG-AFTRA strikes even though picketers are already protesting outside Netflix offices in Los Angeles.
The streaming service has a large content library filled with international titles and most of the platform’s current production capabilities are conducted in countries that aren’t participating in the strike. These two key factors alone give Netflix an advantage over broadcast television and theatrical releases, which are expected to take a heavy hit while the strikes continue.
Netflix has been building up its international productions and releases in recent years. It’s also the first international streaming service, launching in Canada in 2010, and Latin America and the Caribbean the following year. In 2012, the streaming service became available in Europe before launching in Australia, New Zealand, and Japan, and spreading to 190 countries total as of 2023.
Netflix produces films and series out of most of the countries the platform is available in, creating original content for specific regions before introducing them internationally.
The company already has a well-established global footprint for both productions and audiences. Netflix has been spending around 65% of its annual content budget on international content.
In addition to having a secure production line, Netflix is also driving up subscription numbers since the streaming service started cracking down on password sharing earlier this year.
“Our experts estimate that of the 100 million households reportedly sharing passwords, Netflix could drive around 50% to ultimately create their own accounts,” said Jamie Lumley, Third Bridge analyst, as reported by Reuters.
Netflix subscription numbers are already up 1.77 million in the first two quarters of this year alone, reaching 232.5 million so far. In 2022, Netflix had lost around 1 million subscribers, though still ended the year with about 220 million global subscribers.
Check back with Cord Cutters News Wednesday when Netflix releases its next quarterly results.