With Netflix focusing on producing more original content by adopting a glocalization strategy, its revenue increased by 47.9% to $2.8 billion in the previous year, paving the way for unstoppable growth.
Online streaming has become an integral part of what we call millennials and Gen Z. Statistics reveal that around 4.66 billion people. i.e., 60% of the population worldwide is online. The entertainment industry has bloomed significantly, with many online platforms meeting the rising demands of people globally. Today, people can tune in to any channel of their choice and watch what interests them, from videos and films to documentaries, series, and much more.
Online media streaming benefitting from the pandemic
Statistics reveal that the impact of the COVID-19 pandemic has led to an increased media consumption around the world as people resort to seeking home entertainment amid lockdowns and curfews implemented to check the spread of the pandemic.
Video streaming services across the globe reached 1.1 billion subscribers in 2020 amid the pandemic, data released by the Motion Picture Association in March highlighted.
By taking advantage of the online world in an era where smart TVs, smartphones, and tablets have become handier than anything else, platforms like Amazon Prime, Hulu, Netflix, and several others are soaring high, taking over business online by storm.
Netflix, a company that has become a global name today, started the business by selling DVDs and rental by mail service back in 1997. Netflix today has a family of 208 million people, including 74 million subscribers in the United States and Canada.
Producing and distributing content worldwide and running by the slogan "Netflix and chill," people have gained a fondness for this platform due to its unique content. It is the only platform that brought streaming its content by globalizing it. Out of its 700 original productions, Netflix decided to direct 80 of them with an international focus, as said by David Wells, the Chief Financial Officer of Netflix.
Today, Netflix has expanded to 190 countries. Wonder how?
It took seven years for Netflix to reach where it is today, growing globally and adding subscribers each day. The course has not been easy as it suffered many ups and downs to the point where it even went into bankruptcy in 2010. Rising competition and meeting up local needs were a few of the severe challenges it faced, but taking a lesson from it, today, Netflix has increased its revenue to a point no one could imagine before. In 2020 alone, it increased its number of original shows from 1,500 to 2,000.
Netflix adopted a glocalization strategy. Though many might refer to Netflix's approach as "globalization" alone, by looking at its current scenario, it clearly shows that Netflix is heading in the business by following "localization" and globalization" simultaneously, hence a glocalization strategy.
Through its glocalization approach, Netflix has managed to increase its revenue, be known globally, and generate a fanbase. But most importantly, by facilitating itself according to the cultural needs and mindset of the people by producing relevant content, it has gained an exceptional place in the competitive world, standing sturdy and strong -- that's what its statistics show.
Operating in over 190 countries today and with 130 million subscribers out of the United States clearly shows how massive Netflix has become in a short period, side-lining any competition whatsoever.
The company is getting bigger and better by adopting a glocalization strategy, by catering to the entertainment needs of people across continents to present an incredible user experience.
So now the question arises how Netflix achieved such a large-scale fanbase from different countries and not just English-speaking communities.
The answer is the use of “closed captions.” Netflix is not only producing content according to the mindset of different people, but it is also closed captioning its content and making a wide range of globally accredited films available to audiences in local languages from different film industries.
For those not familiar with closed captions: It is a text version of the spoken part in the video, timed perfectly so that a user can understand what is being said in the video.
Various studies have pointed out that videos with closed captions increase the chance of viewers watching them by at least 50%. Netflix has made it its priority to ensure closed captions in the content it streams.
Get an insight into transcription and closed captions that can help boost video views significantly, increasing the efficiency of your globalization strategy.
Netflix expanded bit by bit by first approaching people with a similar mindset as its base country and then incorporating other horizons in its platform to make it more versatile and available to different communities by shortening the geographical and psychic distance. It made deals with local companies to enter various markets and make a place for itself, which it has successfully secured over time.
Netflix is not alone in the competition with touch competitors such as Amazon Prime and YouTube that are equally making efforts to globalize themselves as much as possible. With Amazon Prime recently announcing itself to go global, Netflix is sure to deal with good competition lying ahead of its course.
In a nutshell:
One can rightly say that in today's era where more and more people are becoming internet savvy, glocalization strategy is the way to success and to reach and connect with people in the most effective way.
Generating culturally acceptable content, using transcriptions and closed captions, promoting content cleverly by using the right approach are the keys to success in the fast-paced, high-tech era we are living in today.