Streaming giant Netflix looks set to dominate the Golden Globes, scooping up 34 nominations, evenly split across TV and film, an impressive increase from its 13 nominations in 2018 and 12 in 2017. This awards success is driven by the high quality of Netflix’s original content, in which it has been heavily investing in the last year.
The streaming giant poured $2.4bn into originals in 2019, more than tripling its original content spend since 2017. This investment has paid off, with Netflix’s catalogue consistently containing almost three-quarters (74% in November 2019) of the top 100 rated original SVoD titles released in a given year. Netflix shows are outperforming relative to the scale of production. Netflix accounts for around 61% of originals produced in 2019.
But with the recent launch of Apple TV + and Disney+, as well as upcoming launches for HBO Max and NBCU’s Peacock, Netflix could have a harder time keeping its dominant share of top-rated originals. Apple, which is devoting all of its content budget to original content, was reportedly planning $6bn spend in 2019, pushing it ahead of Netflix’s spend. Other services are continuing to bolster their own original content offerings with titles like HBO’s Chernobyl and Amazon’s The Boys shooting into the top section of ratings. Equally worryingly for the streaming giant’s wider catalogue is Disney’s removal of swathes of its top rated content in the US, such as the Marvel films and animated hits like Big Hero 6. As more distributors launch their own streaming platforms and take back ownership of their content, the pool of quality content available to commission is rapidly shrinking.
While Netflix can celebrate its Golden Globe nomination triumph for this year, ongoing heavy investment in high quality new productions is now essential to avoid being squeezed out of its leading position.
Source:Ampere Analysis