25-35% of consumers watch international content.
When the summer box office hinted the movie business was returning to pre-pandemic normal, the WGA and SAG/AFTRA strikes halted productions , and studios once again needed a source of new content. Although some titles were completed, the strikes meant that until the parties reached an agreement, no union members were available to promote films or series. As has been reported at this year's Toronto International Film Festival (TIFF), deals aren't happening because all sales must conform to the final negotiated settlements, and studios are reluctant to spend money on deals until the terms are known.
Déja vu All Over Again
The result is a situation that feels a lot like 2020. The COVID-19 pandemic halted film and TV productions worldwide, theaters closed, and revenues suffered significantly. Major movies scheduled for release were locked out of theaters. With massive financial losses staring them in the face, studios created the " cross-platform " distribution strategy to monetize content to recoup as much of the costs as possible. Sometimes the strategy worked , and sometimes it didn't.
A Very Real Problem
Like now, studios were challenged in monetizing theatrical releases when the pandemic lasted longer than hoped, and with no new content in the pipeline, platforms had to find something to feed the public's voracious viewing appetite. There were large libraries to pull from, but research shows that 67% of American consumers preferred watching first-run or recently released titles to something older. Of those, 50% said they will pay to watch new titles at home. Seventy-six percent of UK and US Gen Z/millennials watch foreign language films, even if they use subtitles . Given the economic situation, studios and platforms understood they had to find new content "somewhere," and they found it overseas.
Past Success Predicts Future Behavior
Many of the most watched series and films released during the pandemic and since are foreign language productions: " Squid Game " (Korea), 2.1 billion minutes, " Money Heist " (Spain), 69 billion minutes, and " All Quiet on the Western Front " (Germany) was watched an estimated nine billion minutes. Each had subtitles and audio dubs and still garnered massive audiences.
Across its catalog, Netflix estimates that 60% of its 230 million subscribers have watched Korean titles. A Parrot Analytics analysis of viewer behavior in late 2022 found that 8 out of 10 top Netflix shows were foreign language titles. It found foreign title viewing also surged on Disney+ and AppleTV+ platforms.
Lessons Learned
Those successes taught studios some critical lessons. First, today's audiences are more receptive to foreign titles and have overcome what " Parasite " director Bong Joon Ho called the subtitle "one-inch barrier." Second, because many foreign films or series hadn't aired outside their native countries, they were "new" content to international audiences. Third, foreign actors are less necessary for promoting it than for large-budget Hollywood titles. For example, not one actor in "Squid Game" promoted the series outside Korea during its release. Lastly, and more relevant to today's situation, many foreign writers, directors, and actors are neither WGA nor SAG/AFTRA members. Thus, development, production, release, and promotion can continue during the strike with some limitations.
Foreign Titles to the Rescue
Foreign titles are again filling the content gaps at a time when production and post-production have come to a halt. In August alone, Netflix added 76 new titles to its catalog, and more than half (52.6%) were foreign language productions. Although that's one example from one studio, that's not uncommon these days, but it's also not normal. That could very likely change.
As more international titles are released, ensuring they're ready for the market is essential. We've written about the best practices for preparing films and series for international distribution. With uncertainty about production, release, and distribution schedules occurring more frequently, it's wise to incorporate a process for ensuring your titles are correctly localized and compliant into your everyday workflow. No other global video compliance platform can reduce these costs more accurately than Spherex AI. Contact us today to learn how we can help get your content to market faster during regular and challenging times.
