The latest earnings season from the major streaming companies has provided plenty of positive read-across for ZOO’s media localisation services.
Unveiling his strategy for the first time since returning as Disney CEO, Bob Iger confirmed he sees streaming as “the future“ for the global entertainment giant. Netflix added 7.7 million new global subscribers in its fourth quarter, more than 3 million higher than market estimates. Meanwhile, Paramount Global added 10.8 million new subscribers and doubled down on its commitment to scaling its streaming service and expanding to new territories.
With streaming in the US approaching saturation, OTT streaming services are targetting the underpenetrated regions outside domestic markets. ZOO’s unique end-to-end cloud-based service provided is well positioned to meet this demand from major studios.
The global market is expected to expand at a CAGR of 21.3% between 2022 and 2030 and whilst North America will continue to hold the largest market share, APAC is forecast to be the fastest-growing region. Netflix’s Q4 earnings revealed that top-line growth was driven by diverse content offerings in Asia-Pacific and Latin America.
A common theme for all streamers in the current environment is increased focus on profitability. While new TV & film production can be expensive, one effective way to make content go further and increase ROI is to localise existing content to reach new audiences. We estimate that localisation spend currently makes up less than 3% of content budgets across the industry, providing plenty of scope to increase profitability through multilingual content.
