Netflix's European Content Strategy Faces Regulatory Challenges

Netflix has significantly expanded its European operations over the past decade, investing over €13 billion in the region. The company has established ten regional teams to curate content for various European audiences. This strategic move was driven by the need for European-made content, as audiences primarily viewed American content twelve years ago. Larry Tanz, Head of Content for Europe, the Middle East and Africa, relocated to Amsterdam in 2019 to oversee Netflix's European operations.

Tanz has assembled a team of experts throughout Europe who understand local audiences and creative talents. He emphasizes the importance of authenticity in storytelling, stating that trying to make a film for everyone results in it being made for nobody. This approach has contributed to Netflix's international success, such as with Squid Game, which thrived due to its distinctly Korean essence. This proves the importance of appealing to local sentiments before seeking global acclaim.

Netflix has also prioritized accessibility, dubbing and subtitling content in over 40 languages. This strategy has been effective, as the share of non-English-language content viewed on the platform has risen from less than 10% a decade ago to over a third today. The company's commitment to local content has enabled it to resonate with diverse audiences across Europe.

Despite its success, Netflix faces challenges from European regulations. Tanz argues that outdated rules discourage investment and risk-taking essential for industry growth and supporting local talent. He believes that restrictive funding obligations might lead to unsustainable productions that fail to attract viewers. This has significant implications for the future of content creation in Europe.

Tanz urges policymakers to create incentives for investment while allowing creators the freedom to tell their stories. He emphasizes that this approach will enable Netflix and other platforms to produce high-quality content that resonates with local audiences. The company's investment in European content has already yielded significant returns, with many productions gaining international recognition.

The Big Question, a Euronews Business series, recently featured a discussion with Larry Tanz on pressing topics in the industry. Tanz's insights highlight the complexities of content creation in Europe and the need for regulatory frameworks that support innovation and creativity. The discussion is available to watch in full.

As Netflix continues to invest in European content, the company remains committed to its strategy of prioritizing local storytelling and authenticity. With a pledge of an additional €1 billion in Spain by 2028, Netflix is poised to continue shaping the European content landscape. The company's success will likely influence regulatory discussions and shape the future of content creation in the region.

Key points

• Netflix has invested over €13 billion in Europe and plans to invest an additional €1 billion in Spain by 2028.