Netflix NFLX recently unveiled the trailer for the final season of Elite, set to premiere globally on Jul 26. The widely acclaimed series, which first premiered in 2019, has garnered a loyal international following, and the anticipation for the grand finale is palpable as the show’s end draws near.
The upcoming season, crafted by Carlos Montero and Jaime Vaca, boasts a diverse cast featuring industry talents like Omar Ayuso, André Lamoglia, Valentina Zenere, Mirela Bali??, Gleb Abrosimov, and many more, promising a fitting end to the beloved series.
In a bid to keep audiences hooked, Netflix is not only bringing the curtain down on “Elite” but also expanding its Spanish content offerings. One of the exciting forthcoming releases is LALIGA: All Access, the streaming giant’s first-ever sports docuseries in Spain. Furthermore, viewers can look forward to Breathless, a gripping hospital drama series scheduled to debut on Aug 30, starring Najwa Nimri and Blanca Suárez, among others. Netflix is also working on adapting Fernando Aramburu’s novel, El niño, into a film helmed by Mariano Barroso.
Embracing Regional Content for Revenue Surge
To strengthen its foothold in global markets, Netflix is intensifying its focus on regional content, particularly in countries like Spain, Indonesia, Thailand, and the Philippines. This strategic move is not only expected to bolster the streaming giant’s reach but also fuel streaming revenues in the upcoming quarters.
The Zacks Consensus Estimate projects NFLX’s 2024 streaming revenues at $39.04 billion, indicating a robust 16% year-over-year growth trajectory.
In Indonesia, Netflix is diversifying its content portfolio by introducing a mix of genres. For instance, the upcoming film Abadi Nan Jaya, scheduled for 2025 release, weaves a tale of a dysfunctional family navigating a zombie apocalypse amid their traditional herbal medicine business. Additionally, the crime thriller Borderless Fog, set against the backdrop of the Indonesia-Malaysia border and directed by Edwin, is poised for an impending premiere.
Thai viewers can expect engaging content like Doctor Climax, a period piece set in the ’70s that explores taboo subjects through the lens of a skin doctor turned sex columnist. Moreover, Tomorrow and I, a sci-fi anthology series exploring the intersection of technology and Thai culture, is slated to hit screens later this year. With plans to launch 10 Thai titles in the second half of 2024, Netflix is committed to diversifying its content offerings in the region.
Catering to the Philippine market, Netflix will debut Outside, a psychological thriller directed by Carlo Ledesma, on Oct 11, 2024. By prioritizing regional productions over licensed titles, Netflix aims to enrich its content library and showcase authentic narratives from different corners of the world.
Despite its aggressive content expansion, Netflix faces formidable competition in the streaming landscape from industry heavyweights like Amazon, Disney, and Paramount Global.
The streaming giant has exhibited strong market performance, with a 40.2% surge year to date, outperforming the Consumer Discretionary sector’s 1.7% decline. Moreover, NFLX has surpassed the growth of competitors like Amazon (30%), Disney (9.2%), and Paramount Global (22.5%) during the same period.
In Summary
Netflix’s strategic emphasis on regional content is a significant growth driver, amplifying its global appeal and bolstering long-term prospects. However, the cutthroat competition in the streaming sector remains a pressing concern.
Furthermore, forging partnerships with leading telecom companies worldwide is poised to fuel Netflix’s international subscriber base, paving the way for sustained growth.
The Zacks Consensus Estimate for Netflix’s Q2 2024 EPS is forecasted at $4.7, reflecting a modest increase of 1 cent over the past 60 days. Similarly, the full-year 2024 earnings estimate stands at $18.31 per share, with a comparable 1-cent upward revision during the same period.