Q&A: Netflix bets on local film and TV shows to grow its SA business

Netflix is betting on locally produced content to grow its business in SA. This week, Netflix revealed that it spent more than R2bn on film and TV projects in SA between 2016 and 2022. 

The world’s largest streaming service said it had invested $175m (R3.3bn) in content production in SA, Kenya and Nigeria over the period. Out of this, the lion’s share — $125m (about R2.3bn) — was for SA productions. 

During a presentation event at which the company released its “Socio-Economic Impact in South Africa” report, executives Dorothy Ghettuba, director of series for Africa and Ben Amadasun, director of content for Middle East and Africa, shared insights in Netflix’s growing local content strategy with Business Day. 

The US company’s approach to creating local content in a number of countries in which it operates has brought it much success in recent years. Money Heist, a Spanish-language drama series, set viewing records for the platform as global audiences watched it in droves during lockdown. Netflix has experienced similar success with the recent boom in the Korean-language Squid Game.

The company has been focusing its deep pockets on its own SA productions, such as Blood & Water, Queen Sono and How To Ruin Christmas, helping it to compete with local entertainment giant MultiChoice. 

Netflix’s latest SA production, Unseen, has already been viewed more than 24-million times in its first week of release, with a portion of viewership from outside SA. 

Are locally produced shows on Netflix viable without buy-in from international audiences? 

Ghettuba: For the avoidance of doubt, a show that blows [up] across the world and not in SA is not a successful show.

We have a local languages team. Our focus is on local language originals. Secondly, there’s not a show that has blown up globally that is not viable locally. It’s almost impossible. It doesn’t work. It has to hit at home because it is a cascade. It doesn’t start in Brazil or Korea. It starts at home.

SA audiences are the ones who have created the waves for Unseen and Blood and Water to be chart-toppers across the world. So yes, on their own they are viable and the SA audience is sustaining the shows itself. There’s no universe where a local show is a hit in the UK, Brazil, Japan ... and it doesn’t work here.

The swirl and the wave begins when the local audience watches, loves and appreciates it.

Which examples of this local content strategy have worked?

Ghettuba: Look at Squid Game. It’s an interesting case. When the show launched in Korea, we saw Korea lighting up. Then more and more people were watching it. It then starts lighting up outside [Korea], then boom … before you know it, Squid Game is a hit.

And this is what we saw with Unseen. It started lighting up in SA and it was exciting. It built and built and built. These shows have to be and they are viable, plus the audiences are sustaining them.

So what is the place of international audiences when gauging the success of local productions?

Ghettuba: Global is a cherry on top, to be honest with you. We celebrate it because great stories can come from anywhere and they can be enjoyed everywhere.

How has this strategy worked in the regions Netflix operates?

Amadasun: Without having to reveal any [sensitive] data, in the three markets that we have been programming towards in Sub-Saharan Africa — Kenya, Nigeria and SA — we see that the local content, the local titles, local stories have been the most successful for us.

When we look at the top 10 [shows] historically, those titles are hitting the top 10 of all time in these markets. In SA, titles like Kings of Joburg, Blood and Water … these big titles are making a big impact locally … They’re virtually comparable with some of the most expensive and best-produced titles we have in these markets.

They’ve got to that point where they’re beginning to sustain themselves, especially in SA, which we’re very happy about.   

gavazam@businesslive.co.za