The Massive Advantage of Global Scale in Streaming Video
The European Parliament may have given Netflix (NASDAQ: NFLX) a blessing in disguise when it passed a law requiring 30% of content on streaming video services to come from European countries. While Netflix originally focused on local content to attract local viewers, it's found local content can have global appeal. Americans are consuming more foreign content than ever, which allows streaming services with global scale to make the most of their content spending while local competitors are left with less differentiated content.
Image source: Getty Images.
There are really only a couple of streaming video services with global scale right now. Netflix has over 200 million subscribers worldwide, and Disney (NYSE: DIS) is quickly catching up with Disney+, which ended 2020 with 94.9 million total subscribers.
Source Fool.com
