Lotz Et Al 2022
Lotz Et Al 2022
Lotz Et Al 2022
https://doi.org/10.1093/joc/jqac020
Advance access publication 11 June 2022
Original Article
As is often the case in technological innovation, thinking critical communication/media studies scholarship, the three
about streaming services has been structured by the capabili- most important differences are: Streamers’ reliance on sub-
ties and protocols of similar technologies that came before. scriber support, their ability to deliver bespoke content on de-
A century ago AT&T imagined radio through the lens of the mand, and their ability to be offered at a near-global scale.
telephone, though failed to make radio a point-to-point tech- These features allow different business strategies that yield
nology, while television largely adopted regulatory norms and different content priorities and different cultures of consump-
scheduling features from radio. Industry, policymakers, and tion than characteristic of previous distribution technologies
scholars now attempt to slot streaming video services into our that provide the foundation of the field’s thinking.
conceptual understandings of previous video providers that Subscriber funding alters the core business of streamers
used broadcast signal, cable, or satellite to distribute content from the commercial norms of advertiser funding in profound
to the home. ways (Lotz, 2007, 2017). The need to compel viewers to pay
However, Internet-distributed video both is and isn’t com- and the ability to offer a range of titles simultaneously—
parable to these previous technologies. Indeed, even Internet- rather than a single title most likely to attract the most view-
distributed video may be too varied a category to make sub- ers—enables, even requires, different content strategies than
stantive claims—TikTok and YouTube operate under very have been used by video services that seek to attract the most
different industrial conditions than Netflix and Disneyþ, attention to particular titles at a specified time. Streamers
though all offer Internet-distributed video. The latter services, have accelerated the transition from mass to niche video in-
also identified as subscription, video-on-demand services dustry logics that had been developing since the widespread
(hereafter, “streamers”), provide the focus here. As video adoption of cable and satellite in the 1990s. The ubiquitous
services, streamers do important cultural work in society by accessibility of broadcasting that was core to theories about
producing and circulating stories that, like other audiovisual the cultural power of in-home video also diminishes as a con-
services, mostly reinforce, but sometimes contradict hege- sequence of these different affordances (Lotz, 2021b).
monic ideas and contribute to culture shared by many (Fiske, The global reach of several of the most widely subscribed
1987; Gitlin, 1979; Newcomb & Hirsch, 1983). But they are streamers integrates them in conversations about transna-
also different from previous distribution technologies upon tional media flows and power that have been a core concern
which foundational theories were built, and these differences of critical communication studies. Video media businesses
require revising or reframing theory. Moreover, the industrial have been transnational since technology made video trade
context of the 21st century, which is characterized by much feasible (Steemers, 2004; Havens, 2006), yet the last quarter
greater choice in services (channels and streamers) and sub- of a century has accelerated and reconfigured the internation-
stantial audience fragmentation across these choices, also alization of video businesses and video consumption (Lobato,
necessitates adjustment of theories that were developed for 2019; Steemers, 2016). The rapid expansion of global stream-
norms of limited choice and mass audiences. In terms of ing services has hastened the erosion of once-nationally
C The Author(s) 2022. Published by Oxford University Press on behalf of International Communication Association.
V
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512 Netflix, library analysis, and globalization
organized video sectors and substantially altered legacy busi- categorization for preliminary assessment of streamers’ librar-
nesses of transnational television trade, their industrial priori- ies. Such theories derive from the stronger national organiza-
ties, and the accessibility of video produced outside the long- tion of predigital distribution technologies and have informed
dominant Hollywood system. policy and come to be “industry lore” (Havens, 2014) but do
This article investigates how global streamers challenge not adequately account for the complexity of viewing practi-
existing communication and media theory about transna- ces now common, especially with regard to such expanded
tional video and its cultural power. It considers how stream- choice. The inquiry here does not aim to assert flaws with the
ers’ discrepant features combine with coterminous, but previous emphasis on proximity and national specificity.
unrelated disruption from previous industrial norms and con- Rather, it explores how the industrial context in which these
ditions to necessitate theory rebuilding. These adjustments theories were developed was circumscribed by mechanisms
have implications for key theories and assumptions about the and practices that substantively narrowed available content in
dynamics of power involved in media trade, including those a manner never accounted for because those mechanisms
about corporate ownership (de Sola Pool, 1979; Schiller, appeared so natural they obscured counter explanations.
1969; Tunstall, 1977), proximity (Straubhaar, 1991; 2007), The broader significance of this inquiry relates to how new
asymmetrical interdependence (Straubhaar, 1991; Straubhaar distribution technologies—and the different business models
Cultural and economic concerns have become complicat- viewing hours), Straubhaar (2007) developed a more nuanced
edly intertwined over time, both in national policy and schol- picture than provided by macro level data of raw imports
arship regarding audiovisual industries. In many countries, used to argue U.S. hegemony.
cultural policies such as local content quotas, as well as sup- Research developed since the height of belief in cultural im-
ports and subsidies for domestic productions or national/pub- perialism identified significant sub-flows of content that could
lic broadcasters, aimed to prevent imported content from be explained by geo-cultural or cultural-linguistic proximity
dominating or inhibiting local production. Many of these pol- (Sinclair et al., 1996). The priority of proximity transcended
icies were effective through the twentieth century, as countries scholarship and even became common in industry discourse.
found a balance that enabled coexistence of domestic and for- This encouraged a surge in the development of “reality” pro-
eign content. gram formats that could be sold across markets and remade
Substantial changes in industrial dynamics that increased with market specificity in the early 2000s as titles such as Big
the pressure to achieve transnational audience scale have Brother, Pop Idol, and Weakest Link blanketed the globe
steadily eroded this balance. Satellite channels and their appe- (Waisbord, 2004). These formats avoided the level of concern
tite for programming encouraged greater internationalization that exports of Dragnet, Dallas, and Baywatch inspired ear-
(Chalaby, 2005) that has since been expanded by multi- lier because they enabled “customization,” a deliberate dis-
Twentieth-century television and distribution technolo- analytics companies indicate Netflix is a niche service (sub-
gies—the context in which most communication and media scribed to by fewer than a quarter of households) in most
studies theories about the operation of “mass storytelling” in countries. But it is arguably a mass market product in
culture were built—offered viewers the metaphorical tip of Australia, the United Kingdom, the United States, and
the iceberg in terms of the range of stories perceived as com- Canada where roughly half of homes subscribe.4
mercially viable. Most programs were designed to attract the On the one hand, Netflix is a single entity. Much about it is
most attention—foremost in their nation of production—but consistent across its transnational reach. On the other hand,
by the 1990s, the need for U.S. content to be accessible and Netflix is varied in ways that many do not realize. For exam-
desired by viewers around the globe also provided a guiding ple, Wayne (2020) identifies localization of the user interface
industrial logic for what was made for U.S. audiences. Viewer in Israel with both Hebrew language and right to left orienta-
choice was constrained, though not strongly perceived as such tion of the interface—a localization strategy common in many
because the condition of channels selecting programs and markets, and Netflix has offered a lower priced mobile-only
making them available at particular times was simply subscription in some markets, particularly in India to
“normal.” Though cable and satellite introduced more choice addresses two characteristics of that context: (a) that Netflix’s
through more channels, most programming on those channels standard price is high relative to market norms and (b) that
Argentina
Australia
Brazil
Canada
Colombia
France
Germany
India
Italy
Japan
Mexico
to make sense of because streamers’ offering of a library is so Table 1. Source country of titles in Netflix library, based on average
different than the schedules linear services have offered; and composition of 17 national Netflix libraries
there is not consistent and comprehensive data about this as-
US 40.8%
pect of linear services. We can nevertheless put these results India 8.7%
into what may be a more meaningful context. On average, Japan 6.1%
3.8% of a library amounts to roughly 200 titles. This is not UK 5.5%
an insignificant number, though it likely is more meaningful S. Korea 4.8%
when compared to other streamers in a specific market (see France 3.3%
Spain 3.0%
Lobato and Scarlata, 2019). To be certain, sorting produc-
Canada 2.5%
tions by country of origin is a limited point of analysis. It does China 2.2%
not tell us if a title is at all culturally ‘of’ the place it is pro- Egypt 1.8%
duced. In other analyses we have found some Netflix commis- 69 others 21.4%
sions to be significantly grounded with cultural specificity
(place-based), yet more often they rely only on banal signifiers
that locate the setting without cultural detail (placed), and in perceived as dominant in past trade.10 Steemers (2004) cites
other cases produce stories devoid of cultural or geographic data produced in 2001 indicating the United States accounted
indicators (placeless) (Lotz and Potter, 2022; see chapters in for 75% of the value produced by exporting television, the
Lotz and Lobato, 2023). Systematic textual analysis is needed UK 10%, and Australia and France 1.2% each, leaving 12%
to investigate the extent to which domestic titles indicate cul- accrued by the rest of the world. This is not a perfect compari-
tural specificity but cannot be validly performed with a corpus son to the library titles, but it is indicative of the dynamics of
of titles as expansive as a national library. the linear era and how strongly the U.S. dominated trade.
Another way to assess national origin of the libraries is to In sum, Netflix libraries aren’t overwhelmingly composed
evaluate the countries that are the source of the titles in the 17 of only U.S.-produced titles. The U.S. accounts for more con-
countries’ libraries. Table 1 presents the top ten countries that tent than other countries—typically around 40% of titles—
source the 17 libraries and the average percentage of titles but the remaining 60% is sourced from 80 different countries;
they account for. Only eight of the 17 countries that are part this is very different from other U.S.-based services (Disneyþ;
of the library analysis rank among top ten sources; titles from Apple TVþ). Even so, Netflix offers significant domestic con-
China, a country in which Netflix does not offer service, ac- tent in only a few countries (United States, Japan, South
count for just over 2% of titles, while Egypt is just under 2%. Korea, India, and UK).
Both China and Egypt produce content for substantial audi-
ences, China in terms of population and Egypt as a major pro- Library composition
duction hub in its region. Note also that the countries that To investigate more deeply the extent to which there is cross-
provide the most titles in Table 1 are not those generally national variation in the titles included in Netflix libraries we
516 Netflix, library analysis, and globalization
Commissioned titles
Another point of library comparison that shows strong com- Argentina
monality is the balance of “commissioned” versus licensed Australia
content. Commissioned titles are those where Netflix funds
Brazil
production costs, which earns it input on development;
whereas licensed content is commissioned by other providers, Canada
typically television channels, or created for theatrical release. Colombia
Across the 17 libraries, commissioned titles account for 28%
France
on average. Netflix generally makes its commissioned titles
available across all libraries, so variation owes primarily to Germany
differences in library size. Commissioned content ranged from India
1,404 titles in the Japanese library to 1,520 titles in the
Italy
Spanish library, with an average of 1,464 titles across the 17
libraries. Commissioned titles are important to analyzing the Japan
lutely North American), yet among the commissions that deb- HBO Max
uted in 2020, only 50% were produced in the United States,
Disney+
illustrating the decline in U.S. production as the balance of
subscribers shifted outside UCAN. Still, many of the 17 major Paramount
Netflix markets have 20–40 domestic commissions, which
AppleTV+
amounts to less than 1% of their library titles.
It is important to remember that these 17 libraries are not
0 2000 4000 6000 8000
representative of other Netflix libraries in terms of domestic
commissioning: 95% of Netflix commissions are accounted Total Hours Commissioned
for in these 17 libraries, so other libraries will include very lit- Figure 7. Comparison of total hours commissioned by major streaming
tle locally commissioned content. Although Netflix is commis- services, February 2021.
sioning a significant number of titles outside the United
States, this number is more impressive when aggregated cross-
nationally than it is at the national level. origin of its library. Services such as Disneyþ, Paramountþ,
Yet, Netflix clearly differs from other global streamers in and HBO Max rely on titles produced in the United States for
the extent of its commissioning of titles outside the United decades before streaming.
States. Figure 7 shows the number of hours commissioned by A key factor in Netflix’s differentiation from other stream-
different global streaming services.12 It should be noted that ers, then, is the extent to which it commissions content in
several of the other services launched since 2019 while many countries and that it then circulates those titles across
Netflix’s first commissioned series debuted in 2013. its libraries. Netflix’s commissioned titles account for roughly
Commissioned content produced in the U.S. accounts for half of the 60% of titles common across the libraries.
58% of Amazon commissions, 61% of Netflix commissions, Netflix’s transnational “circulation” of content is uneven, but
88% of HBO Max commissions, and 96% of Disneyþ com- arguably more distributed than the case of broadcast or satel-
missions.13 The scale of Netflix’s commissioning—as opposed lite channels. It is unclear whether this strategy will remain
to those offering a service based on owned intellectual prop- specific to Netflix or be adopted by other streaming services
erty—is relevant for understanding the variation in country of as their new title development expands.
518 Netflix, library analysis, and globalization
Discussion context. The cluster may seem surprising, aside from roots in
The capabilities of multi-territory streaming services have British colonialism, but this is likely a function of Netflix tar-
reanimated legacy concerns about cultural imperialism and geting a particular sector of the Indian population and the
balance and flow in audiovisual trade. The willingness of a fact the country has more English speakers than any country
significant number of subscribers to pay to access Netflix—a but the United States. Even though it offers a discounted,
service with predominantly foreign content and not guided by mobile-only pricing plan in India, its library strategy suggests
the aim of building a national audience—challenges the pre- a priority on a cosmopolitan niche that complements the
sumed priority on proximity that developed to explain past dominant Indian-based streaming services in the market such
as ALTBalaji and Eros Now that have libraries of mostly
transnational media flow dynamics. The implications of the
Indian productions.
evidence derived from Netflix library analysis are complicated
To consider context in another case, the high take up of
and suggest the need for new lines of research about the cul-
Netflix in Australia should not be casually explained by cul-
tural role of video in the 21st century.
tural and linguistic proximity alone. Rather, it likely owes as
Its clearest contribution is in dismantling false presumptions
much to Australia’s lack of a competitively priced cable or
of uniformity across U.S.-based, multi-territory streaming serv-
satellite service. The Australian company Foxtel has held a
9. Those familiar with European regulation of content quotas may Lobato, R. (2019). Netflix nations: The geography of digital distribu-
find this surprising. It should be noted that the AVMSD was in var- tion. NYU Press.
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the time the data was collected. Many member states’ national ver- Availability and discoverability. https://apo.org.au/sites/default/files/
sions of the AVMSD catalogue quotas affecting on-demand serv- resource-files/2019-10/apo- nid264821.pdf.
ices allow for the majority of the requirement to be satisfied Lotz, A. D. (2007). If it is not TV, what is it? The case of U.S. subscrip-
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