A U.S. reset, not a global rethink
Netflix’s third-quarter earnings call was the first since Peter Rice replaced Bela Bajaria as chief content officer, and co-CEO Ted Sarandos spent part of it reassuring investors that the commissioning strategy is not being torn up. “Our strategy is unchanged,” he said, describing Netflix originals as “the anchor” and positioning third-party titles as a complement rather than a replacement.
The admission that matters: the U.S. slate needs to deliver stronger results. Executives spent far more energy on Europe, Latin America and Asia-Pacific, arguing that local titles are now the clearest proof of the model working.
Where the numbers moved
India was the standout in Q3. Co-CEO Greg Peters said viewing hours rose 24% year-over-year and revenue rose nearly 20%. India, Indonesia and Colombia were grouped as markets where Netflix can still add subscribers with accessible entry-level pricing.
- India: viewing hours up 24% year-over-year; revenue up nearly 20%; strongest India paid-additions quarter, per Media Partners Asia estimates.
- Asia-Pacific: roughly a fifth of subscribers but about 12% of revenue, with a path to $8 billion by 2030.
- Spain: licensed content rose from 2,420 hours in 2024 to 2,829 hours in 2025.
Broadcaster deals as the new lever
The strategic shift is supply-side. Netflix is using partnerships with traditional broadcasters to add local programming without bearing full production cost. The TF1 deal in France is the template: Peters said early performance is encouraging, monthly viewing is growing, and early testing suggests the programming generates incremental viewing rather than cannibalizing existing titles.
He said Netflix wants to “replicate similar positive results with other partners.” In Brazil, the Globo agreement is Netflix’s largest licensing deal in the country: 18 titles from December through mid-2027, including “I’m Still Here” and “India — A Love Story.” Fourteen are films, offering a second window to productions that often struggle after theatrical release.
Why buyers and producers diverge
For broadcasters, these deals monetize existing programming and add reach. For producers, multiparty licensing can erode exclusivity and the value of a show. UK producers voiced anxiety after recent layoffs, though some argued the British team led by Anne Mensah retains real autonomy.
Netflix is also pushing for more flexible investment obligations in Europe as it scales these partnerships, while keeping local original budgets in growth markets such as India. One leading Spanish producer said Netflix had been “pouring tons of money in originals that nobody was seeing,” and argued that Rice’s studio background makes his film and original choices the key signal.
What to watch next
In mature markets such as the U.S., U.K. and Australia, Netflix expects revenue growth from pricing and advertising. It plans to expand its advertising tier to 15 additional countries in 2027. For media planners, the practical shift is clear: local licensed programming is becoming a reach layer, not just a catalogue filler.
Source: Variety
