As Netflix’s global success continues to soar, the streaming giant is crediting its hyperlocal content strategy for its triumphs, from Squid Game to Adolescence.
The Secret to Global Success: How Hyperlocal Shows Conquer the World
The global phenomenon of Squid Game is a testament to the power of hyperlocal content. Netflix co-CEO ‘Ted Sarandos’ attributes its success to a counterintuitive strategy: focusing on authenticity and local appeal rather than aiming for a global audience.
Hyperlocal content refers to news, articles, and information that focuses on a specific geographic area, often a neighborhood or community.
This type of content is tailored to the local audience's interests and needs.
Characteristics of hyperlocal content include proximity-based storytelling, local events coverage, and user-generated content.
According to a study, 77% of online adults get news from social media, with hyperlocal content being a significant portion of that.
Hyperlocal websites often rely on citizen journalism and community engagement to provide unique perspectives on local issues.
The Art of Authenticity
Sarandos believes that the more authentically local a show is, the more likely it is to travel and become a global hit. This philosophy is evident in Netflix’s approach to content creation, where overseas teams have absolute autonomy over what they program for their countries. There is no discussion about making anything from a local show global.
Ted Sarandos is a Greek-American media executive, serving as the Chief Content Officer of Netflix. He has been instrumental in shaping the company's content strategy, focusing on original productions and licensing agreements. Under his leadership, Netflix has produced critically acclaimed series such as 'Narcos', 'Stranger Things', and 'The Crown'. Sarandos has also overseen the development of popular films like 'Roma' and 'Marriage Story'. With a career spanning over two decades in the entertainment industry, he has become a key figure in shaping modern television and film.
A Korean Success Story
Squid Game‘s success was not just a lucky break; it rode the crest of a cultural wave that had already brought Korean pop culture to global prominence. However, Netflix didn’t create Squid Game with international audiences in mind, despite knowing K-dramas have a large fanbase abroad.
K-Pop, short for Korean Pop music, has gained immense popularity worldwide in recent years.
The genre combines catchy melodies with highly produced music videos and choreographed dance routines.
According to a 2020 survey, 64% of Americans aged 13-24 are familiar with 'K-Pop' , while the global K-Pop market is projected to reach $12.9 billion by 2025.
K-Pop's global appeal can be attributed to its unique blend of traditional Korean music and modern production techniques.
The Power of Cultural Context
The series’ plot draws on traditional Korean children’s games from the 1980s and 1990s, making it very different from typical K-dramas. ‘It’s very Korean,’ Sarandos notes, highlighting the importance of cultural context in creating a show that resonates with audiences worldwide.
A Shift in Strategy
In its early days, Netflix tested the idea of creating globally oriented shows by mixing actors or storylines from different countries. However, this strategy flopped. The company pivoted to a more focused approach, and viewership soared.
Beyond Korea: A Global Perspective
Sarandos points to Adolescence, a newly released four-part psychological crime drama, as another example of Netflix’s hyperlocal success. The series is remarkably British, with American viewers potentially needing subtitles.
The Evolution of Netflix
Today, ‘Ted Sarandos’ describes Netflix as both ‘a local company and a global company‘ and both ‘a tech company and an entertainment company.’ Though the U.S. remains its biggest market, international users now make up the majority of Netflix’s subscriber base.
A trillion-dollar Ambition
Netflix is one of the few major tech companies to see its stock rise this year amid market volatility triggered by unpredictable policymaking in Washington. ‘Sarandos’ has stated his ambitions to grow Netflix into a trillion-dollar company eventually, though he hasn’t detailed any plans to expand beyond its core offerings.
Strong Results
The company’s streaming business continues to post strong results, with revenue doubling and profits rising steadily over the past five years.
