Streaming services have become a part of every household in the US. Data shows that content on these platforms is being watched more than on a cable network. A Kantar study shows that 95% of US households have at least one streaming subscription. This shows a close to complete market saturation in the country.
However, streaming services are no longer focused only on global hits with universal appeal. Instead, they are pouring resources into producing and acquiring localized content tailored to specific regions and languages. This shift reflects not just a change in audience preferences but also a strategic move to strengthen subscriber retention in diverse markets.
Local stories have always resonated more deeply with regional audiences. While blockbuster shows attract attention, they often don’t hold viewers’ interest across every cultural context. Streaming platforms have realized that to maintain growth in saturated markets, they need to offer content that feels relevant to local viewers.
In this article, we will look at why streaming services are investing heavily in localized content.
Table of Contents
Meeting Regional Expectations and Regulations
As streaming platforms expand across global borders, they face increasingly complex regulations set by governments in different countries. Local content quotas and regulations in many countries require streaming services to feature a significant percentage of regional programming.
Australia recently joined other countries in pushing for a quota on local content. According to an article from The Guardian, the country is asking streaming services to have at least 20% of localized programs and shows. However, streaming companies are lobbying the government for as low as 2%.
Regardless of what percentage is finalized, these quotas mandate that national cultures and languages are well represented. It also enables local talents to get opportunities to create original content.
Local regulations aren’t just about content quotas; they also often include policies on how content is distributed. For example, age-based content restriction is normal in most countries. Thus, streaming services need to verify the user’s age before showing the content.
This is where reliable customer identity verification becomes crucial. Platforms must authenticate users’ locations and their ages to ensure that each region’s content library is accessed appropriately.
Protecting Pricing Models and Content Integrity
A significant part of this localized content strategy is maintaining fair pricing structures that reflect local economies. Streaming platforms typically adjust their subscription fees based on the purchasing power of different countries. They offer more affordable pricing in emerging markets while charging higher fees in wealthier countries.
For example, the cost of a Netflix basic plan subscription in India is just over $2 (₹199). On the other hand, pricing for the same plan in the US is $11.99. This pricing model can be exploited, as users in higher-priced regions may use VPNs to access content at a lower price.
To prevent such issues, streaming services need to ensure that only legitimate subscribers are accessing the content available in their region. Again, customer identity verification can be useful here as well.
As noted by AU10TIX, identity verification can be used to scan government-issued IDs. This can help streaming services ensure the client’s permanent address and citizenship. By verifying the user’s location and account authenticity, platforms can ensure that users are paying the correct subscription price.
The Creative Edge of Local Content
Beyond business strategy, there’s a creative edge to investing in localized content. As stated in a Sage Journals study, embracing local content helps offer diversity in streaming services. Global streaming services understand that diverse storytelling has become a driving force in the entertainment industry.
Audiences around the world are seeking content that represents their own cultural identity, stories, and language. Local content is often more relatable, as it mirrors the traditions, issues, and lifestyles of a particular society.
Shows like Narcos (Colombia) and Elite (Spain) prove that international audiences are eager for content that offers unique perspectives. By investing in localized stories, streaming platforms tap into a rich vein of creative material that attracts local viewers and global audiences.
This move toward localization also reflects a broader shift in how the world consumes media. The traditional model of a few dominant Western studios exporting content is no longer the sole norm. Local production houses now have a larger stake in global media markets, as streaming platforms are keen to pick up region-specific content.
Loyalty Through Representation
When people see themselves represented on screen, they feel valued and understood. This sense of representation is crucial in building long-term loyalty among subscribers.
As streaming services embrace localized content, they send a message that they are committed to reflecting the diversity of their global audience. By offering culturally specific programming, these platforms cater to the individual tastes of local users, which helps keep them around.
When viewers feel like the content is made for them, they are less likely to churn and more likely to become loyal customers. This can be highly crucial in today’s world, where acquiring a new subscriber can cost five times more than retaining one. While there are many ways to retain customers, offering something they enjoy watching is the best way to do so.
Instead of watching shows that may not reflect their cultural values, people are drawn to stories that speak directly to their interests. This sense of belonging and representation builds a stronger emotional bond with the platform, which is vital for a competitive advantage.
Frequently Asked Questions
How do streaming platforms choose which regions to target for localized content?
Streaming platforms use viewership data, subscriber growth trends, and regional engagement metrics to determine where to invest in localized content. They also consider market potential, language demographics, and the presence of strong local creative industries before making that decision.
Is localized content only about translating or dubbing shows into different languages?
Not at all. While dubbing and subtitles help content reach a wider audience, localization involves creating original content that reflects local cultures, values, settings, and more. It’s about developing shows that feel native to the audience, not just linguistically adapted.
Do smaller streaming platforms also invest in localized content, or is it limited to big players like Netflix and Amazon?
Smaller platforms are increasingly investing in localized content as a way to stay competitive. Many regional or niche platforms focus almost entirely on local productions to attract viewers who want alternatives to global offerings. These platforms often collaborate with local creators to keep costs manageable and content authentic.
As competition among streaming platforms intensifies, localized content has moved from being a nice addition to a strategic necessity. It’s not just about meeting regional regulations or filling out content libraries. It’s about building meaningful relationships with audiences through stories that reflect their daily lives, cultures, and perspectives.
This approach demands more than creative investment. It requires operational shifts that include secure systems for access, such as reliable customer identity verification, to ensure content is distributed fairly.
