Will OTT libraries prioritise local content in Latin America?

Netflix reportedly invested $50m USD to adapt the classic Colombian novel Cien años de soledad of Gabriel Garcia Marquez, which will be released on the platform in 2024. The streamer has been investing more and more outside of the US in the last few years.  Conversely, Paramount Global and Warner Bros. Discovery have recently reevaluated their international commissioning strategies, pivoting towards prioritising established Hollywood franchises as a means to ensure more stable investments in light of economic uncertainties. In January 2024, in the midst of a potential buyback and before stepping down from the company, the ex-CEO of Paramount Global Bob Bakish said the company would “produce fewer local, international originals” for its platforms, except for its free-to-air networks in Australia, Argentina, Chile and the UK.  Allocating resources to international content represents a bold yet potentially lucrative investment. But as most streamers face a profitability crisis and must deploy a more cautious approach to content spend, cost-cutting via content (including via international content) might affect their attractivity outside of the US. How does it affect the amount of local productions available on OTT libraries in the region? More generally, how are US streamers’ libraries competing with local and established OTT services in Latin America? Netflix’s expansive library is leading on SVOD In the LATAM region, OTT services have implemented distinct strategies tailored to each country. The AVOD service Tubi (NBCUniversal), exclusively available in Mexico within the region and defining itself as an “aggregator of free content”, unsurprisingly features the largest catalogue of content with 18K titles. Among SVOD services, Netflix showcases the most extensive library with almost 8k titles available in every market, followed by Amazon Prime Video (although its library is smaller in Brazil) and the recently rebranded Max with 4.5k titles. Indeed HBO MAX’s conversion to Max in several Latin American countries came at the end of February 2024, offering a streaming library of more than 37,000 hours of content — doubling the amount of content available on HBO Max in those countries. The content available on Max in the region mirrors that of the US, drawing from Warner Bros. Discovery's diverse array of networks and studios. This includes offerings from HBO, Warner Bros., the DC Universe, Discovery, Cartoon Network, etc. Disney platforms Disney+ and Star+ follow with less than 2k titles each on average. It was reported recently that Star+ will be discontinued in June 2024, and its content will transition to Disney+ (including ESPN channels), likely positioning it as a closer competitor to Max in terms of title offerings. Also, two local platforms with mixed business models and ad-tiers segments complete the top 10: the Brazilian Globoplay (Globo) and the Mexican Vix (TelevisaUnivision). American streamers’ libraries...