Vlassis 3
how audio-visual content can be accessed, even though these SVOD services are
expected to have “differentiated effects on the markets” they have entered (Lobato,
2018: 184). Today the only worldwide VOD services are two US-based companies –
Netflix and Amazon Prime Video – and by 2021 we should include in this list HBO
Max, Hulu, Disney Plus, and Apple TV Plus. As of July 2020, Netflix, the world’s
largest SVOD service, is available worldwide except mainland China, Syria, and
North Korea. In addition, Netflix spent around 12, 15 and 17 billion USD on original
content in 2018, 2019 and 2020 respectively. For its part, Amazon Prime Video
launched worldwide in December 2016 except for mainland China, Cuba, Iran, North
Korea, and Syria. As stressed by McDonald and Smith-Rowsey (2016: 1–2), Netflix,
followed by other US SVOD services, had “a transformative effect in the relationship
between consumers and content providers,” becoming “synonymous with the grow-
ing, pervasive impact of technology.”
Netflix is one of the US-based platforms benefiting from the lockdown measures due
to the COVID-19 global pandemic. According to its quarterly reports (Netflix, 2020a), in
the first 6 months of 2020, Netflix added 26 million new subscribers worldwide, which is
almost the same as the number of subscriptions throughout 2019 (28 millions). As of July
2020, the Californian platform has around 193 million subscribers compared to 167 mil-
lion at the end of January (Table 1).
It’s worth noting that before the COVID-19 pandemic, Netflix’s growth in the United
States had started to drop, while the international market started to occupy a key place in
the company’s strategy: between 2018 and 2019, Netflix saw a 55% decrease in net adds
in the United States, only bringing in 2.6 million new subscribers. Last quarter of 2019,
Netflix added 0.42 million subscribers domestically, whereas it saw an additional
8.33 million subscribers internationally (Netflix, 2020b). Moreover, during the lockdown
measures, more than 80% of the new subscribers came from outside the North America.
From January to July 2020, the California-based company signed up 5.2 million sub-
scribers in the United States and Canada, as well as 9.7 million new paid subscribers in
the region Europe, Middle East and Africa, followed by a major increase in Asia-Pacific
with more than 6.3 million new membership additions. Regarding the high jump in Asia-
Pacific, it is revealing that by end 2019, this region accounted only for 8% of the com-
pany’s total revenue.
Besides, unlike Hollywood studios such as Disney, Universal, Paramount, Sony and
Warner Bros, Netflix does not release its films into cinema theaters and its business
model has not been impacted by the fact that movie theater screens fade to black in
several countries during the COVID-19 pandemic. Instead, for commercial and sym-
bolic reasons, Hollywood studios decided to not skip theatrical releases and to not head
directly movies to streaming online platforms. The majority of Hollywood movies have
pushed to early or mid-2021 with six notable exceptions: Trolls World Tour and Scoob
distributed by Universal Pictures and Warner Bros respectively and released for digital
rental; Artemis Fowl and Mulan released on Disney Plus, as well as Greyhound released
on Apple TV Plus.
In addition, Netflix’s dominance is largely challenged by Disney Plus, Disney’s
new video streaming service, launched in November 2019 in the US, Canada and the
Netherlands. In July 2020, Disney Plus reached more than 60 million subscribers (The