Hello, fellow melodrama lovers, and welcome back to "Sabrina's Odd Rambles about Telenovelas" (still working on the title, don't judge me). Today, I want to focus on how Netflix's increase in telenovela acquisition is impacting broadcast industries across Latin America. There are many shows that Netflix has acquired after they have successfully broadcast in Latin American countries, which comes with a hefty check for the original production company. According to CNBC, "Netflix buys shows at a rate of the cost of production plus about 30 percent of production costs" (Castillo, 2018). An example is the show I'm watching for this class, Un Bandido Honrado. The first episode had 12.3 million viewers and surpassed Yo Soy Betty, la fea, to become Colombia's #1 telenovela. At the end of the series, viewership had dropped to 10.9 million fans, but the show was still Colombia's third most popular program. The show became available on Netflix on August 31, 2019 (one week before the finale aired on Caracol). Although viewership numbers or ratings are unavailable for the show's debut on Netflix (booooo!), La Reina del Sur (another telenovela acquired by Netflix, produced by Telemundo) was the fourth most popular show on Netflix as of May 2023, which shows that their acquisition technique is positively impacting their viewership.
However, for some broadcast companies, like Televisa in Mexico, the rise of telenovelas on Netflix is wreaking havoc on their viewership numbers, and subsequently, their profits. In an article published in the Wall Street Journal in April 2018, David Luhnow and Santiago Perez claim that 2017 was Televisa's worst fiscal year in two decades, in large part due to decreasing viewership because of Netflix and its "higher quality dramas and racier 'narconovelas'" (Luhnow and Perez, 2018).
I think it's really interesting to see how streaming is impacting broadcasting not only in the US but globally. As I keep consuming telenovelas (because let's be honest, I will be starting La Reina del Sur within the next month or so), I'm going to keep track of how streaming is impacting the industry.
Until next time, my friends. Sabrina Felix, signing out!
Link to the CNBC article about Netflix's acquisition process for TV shows: Netflix cost-plus model for TV shows, paying more up front but keeping more later on big hits, insiders say
Link to the WSJ article about Netflix's impact on the telenovela industry: Netflix Breaks Up Audience Romance With Telenovela
Hey there, Sabrina! Love your "Odd Rambles about Telenovelas"! Your take on Netflix's telenovela takeover is spot on. The way they're picking up these shows left and right and changing the game all at once really is fascinating. Un Bandido Honrado sounds like a rollercoaster of viewership, but hey, it's still making waves. And La Reina del Sur hitting the top charts on Netflix? That's some serious impact. I definitely remember seeing that on the Top 10 charts for a few weeks. Unfortunately Televisa in Mexico taking a hit in viewership and profits. Netflix's "higher quality dramas and racier 'narconovelas'" are for sure shaking things up in the world of telenovelas. I'm with you on keeping an eye on how streaming is reshaping the industry. I am interested to see where this melodrama-filled journey takes us!
ReplyDeleteHey Sabrina! I love your observation about Netflix’s and streaming effects on telenovela broadcast companies like Televisa in Mexico. Like you mentioned, its “higher quality” and “racier” dramas from Netflix that are causing decreases in viewership on some telenovela broadcast companies like Televisa. As i was reading your post I noticed something that I would like to add to the list of Netflix’s effects on telenovela broadcast companies. The telenovela I am watching, The Marked Heart, is produced and streamed by Netflix and I have noticed how it has slightly strayed away from some of the “traditional” telenovela layouts. Telenovelas produced by Netflix seem to be more “Hollywood-like” with a telenovela like flair as opposed to a true telenovela. While this might have made this particular telenovela more in my personal comfort range to watch, its not what I would personally call your traditional telenovela. While these untraditional telenovelas or “telenovela like” shows may be good to start out on and get your feet wet, it can often set a distorted image to many people watching these telenovelas of what a true telenovela is like. For example, if your were to go ask a random person around our age if the 2014 version of Jane the Virgin was a telenovela, it’s highly likely they would say yes. It just goes to show how Netflix and other American streaming services have kinda shifted what people not exposed to telenovelas in everyday life believe a telenovela is like.
ReplyDeleteI loved this topic of discussion Sabrina, I’m excited for more odd rambles!