Netflix will team up with Russian firm National Media Group to produce its first fully localized content in the transcontinental country.
According to reports, the target launch will be in mid-October. At initial entry, the venture will feature 40 Russian films and will expand to a hundred by the end of the year.
Although produced in Baltic vernacular, it will be available worldwide for the enjoyment of native and non-native speakers alike.
The movie streaming app expands its audience by producing content in the local languages of its partner countries.
It has so far launched versions in Hindi, and its partnership with Malaysia last week drove its local language version to a total of 33.
The National Media Group, also known as NMG, flaunts a significant scope in Russia’s entertainment market segment. It accounts for roughly 25% of all pay-TV market in the country.
It houses a wide variety of theatrical content, which is outsourced mostly by Western producers. Since 2016, NMG has actively partnered with international entertainment producers, namely Discover, Turner, and Sony, among others.
Doubling its Market Share
Netflix’s team up with the Russian firm is strategic as the country allows foreign companies to hold only until 20% of shares, as stipulated in its media legislation. The partnership adheres to all the rules enshrined in the law.
One of the most anticipated releases in the platform is the Russian film series titled “Epidemiya” which made its debut to Cannes Film Festival— the largest international market for film, television, and modern technology digital content.
The series will be released under the international title “To the Lake.”
As asserted by experts, the technology company’s partnership with NMG has the potential to drive Netflix’s Russian stocks to double now that it produces more content for local viewers.
It could grow at a potential rate of 7 to 8% in the next three years. Its shares however, will remain status quo at 4% for 2020.
Netflix and Fox Rematch
Meanwhile, one of Netflix’s long-standing battle with another content producer surrounds technology news anew.
Back in 2016, Disney-owned Fox filed an employee-poaching lawsuit against the Nasdaq frontrunner after the latter hired two of its key executives. They included a 20th Century Fox vice president of promotions and another executive in Fox 21.
Both of the employees are on a two-year contract with the television channel. Moreover, the streaming giant reportedly lured them through a double salary offering.
In December 2019, a Santa Monica-based Superior Court Judge found that the firm induced Fox employees to abandon their fixed-term contracts and join NFLX. It called out the tech company to stop Fox employees’ poaching.
Earlier this week, Netflix filed an appeal to the court. It argued that Hollywood’s traditional employment contracts impede free movement and mobility, and should therefore be disrupted.
It added that its rival locks its incumbent employees. They do this by offering modest pay rises, which is in exchange of agreeing to multi-year, fixed-term contracts.
Finally, it said that Fox intimidates employees to accept company terms and threatens them if they refuse. This often results in “intolerable” innovation, mobility, and competition.
Should Netflix win the battle, the result will reverse the way Hollywood does business for good.
