Streaming Media Europe: Industry Announcements

Add Your Press Release

Streaming Media Europe provides this section as a service to its readers and customers.

Press releases are subject to approval by the editorial staff of Streaming Media Europe and may be edited or altered for length and clarity, or to remove unsubstantiated and unverifiable claims.

All content presented within the press release section is that of the submitter. Streaming Media Europe does not necessarily endorse such content and bears no responsibility or liability for its accuracy.


France, Italy, Germany and Spain Viewers Stopping Shows at Alarming Rate According to Entertainment Globalization Association Report

The Entertainment Globalization Association (EGA) announced it has released a report on consumer viewing habits of localized content versions. The EGA, working in part with Whip Media, surveyed over 15,000 consumers from France, Italy, Germany, and Spain

Los Angeles, CA(04 Nov 2021)

Today, the Entertainment Globalization Association (EGA) announced it has released a report on consumer viewing habits of localized content versions. The EGA, working in part with Whip Media, surveyed over 15,000 consumers from France, Italy, Germany, and Spain (FIGS) regarding their viewing habits on streaming platforms. The overall findings indicate that 61% of respondents encountered poor localization quality on a monthly basis, and perhaps more concerning, that nearly 65% have stopped watching a movie or TV show in the last year as a result.

 

“Localization quality is part of the user experience, and switching off a single show might not seem like a big deal. However, when 30% percent of respondents are doing it monthly, that’s material and it hurts streamers’ brands in these markets,” said Chris Fetner, EGA’s Managing Director and former Netflix executive who spent nearly a decade supporting their localization efforts. Fetner continued, “When you go to a movie or watch a DVD, it’s not easy to connect the localization experience to a specific entity. If it’s bad, do you blame the movie theater chain, or distributor? Do you even know who they are? It’s not the same when streaming; consumers have a monthly reminder of who’s responsible for their enjoyment.”  

 

Subscription streaming services have a much different localization quality bar than other experiences, and it’s something the creative community is still getting its head around. Unlike movies, DVDs, or even Transaction Video on Demand (TVOD) services, the barrier to entry for content can be much lower. Consumers already have access to the content, so their sunk costs are pretty low; if they detect poor quality in localization, it’s not that catastrophic to simply move on to the next choice. In isolation it doesn’t seem so bad, but in the aggregate it can have long-lasting impacts on the brand associated with the platform.  

 

“Streaming platforms are increasingly looking to have global hits like Squid Game; it’s what makes the scale of their platform appealing, so the fact that localization quality can be a headwind in that aspiration is noteworthy,” said Matteo Natale, Chair of EGA’s Insights Committee.

 

Perhaps the most provocative finding in this study is consumers’ expectations around investment in the localization process. On average, respondents wanted to see a significant portion of their streaming subscription fees dedicated to providing good quality localization. This expectation far outsizes the current market investment in the process. Furthermore, this is seen as unrealistic even by the EGA membership. The EGA estimates that localization costs are currently only a small fraction of content costs in the FIGS region.

 

“The allocation question is interesting; as an association for the globalization industry it would be easy to say, ‘See, consumers want you to pay more for this,’ but that’s not the point. It’s more about identifying how consumers value it. The survey didn’t get into the hundreds of compromises that impact all the decisions streamers have to make when operating in the FIGS,” said Fetner.

 

Another perspective on this is the impact localization can have on creative talent's ability to connect with audiences around the world. Shows like Squid Game and movies like Roma are finding worldwide audiences driven by global streaming platforms like Netflix.

 

In fact, one of the appeals of global streamers to creatives is the model’s ability to leverage global scale when attracting viewers. The EGA’s report seems to imply the innate power of global scale could actually be a liability when not coupled with good localization. Traditionally, filmmakers have left localization of their stories to distributors and studios, as it wasn’t perceived to have as tightly a correlated impact on their success. 

 

“I imagine some filmmakers and actors will pay attention to this type of data as the global reception of their content becomes increasingly important, not just at the box office, but also in terms of the artistic perception of their work. Knowing their show or movie could be switched off by 60% of viewers for localization issues could impact the perception of their success in a region and may lead to more interest in the localization process by creatives,” said Marlies Schortinghuis, EGA’s Insights Committee Vice Chair.

 

While the report does not suggest immediate or long-term fixes to resolve the quality issue, it does hint at further research on the impact of localization. The EGA’s Insights Committee is already working on further analysis of the data, including deeper segmentation studies and follow-up inquiries with its sample panels. It will also be launching a similar research project in LATAM in the coming months. The needs of localization are growing rapidly, making it important the industry gain deeper insights into consumer impact. 

 

“It would be easy to blame one stakeholder over another, but the issue impacts all stakeholders. Localization is an important part of global entertainment and EGA members wanted to see where we were today in terms of satisfying consumers. The study showed we have some work to do. I think the goal now is to work with EGA members, content owners, creative talent, and platforms, to move these numbers in a direction that continues to unlock joy and delight from entertainment around the world,” said Fetner.  

 

The full report can be found here

 

About the EGA

The EGA is a California-based trade association primarily focused on building a stronger connection with the creative talent that entrusts them to “retell” their stories for audiences in different cultures and languages. Its main areas of focus are creating standardization, conducting localization research, creating industry education opportunities, and celebrating high-quality localization. The organization is narrowly focused on entertainment localization as defined by audio localization (dubbing), subtitling, audio description, and graphic replacement for episodic, feature-length, and gaming entertainment. Currently there are 122 member companies and over 600 individual professional members. For more information, visit egassociation.org.