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Photo: Guillaume Payen/SOPA Images/LightRocket via Getty Images

The push to create rivals to stunt the growth of Netflix has become a global phenomenon, as the streamer is now available in 190 countries and is poised to consistently make more money in the future abroad than in the U.S.

Why it matters: The same efforts seen in the U.S. — where broadcasters and telecom companies are teaming together to create Netflix competitors — are happening globally, pointing to the threat of Netflix's dominance abroad.

  • In the U.K., British broadcaster ITV joined BBC and Channel 4 in June in signing a 5-year agreement to invest $165 million to turn a British digital video platform into a Netflix competitor, per The Hollywood Reporter.
  • In Australia, CBS said in August that it's planning to expand its subscription services to rival Netflix in Australia. It purchased Network Ten for a reported $162 million in Australia last year which should bolster that offering. 
  • In France, the country's biggest broadcasters unveiled "Salto" earlier this year, a streaming platform that combines programming muscle from French broadcasters France Televisions, TF1 and M6, per Deadline.

By the numbers: Netflix stock was up roughly 15% in after-hours trading Tuesday after the streaming giant announced it beat investor expectationson earnings, revenue and user growth.

  • The company added 5.87 million international subscribers compared with the 4.46 million expected, according to FactSet.
  • At this point, the company has over 73 million international subscribers and it expects to hit nearly 80 million by the end of the year.

Between the lines: The company is pouring billions of dollars into localized content and has been pushing to form marketing partnerships with local telecom companies to widen its distribution.

  • Chief content officer Ted Sarandos said last week, "So as long as we focus on the quality of production, those (local) shows can be worked to drive local subscribers in (a) country, but also drive global viewing when we do it right."

Yes, but: The company faces challenges in some key markets.

  • In India, the company acknowledges that it faces fierce competition from Hotstar, which is owned by 21st Century Fox. Netflix CEO Reed Hastings says it's expanding beyond English into Hindi, and is looking at more pricing and bundling options there.
  • In Brazil, a #DeleteNetflix campaign erupted earlier this year after former Brazilian President Dilma Rousseff and other political figures accused the streamer of political bias and character assassination.
  • In China, where internet video consumption is outpacing traditional TV, Netflix is not available. There, iQiyi, owned by Chinese tech giant Baidu, is dominant, but is still much smaller than Netflix.

What's next: Netflix said earlier this month that productions have increased nearly 5x in Latin America since local shows began filming in the region in 2015 and has more than 70 titles being filmed across Latin America.

  • Producers of Latin American content are gearing up for a production demand from streamers entering those markets.
  • Latin American SVOD (subscription video on-demand) subscribers are expected to double by 2023, according to Simon Murray, principal analyst and owner of Digital TV Research.

Go deeper

Justice Department drops insider trading inquiry against Sen. Richard Burr

Sen. Richard Burr (R-N.C.) walking through the Senate Subway in the U.S. Capitol in December 2020. Photo: Stefani Reynolds/Getty Images

The Department of Justice told Sen. Richard Burr (R-N.C.) on Tuesday that it will not move forward with insider trading charges against him.

Why it matters: The decision, first reported by the New York Times, effectively ends the DOJ's investigation into the senator's stock sell-off that occurred after multiple lawmakers were briefed about the coronavirus' potential economic toll. Burr subsequently stepped down as chair of the Senate Intelligence Committee.

Netflix tops 200 million global subscribers

Illustration: Rebecca Zisser/Axios

Netflix said that it added another 8.5 million global subscribers last quarter, bringing its total number of paid subscribers globally to more than 200 million.

The big picture: Positive fourth-quarter results show Netflix's resiliency, despite increased competition and pandemic-related production headwinds.

Janet Yellen plays down debt, tax hike concerns in confirmation hearing

Treasury Secretary nominee Janet Yellen at an event in December. Photo: Alex Wong via Getty Images

Janet Yellen, Biden's pick to lead the Treasury Department, pushed back against two key concerns from Republican senators at her confirmation hearing on Tuesday: the country's debt and the incoming administration's plans to eventually raise taxes.

Driving the news: Yellen — who's expected to win confirmation — said spending big now will prevent the U.S. from having to dig out of a deeper hole later. She also said the Biden administration's priority right now is coronavirus relief, not raising taxes.