Illustration: Sarah Grillo/Axios

Efforts to dethrone Netflix abroad are underway, as more money pours into upstarts looking to compete locally against the streaming giant.

Why it matters: Netflix's user base is nearing saturation in the U.S., so it needs to continue growing abroad if it ever wants a chance at profitability.

The big picture: Around the world, companies are teaming up to create rival streaming services to compete with Netflix, and are withholding their top content for their own efforts.

  • Iflix, a Malaysia-based streaming video subscription service focused on Southeast Asia and the Middle East, raised over $50 million in what it refers to as pre-IPO funding, Axios' Dan Primack reports.
  • BritBox — a streaming service from British broadcasters BBC, ITV and Channel 4 — is finally arriving in the U.K. for £5.99 ($7.50) a month, after first launching in North America.
  • Salto, a streaming service from French broadcasters France Télévisions, M6 and TF1, launched last year to prevent French content from being at the mercy of a U.S. tech company. The broadcasters began yanking their content away from Netflix in favor of their own service in January.

Yes, but: Analysts mostly agree that the streaming giant is so far ahead of the competition that it will be tough to stop it from continuing to add subscribers overseas — even though its earnings report last week suggestedotherwise.

  • Domestic competitors that will eventually look to launch overseas — like Disney+ — aren't set to launch globally for at least another year.
  • In some markets, like Japan, Netflix's investments in localized content are paying off, and are beginning to eat market share.
  • As The Hollywood reporter notes, several markets have seen would-be competitors try and ultimately fail to compete with Netflix.

Between the lines: Analysts don't foresee Netflix's footprint growing that much bigger in some of its biggest international markets.

  • The streamer currently has roughly 150 million subscribers, with about 90 million coming from about 190 markets overseas.
  • Most of its overseas subscribers are likely consolidated into a handful of bigger markets — Canada, the UK, Brazil, Japan, and Australia — and those markets aren't poised to grow that much more, says Michael Pachter, a research analyst at Wedbush Securities.

What's next: The next big battleground for Netflix is India, one of the fastest-growing streaming markets.

  • The big question for Netflix will be whether it's able to capture Indian users, with a cheap, "lite" mobile versions of its app.
  • "Netflix 'lite' is a land grab, pure and simple," says Pachter. "I cannot conceive that they will be profitable at $3 per month in India, but it gives them a giant head start."
  • Netflix is also hoping that reduced pricing options, along with a heavier investment in localized Indian content, will lure subscribers from Amazon and Disney-owned HotStar.

The bottom line: "These localized players reflect modest and isolated competition and almost always ends up being a partner outside their home market (or core content window), says Matthew Ball, former head of strategy at Amazon Studios.

Go deeper: Netflix's reliance on big hits will be a hurdle for future growth

Go deeper

Updated 1 hour ago - Politics & Policy

Trump's Tucker mind-meld

Photo illustration: Sarah Grillo/Axios. Photo: Roy Rochlin/Getty Images and BRENDAN SMIALOWSKI/AFP via Getty Images

If you want to understand the rhetorical roots of Trump's Independence Day speech at Mount Rushmore, go back and watch Tucker Carlson's monologues for the past six weeks.

Between the lines: Trump — or rather his speechwriter Stephen Miller — framed the president's opposition to the Black Lives Matter protest movement using the same imagery Carlson has been laying out night after night on Fox.

Updated 4 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 6 p.m. ET: 11,366,145 — Total deaths: 532,644 — Total recoveries — 6,154,138Map.
  2. U.S.: Total confirmed cases as of 6 p.m. ET: 2,874,396 — Total deaths: 129,870 — Total recoveries: 906,763 — Total tested: 35,512,916Map.
  3. States: Photos of America's pandemic July 4 ICU beds in Arizona hot spot near capacity — Houston mayor warns about hospitals
  4. Public health: U.S. coronavirus infections hit record highs for 3 straight days.
  5. Politics: Former Trump official Tom Bossert says face masks “are not enough”
  6. World: Mexican leaders call for tighter border control as infections rise in U.S.
  7. Sports: Sports return stalked by coronavirus
  8. 1 📽 thing: Drive-in movie theaters are making a comeback.

Bolton's hidden aftershocks

Photo illustration: Sarah Grillo/Axios. Photo: Justin Sullivan/Getty Images

The news media has largely moved on, but foreign government officials remain fixated on John Bolton's memoir, "The Room Where It Happened."

Why it matters: Bolton's detailed inside-the-Oval revelations have raised the blood pressure of allies who were already stressed about President Trump's unreliability.