Localized Entertainment

The U.S. entertainment market has long been the world’s largest, but as it becomes increasingly saturated, a greater number of Hollywood filmmakers are plying their craft with a global audience in mind. China, in particular, has become a big box-office focus in the last few years. But other emerging markets such as Brazil, Korea, and Indonesia have also become important as their middle classes expand and consumption increases.

But creating localized entertainment, which caters to local markets adds another layer of complexity to the already elaborate art of filmmaking. In China, for example, film producers not only have to adapt to local tastes, they also have to get approval from the government, as the country only allows 34 foreign films a year to be screened. The approved films will then receive more scrutiny and are cut to reflect conservative Chinese values.

Despite the many hurdles, some studios still strain every nerve to ensure success in China. For example, producers of Transformers: Age of Extinction recruited a number of Chinese actors, shot scenes in Chinese cities and even included messages supporting the Chinese government.  All in all, the extra investment turned out to be money well spent. The movie made about $320 million in China and became the highest-grossing film in the country’s history.

For some, the above strategy seems a little too complicated and not everyone is willing to take this approach. Media companies such as Viacom, Sony Pictures, and 21^st Century Fox are all taking a different, more simplified approach: they invest in locally-produced content tailored for local audiences.

Viacom is the latest to step up its international presence. The media giant recently completed a deal with India’s Reliance Industries to take a half share in five entertainment channels that specialize in local-language soap operas. The move is part of the company’s initiative to ramp up investments in countries including the U.K., Brazil, and Spain.

Walt Disney also jumped into new cultural and linguistic territory in Argentina when it produced its first original telenovela titled Violetta in 2012. The series tells of a teenage girl’s struggles after she moves from Europe to Argentina. It has reportedly become one of Disney’s top five franchises in Europe and now appears in 140 countries in 15 languages.

Financial Times quoted Andy Bird, chairman of Walt Disney International as saying, “If we’re going to be relevant to consumers in a particular country it’s important that we supplement the global product—television shows, film, consumer products—with locally created ones.”

So as media companies vie for growth in overseas markets, we can expect to see a lot more original content being produced outside Hollywood but with Hollywood’s investment. Show producers still need to churn out compelling content, but it’s not necessarily in English or with an American all-star cast. To keep audiences glued to their screen, one important aspect must be considered—local sensibility.

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