THE US ENTERTAINMENT PARADOX
Sustaining these massive content material libraries explains the shift of the US commerce steadiness. US-based streamers export much less as a result of they now retain extra of their content material for unique distribution on their very own streaming platforms. And so they import extra as a result of they purchase international content material in higher portions than ever earlier than.
For instance, Stranger Issues is produced by Netflix within the US. As such, it doesn’t present up in export figures. Squid Sport, then again, is a Korean export and reveals up in US import information.
Furthermore, Walt Disney has determined to retain the unique rights to its franchises, forgoing licensing gross sales. In 2020, the corporate licensed 59 per cent of its scripted sequence to 3rd events, 18 per cent in 2021, and solely 2 per cent in 2022.
All of the US streaming giants license and fee international content material. Netflix particularly has spent extra on worldwide content material than US programming since 2024 (US$7.9 billion versus US$7.5 billion). Therefore the creation of a paradox: US commerce information in audiovisual companies reveals a commerce deficit, but the US-based leisure business has by no means been so dominant globally.
There are comparable patterns in industries by which US-based multinationals are positioned on the apex of transnational provide chains. The denims that Levi Strauss imports from Bangladesh, the trainers that Nike imports from Vietnam, and the automotive elements Ford imports from Brazil all present up in US commerce statistics. However these items are, primarily, American-owned belongings.
About 70 per cent of commerce entails world worth chains (GVC), as uncooked supplies and elements cross borders a number of occasions earlier than being assembled right into a last product.
In in the present day’s world economic system, the complexity of most merchandise requires corporations to cooperate alongside transnational manufacturing networks. As companies and international locations concentrate on particular duties, GVCs are probably the most environment friendly manner of manufacturing items and companies. The streaming business merely mirrors these wider patterns.
