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In recent years, major film production companies have been shifting their focus towards creating content for Asian and Pacific-Islander communities. Companies such as Lionsgate, Netflix, and HBO Max have been leading this charge, with many of their productions first premiering on streaming platforms like Netflix and Hulu.
One notable example is Netflix's Asian-centered series and films, which have been making waves globally. These productions are often released directly on the streaming service, providing a platform for these stories to reach a wide audience.
The importance of U.S. content in the streaming market of many Asian countries cannot be understated. It is a crucial factor in acquiring and maintaining streaming subscriptions. Despite this, Asian Americans consume 27% more streaming content than the general population, indicating a growing demand for diverse content.
Streaming services have been responding to this demand by offering more screen time to Asian and Pacific Islander characters. According to data, this representation is more prevalent on streaming services compared to traditional broadcast or cable TV, with 10.3% of screen time dedicated to these characters on streaming platforms, compared to just 3.3% on cable TV.
The Chinese market, being the largest international box office for Hollywood, has been a point of focus for these companies. However, the Chinese government's recent announcement to reduce U.S. movie imports in response to U.S. tariffs has added a layer of complexity to this relationship.
Netflix dominates the Asian markets, with 50-75% of market share, largely due to the availability of local subtitles and dubs. The platform's self-reported data shows that South Korean content is second only to content from the U.S. in terms of most viewing hours on the platform.
Netflix has also made significant commitments to South Korean content, pledging to spend $2.5 billion by 2028 on such content. This investment is seen as a step towards addressing the multibillion-dollar opportunity that Hollywood is currently missing out on due to the lack of inclusion of Asian Americans.
The representation of AANHPI individuals can lead to more engagement and profits, according to a 2023 Nielsen report. McKinsey researchers have found that Asian Americans spend significantly less of their income on film and television than their peers from other racial groups, but would be willing to spend more if their experiences were represented more authentically on the screen.
However, Hollywood still has a long way to go in terms of inclusion, according to a study by the University of Southern California. The percentage of Asian characters with speaking roles in popular films has increased from 3.4% in 2007 to 15.9% in 2022, but there is still room for improvement.
The proposal of 100% tariffs on foreign-produced movies has potential negative impacts on Hollywood. It's still unclear what exactly these tariffs would mean for Hollywood, as it's uncertain if they would apply to U.S. companies that produce films abroad or to movies that are solely for streaming services.
Streaming giants have taken notice of the increased consumption of streaming content by Asian Americans, and it's clear that this trend is here to stay. The representation of AANHPI individuals is not just a social responsibility, but also a smart business move, as it can lead to increased engagement and profits.
