Why Global Success Doesn't Guarantee Local Revenue

Why Global Success Doesn’t Guarantee Local Revenue

When Star Power Fall Short: A Hollywood Dream Gone Awry

Picture this: Quibi—the much-hyped short-form streaming platform backed by Hollywood heavyweights and billions in capital—makes a bold debut in 2020, aiming squarely at mobile-first audiences hungry for bite-sized entertainment. On paper, it seemed unstoppable: star-studded content, Hollywood production values, and a premise perfectly aligned with our on-the-go world. Yet, just months after launch, Quibi collapsed.

What went wrong? Certainly not a shortage of capital or celebrity power. The concept itself was innovative, responding to our ever-shortening attention spans. But if we look beyond superficial factors, we find a deeper reason for its failure: Quibi overestimated the power of a universally appealing product and underestimated the local realities of emerging media and technology markets. Instead of adapting revenue models to regional tastes, needs, and cultural nuances—key ingredients to sustained growth in Latin America, APAC, and the Middle East and North Africa (MENA)—Quibi plunged in without the strong local foundations that have propelled other streaming giants to success. The result was a spectacular downfall that reveals an overlooked truth of global expansion.

Why did Quibi Fail where others Thrived

So why did Quibi, seemingly engineered for modern consumption, crash so spectacularly while other streaming innovations—some with less buzz—have thrived in high-growth regions across the globe? Could it be that what looks like a sure bet in one market doesn’t necessarily translate to another? Is there a hidden formula that determines which streaming services flourish and which fail in emerging markets?

Perhaps it isn’t about content quality alone, but something far more nuanced—something that challenges the conventional wisdom that “a great product will always find its audience.”

Probing the Gaps: Research, Data and Local Wisdom

Emerging markets present a mosaic of cultural preferences, economic conditions, regulatory hurdles, and competitive landscapes. It’s tempting to think that success in North America or Europe guarantees a smooth ride in places like Mumbai, São Paulo, or Riyadh. However, the reality is far more complex, and companies ignoring local insights risk becoming the next Quibi.

Below are four critical dimensions that define success or failure in these dynamic regions:

1. Cultural Nuances

Streaming preferences aren’t universal. A marketing campaign that resonates with U.S. audiences might fall flat in APAC. Think of humor styles, language differences, or even the way people consume media—often late at night, or in microbursts between commutes and errands.
• In Latin America, a mobile-first focus is paramount. High smartphone penetration rates mean consumers are likelier to stream on their phones—so your interface, payment options, and data usage must be optimized accordingly.
• In MENA, cultural and religious observances significantly shape entertainment choices. Ramadan, for instance, can alter viewing patterns, requiring content and promotions to be adapted accordingly. Some platforms even modify release schedules or editorial decisions to respect local values.
• Netflix’s “Sacred Games” famously reshot scenes for Indian audiences, demonstrating that local sensitivities aren’t minor details but pivotal elements of success.

2. Economic Realities

Affordability remains a powerful gatekeeper in markets where disposable income is often lower than in Western economies. Even a few extra dollars on a subscription can be prohibitive.
• Multiple pricing tiers, mobile-only plans, and partnerships with telecom providers can reduce sticker shock.
• People in emerging economies may share accounts among family or friends, making scaling revenue trickier if you can’t adjust your pricing model accordingly.
• Some services experiment with ad-supported or hybrid models—offering partial access for free while upselling premium content—catering to limited budgets while still deriving revenue.

3. Competitive Intensity

Local players—whether telecom operators, regional streaming apps, or even “super-apps” that bundle everything from food delivery to ride-hailing—often understand their markets more intuitively than any foreign entrant can.
• In India, Reliance Jio’s immense telecom footprint powers its streaming service with data bundles. That localized advantage can dwarf a newcomer’s brand budget.
• Evaluating the density of regional “unicorns” (fast-growing startups) and established players provides insight into the level of market saturation and consumer loyalty.
• MENA’s Careem or Southeast Asia’s Grab leverage their existing user bases for cross-selling entertainment services. For an outsider, forging alliances with such platforms is often more cost-effective than building standalone distribution channels.

4. Regulatory Hurdles & Partnerships

Beyond cultural mores, formal regulations can shape everything from licensing deals to allowable content topics. Failing to grasp these nuances means risking legal challenges or public backlash.
• In some countries, local content quotas dictate that a certain percentage of streaming libraries must be produced domestically. Meeting these requirements may demand new partnerships with local studios and creators.
• Collaborative ventures can help reduce bureaucratic friction. Distributors, telecom operators, and local tech firms not only have established user bases but also better insight into rules, consumer tastes, and marketing channels.

Collectively, these factors emphasize one critical point: a brilliant product alone doesn’t guarantee success in emerging tech and media (TMT) markets. Instead, savvy adaptation—guided by thorough research and local alliances—usually separates the winners from the rest.

The power of Localized Revenue Growth Management

Far from being purely about star-studded shows or big budgets, the real magic lies in Revenue Growth Management (RGM), carefully recalibrated for each local context. For executives in the media and entertainment or broader TMT sector, the notion of RGM often conjures up images of sophisticated pricing software or advanced analytics. But the counterintuitive truth is that RGM only works if you combine those tools with deep local insights.

What is Localized RGM?

At its core, RGM aligns your pricing, packaging, promotions, and sales execution to extract the optimal revenue and profitability possible. When tailored by market and customer segment, it becomes a powerful engine for growth.

Why Traditional Market Research Falls Short

Traditional market analyses can flatten cultural nuances into neat charts that don’t capture the heartbeat of consumer preferences. Failing to incorporate intangible factors—like local payment methods, cultural celebrations, or aspirational branding—can lead to misguided strategies.

How nGülam’s Methodologies Help

Through our experience, methodologies and data-driven insights, nGülam guides B2B tech and media companies to test, learn, and iterate revenue models in real time. Rather than relying solely on static research, organizations use a combination of on-the-ground experiences and live analytics to refine their pricing or product-market fit.

For emerging TMT markets, iterative experimentation isn’t just wise—it’s essential. Each market has distinct triggers for user adoption, making a flexible, data-informed approach to revenue management the difference between fleeting interest and enduring success.

The Road Ahead for Industry Leaders: Transforming Insights into Action

So what does this mean for C-suite executives considering global expansion strategies or evaluating new growth regions in the media and tech space? The lesson from Quibi’s implosion—and the triumphs of carefully tailored streaming models—is profound:

Move Beyond One-Size-Fits-All Approaches
Even for global powerhouses, copy-pasting a U.S. or European model to emerging markets is a recipe for missed opportunities. Tailor your offerings—from product features to marketing messages—to each region’s cultural and economic realities.
Institute Data-Driven Decision Making
Accurate, real-time data and analytics allow you to track audience preferences, test pricing tiers, and adjust marketing in response to evolving consumer behavior. For instance, you might discover an overlooked mobile payment method in Latin America that dramatically increases subscription conversions.
Forge Strategic Partnerships
Entering new markets alone can be a long, expensive learning curve. Collaborating with established local players—telecom providers, content producers, “super-app” ecosystems—can grant instant brand recognition, distribution networks, and regulatory clarity. These partnerships reduce risk and grant your product immediate credibility.
Develop Cultural Agility
Corporate teams must cultivate the empathy and agility to understand diverse norms, traditions, languages, and consumption habits. Small gestures—like redesigning app interfaces for right-to-left scripts in MENA or timing promotions around major local events—can yield disproportionately positive results.
Optimize Speed and Adaptability
Emerging markets are often in flux—economic conditions change quickly, as do consumer expectations. Companies that move first to address new demands, or pivot fastest in response to local feedback, often capture market share early and lock in consumer loyalty.
Implement AI Audit Trails and Bias Mitigation
As artificial intelligence increasingly shapes product recommendations, content curation, and even pricing, hidden biases can harm consumer trust. An AI audit trail guards against unintended discrimination or cultural insensitivity. In emerging markets, trust is crucial, so mitigating bias can make or break a new launch.

By embracing these principles, leadership teams can master the elusive balancing act of delivering content consumers desire at a price they can afford—while also keeping up with regulatory changes and fierce competition. This is where specialized guidance, such as fractional sales leadership or localized RGM expertise, provides a strategic edge. Instead of relying on sporadic undertakings, dedicated teams can establish—then continuously refine—the frameworks necessary for resilient, sustainable growth.

Will you adapt or Disappear?

As media and technology executives navigate the diverse landscapes of emerging TMT markets—where cultural norms shift rapidly, economic disparities shape buying decisions, and regulatory environments demand constant vigilance—the question emerges: Will you localize your revenue strategy to fully embrace these complexities, or will you chase the mirage of a “one-size-fits-all” approach and risk unraveling like Quibi?

True success hinges not just on creating compelling products but on mastering the hidden advantages of local partnerships, data-driven experimentation, and flexible revenue models. The next frontier of growth lies in these emerging regions, ripe with opportunity for those willing to adapt. In a world that rewards strategic agility, the path is clear: unify your global ambitions with localized strategies, refine your approach iteratively, and empower your teams to course-correct in real time.

If you’re ready to transform your global expansion into a sustainable, thriving reality—while avoiding the pitfalls that took down once-promising platforms—consider how we and a robust RGM framework can support your journey.

The key takeaway is simple yet profound: success in new markets isn’t guaranteed by global brand recognition but earned by an unwavering commitment to meeting local needs. After all, true thought leadership emerges when you look beyond the glitz of universal appeal and harness the untapped power of local insight.