Quiver Quantitative - Netflix (NASDAQ:NFLX), the streaming giant, has taken a groundbreaking step by releasing its first comprehensive engagement report, offering an unprecedented look into the viewership of over 18,000 titles. This move marks a significant shift in Netflix’s approach, as the company has historically been reticent about sharing specific data on its programming. The report covers the first six months of the year and includes both Netflix originals and licensed content. It reveals that the company's top program during this period was “The Night Agent,” which accumulated over 800 million hours viewed. This transparency initiative, releasing a report that accounts for 99% of all viewership on Netflix, is a response to the demands for greater insight into show performance, particularly from the Writers Guild of America.
Netflix's decision to provide detailed viewership statistics reflects a broader change in its relationship with the creative community and its subscribers. Co-CEO Ted Sarandos acknowledged that the company's previous protectiveness over its data had fostered a sense of distrust among content creators. By making this data public, Netflix is not only addressing these concerns but also adapting to the evolving demands of the entertainment industry. This change is particularly significant in the context of the recent Hollywood strikes, where calls for heightened transparency were prominent.
Market Overview: -Netflix's stock saw a slight increase following the release of the report, indicating positive reception from investors. -The broader market remained relatively stable, suggesting the news did not significantly impact other sectors.
Key Points: -Netflix released its first-ever "What We Watched" report, revealing viewership data for over 18,000 titles. -This move addresses long-standing concerns from creators and the Writers Guild of America about viewership transparency. -The report will be released twice annually and covers 99% of all viewing, encompassing almost 100 billion hours. -"The Night Agent" emerged as the most-watched show with 800 million hours viewed, followed by the film "The Mother." -Originals accounted for 55% of total viewing, highlighting their importance to Netflix's success.
Looking Ahead: -Increased transparency in viewership data could lead to: -Stronger relationships with creators and fairer compensation. -Opportunities for targeted advertising partnerships based on audience insights. -Improved decision-making for content production and acquisitions. -Enhanced trust and collaboration within the entertainment industry.
The "What We Watched" report, set to be released biannually, will rank nearly all Netflix shows and movies by the number of hours viewed. This level of transparency is a strategic move by Netflix to build stronger relationships with creators and guilds, as well as to respond to the needs of advertisers, especially following the launch of its advertising tier. Sarandos emphasized the importance of this data in decision-making and its implications for the company's public accountability.
Netflix's comprehensive viewership report not only provides valuable insights into audience preferences but also signals a new era of openness in the streaming industry. The detailed breakdown of viewing statistics for a vast array of titles, accounting for almost the entirety of Netflix's viewership, demonstrates the company's commitment to greater transparency. This move is likely to impact how the streaming service interacts with creators, guilds, and advertisers, setting a precedent for other platforms in the industry.
This article was originally published on Quiver Quantitative