Why’s it so hard to figure out how many people watch Stranger Things?
Sep 15, 2023
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Maya Hawke, known for her role in Stranger Things and daughter of Hollywood stars Uma Thurman and Ethan Hawke, joins Lucas Shaw, managing editor at Bloomberg News, to tackle the mystery of Netflix's elusive viewership data. They discuss how this lack of transparency impacts artists' compensation and raises broader questions about evolving entertainment dynamics. The conversation dives into the complexities of streaming metrics and their implications for the industry, highlighting the tensions between artistic integrity and profit-driven motives.
The lack of transparency in viewership data on streaming platforms like Netflix has created uncertainty and challenges for content creators and their ability to gauge the success and reach of their shows.
The rise of streaming platforms has disrupted the traditional ratings system, leading to a lack of transparency in the industry and raising concerns about the stability and future of the streaming industry.
The streaming industry is undergoing reevaluation and faces challenges of oversaturation, profitability, and the evolving expectations of viewers, prompting potential changes in transparency, compensation, and overall viability.
Deep dives
Streaming and the Obscurity of Viewership Numbers
The practice of streaming shows and movies on platforms like Netflix has led to a lack of transparency regarding viewership numbers. This lack of data has created a sense of mystery around the success and popularity of certain shows, with actors, writers, and industry professionals wanting to know how many people are actually watching. Initially, the absence of ratings and viewership data was seen as a positive change, breaking free from the traditional metrics of success. However, as streaming services became more established and powerful, the need to understand the reach and impact of shows increased. The secrecy around viewership numbers raises questions about the financial implications for actors and writers, as well as the overall stability and future of the streaming industry. While some argue that streaming companies keep numbers hidden to maintain leverage in negotiations and avoid higher payouts, others speculate that revealing poor-performing shows could negatively impact investor sentiment. The ongoing Hollywood strike and industry shifts may lead to changes in how streaming companies handle and disclose viewership numbers, potentially providing greater insight into the success or failure of shows.
The Evolution of Ratings and Nielsen
The advent of streaming platforms like Netflix has disrupted the traditional ratings system, which was the primary method of measuring viewership in the broadcast TV and film industry. Nielsen, the prominent ratings measurement company, first started measuring radio listenership and later expanded to television. Ratings played a crucial role in determining advertising revenue, inform networks about their viewership, and served as a reference point for success or failure. However, streaming services brought about a change in this landscape, as they did not rely on advertising and had different revenue models. Netflix, in particular, refrained from publishing viewership numbers, which was perceived as freeing for content creators, as decisions were no longer based on ratings but on artistic freedom and initial positive reception. This shift challenged the traditional television broadcast model, but also raised questions and concerns about the lack of transparency in the industry.
The Shift in the Entertainment Industry Landscape
The rise of streaming platforms has ushered in a period of significant change and uncertainty in the entertainment industry. The abundant availability of TV shows and movies on various streaming services has disrupted traditional business models, creating a flooded market with an overwhelming amount of content. The economics of the industry have become increasingly complex, with investment in costly projects and the need to compete for viewers' attention. The industry has seen a wave of consolidation among media companies as they navigate this changing landscape. While streaming remains a prevalent mode of entertainment consumption, the stability of the industry and the strategies adopted by streaming companies are subject to ongoing scrutiny and evaluation. The shifts and challenges faced by the industry impact not only content creators but also viewers and investors alike.
The Impact of Obscured Data on Content Creation
The lack of transparency in viewership data has had repercussions for content creators and their ability to understand the success and reach of the shows they produce. It has become increasingly difficult to gauge the popularity and impact of streaming shows without access to accurate viewership numbers. This lack of information can make it challenging for creators to negotiate fair compensation and make informed decisions about future projects. While streaming platforms like Netflix have occasionally provided limited data and feedback to their creative partners, the absence of comprehensive viewership numbers has created a sense of uncertainty. Content creators face the dilemma of not knowing if their shows are succeeding or failing, leading to questions about the financial sustainability and viability of the current streaming model. The push for greater transparency in viewership data may have far-reaching implications for the future of content creation in the streaming era.
The Future of Streaming: Challenges and Opportunities
The streaming industry is undergoing a period of reevaluation as it grapples with the challenges of oversaturation, profit margins, and the evolving expectations of viewers. The explosive growth of streaming services has resulted in an abundance of content, leading to concerns about the sustainability of the business model and the profitability of individual shows. While streaming platforms initially disrupted traditional ratings and revenue systems, the need for financial stability and the desire to attract top-tier talent have prompted some reintegration of standard industry practices. The ongoing negotiations and strikes in Hollywood indicate a potential turning point in how streaming companies address transparency, compensation, and the long-term viability of the industry. These developments will shape the future of streaming and determine the extent to which it continues to revolutionize the entertainment landscape.
Maya Hawke, of Stranger Things, would like to know why won’t Netflix just tell her how many people watch the show? Plus the question underneath that question … might the internet have broken our TV industry? We get answers with help from Bloomberg’s Lucas Shaw.
