Ted Sarandos on Netflix’s New Era of Data Transparency
Dec 13, 2023
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Ted Sarandos, Netflix co-CEO, joins Matt to discuss Netflix’s new data transparency report. They explore the impact on the streaming industry, the success of original programming on Netflix, and speculate on the potential sale of Paramount Studios.
Netflix's release of 'What We Watch' engagement report marks a significant step towards transparency by revealing full viewership data for a six-month period of all content, aiming to provide greater insight into viewership trends and the success of Netflix's content.
Netflix's shift towards transparency in viewership data reflects a new strategy aimed at fostering collaborative relationships with content creators, building trust, and establishing a fairer basis for deal-making, potentially influencing the negotiating power within the streaming industry.
Deep dives
Netflix Announces Release of 'What We Watch' Engagement Report
Netflix has announced the release of 'What We Watch,' a new engagement report that will reveal full viewership data for a six-month period. This move towards transparency comes amidst pressure from advertisers, the guilds, and the talent community. The report will cover all of Netflix's content that generated more than 50,000 hours of viewing from January to June of this year, revealing the top-performing shows and movies, including both originals and licensed content. It marks a significant step forward in providing greater insight into viewership trends and the success of Netflix's content.
Engagement is Key: Viewership Metrics and Netflix's Focus on Joy
Netflix's co-CEO, Ted Sarandos, emphasizes the importance of engagement as a key metric for success. He believes that viewership reflects the level of enjoyment experienced by audiences, and that keeping viewers hooked throughout the runtime of a show or movie is crucial. Sarandos argues that winning and maintaining audience engagement is more important than measuring other metrics like hours viewed or completion rates, as it indicates the impact and value of the content. He highlights the ability of Netflix originals to draw significant viewership, even in comparison to long-running licensed series, demonstrating the platform's power to capture mainstream audiences.
The Shift in Netflix's Transparency Strategy
Netflix's decision to provide more transparency regarding viewership data represents a significant shift in their strategy. Co-CEO Ted Sarandos acknowledges that withholding detailed viewership information from talent and the industry has created an atmosphere of mistrust. By unveiling comprehensive viewership data, Netflix aims to foster more collaborative relationships with content creators, build trust, and eliminate suspicions of secrecy. Sarandos believes that this move towards transparency is a natural evolution, bringing Netflix more in line with established media segments where viewership data is routinely disclosed, such as music, box office numbers, and television ratings.
The Impact and Implications of Netflix's Transparency
Netflix's increased transparency has implications beyond satisfying audience curiosity. The release of detailed viewership data will likely influence the negotiating power between Netflix and its talent, providing a fairer and more informed basis for deal making. Additionally, the move towards transparency challenges the streaming industry as a whole, potentially encouraging other companies to follow suit and disclose their viewership data. While it remains to be seen if other industry players will adopt similar practices, Netflix's commitment to transparency sets a new standard and may lead to a more open and accountable streaming landscape.
Matt is joined by Netflix co-CEO Ted Sarandos and Bloomberg’s Lucas Shaw to discuss Netflix's newest expansion into data transparency, called “What We Watched: A Netflix Engagement Report,” a biannual report covering six months of streaming habits on the platform across more the 18,000 shows and movies between January-June 2023. Matt and Lucas dive into the data and ask Ted about Netflix’s shift in strategy, the downstream effect on the rest of the streamers, and how this will alter the deal-making market for creators. Matt finishes the show with a prediction about the fate of Paramount Global.
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