Netflix’s dominance: A deep dive into the streaming giant’s latest data
A peek behind the curtain
Ted Sarandos, co-CEO of Netflix, recently shared some eye-opening insights at the Fast Company Innovation Festival in New York. With nearly 280 million paid subscribers worldwide, Netflix continues to lead the streaming industry. This week, Sarandos previewed Netflix’s latest Engagement Report, a biannual data release that showcases views and total viewing hours for 99% of the content on the platform.
Streaming hours soar
In the first half of 2024, Netflix users streamed a staggering 94 billion hours of programming. This marks a slight increase from the 93 billion hours recorded the previous year. Sarandos emphasized the transparency of these figures, expressing hope that other streaming services would follow suit. However, the reality is that Netflix’s competitors, such as Prime Video, Hulu, Disney+, and Max, are unlikely to release such comprehensive data, as it would highlight the significant gap between them and Netflix.
The numbers game
Netflix’s Engagement Report and Top 10 lists are based on self-reported data, which is not verified by third parties. However, independent data consistently shows that Netflix’s share of total TV viewing is at least double that of its closest rival, Amazon’s Prime Video. For instance, in August 2024, despite a 39% increase in NBCU’s Peacock share due to the 2024 Paris Olympics, Netflix remained the leader in subscription video.
The competition’s selective transparency
Other streaming services, like Warner Bros. Discovery’s Max and Disney’s Hulu, have adopted most-viewed lists similar to Netflix. However, they are unlikely to release a massive viewing breakdown like Netflix. Instead, they selectively release viewing metrics to highlight the performance of hit titles. For example, Amazon claimed that the “Fallout” series garnered 65 million viewers in its first 16 days on Prime Video.
A shift in strategy
Interestingly, Sarandos was initially against releasing such granular data. However, during Netflix’s Q3 2023 earnings discussion, he acknowledged the need for transparency, especially for creators who felt trapped by traditional ratings and box office metrics. By leading the charge on Top 10 viewing data, Netflix aimed to create a more transparent industry.
The first big data drop
Two months later, Sarandos announced Netflix’s first massive data drop, which included licensed titles for the first time. This move was partly driven by the SAG-AFTRA and WGA strikes, where access to viewing data was a key bargaining issue. Sarandos believed that providing more information would create a better environment for guilds, producers, creators, and the press.
Addressing creators’ concerns
At the Fast Company event, Sarandos explained that the Engagement Report was a response to creators who felt they were not adequately informed about their content’s performance. By sharing this data, Netflix aimed to address these concerns and demonstrate its significant reach and engagement.
Compensation and performance
Netflix pre-negotiates the value of content deals based on expected performance, shifting the risk to the company. Sarandos argued that this approach benefits creators, as they are compensated as if their content were a massive hit every time. He acknowledged that change can be uncomfortable but emphasized the mutual dependence between Netflix and great storytellers.
The YouTube comparison
Sarandos also addressed the notion that YouTube is Netflix’s chief rival in the streaming wars. He pointed out that the two companies have different business models and curate different types of content. Interestingly, YouTube serves as a great outlet for Netflix’s trailers. Together, Netflix and YouTube account for 20% of all viewing, but Sarandos is focused on capturing the remaining 80%.
A motivating insult
During his talk, Sarandos recalled a famous remark by Time Warner CEO Jeff Bewkes in 2010, who compared Netflix to the Albanian army. This comment fueled Netflix’s determination to succeed. Sarandos chuckled as he recounted how being called the “Albanian army” motivated the Netflix team to prove their critics wrong.
Netflix’s biggest hits and misses
Despite mixed reviews, Netflix’s Atlas and Mother of the Bride have emerged as two of the platform’s biggest movies of 2024 so far. This highlights the unpredictable nature of content performance and the importance of data in understanding audience preferences.
Most-viewed TV shows of 2024
Netflix’s most-viewed TV shows in the first half of 2024 include Fool Me Once, Bridgerton, and Baby Reindeer. These titles have captivated audiences worldwide, showcasing the platform’s ability to deliver diverse and engaging content.
For more information and to watch trailers, check out the following links:
Final thoughts
Netflix’s transparency in sharing viewing data sets a new standard in the streaming industry. By providing detailed insights into content performance, the company aims to foster a more transparent and collaborative environment for creators, producers, and viewers alike. As the streaming wars continue, Netflix’s commitment to data-driven decision-making and audience engagement will likely keep it at the forefront of the industry.