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Netflix Licensed Content Generates 80% of US Viewing, Study Finds (variety.com)

Posted by msmash on from the closer-look dept.

Netflix is spending a pretty penny on original entertainment -- but while that stuff grabs most of the headlines, it's actually licensed titles like TV show reruns that still form the core of the company's streaming business. From a report: That's according to a data analysis from 7Park Data, which found that 80% of Netflix U.S. viewing is from licensed content with 20% from original shows like "House of Cards" or "Stranger Things." The firm also found that 42% of Netflix subscribers watch mostly licensed content (95% or more of their total streaming). Just 18% of Netflix's U.S. streaming customers are "originals dominant," whose viewing comprises 40%-100% of originals, according to 7Park. The data is for the 12-month period that ended September 2017.

19 of 109 comments (clear)

  1. On the other side of the coin: by GrandCow · · Score: 5, Interesting

    Netflix original content now drives 20% of viewership.

    That's goddam amazing considering how long they've actually been making original content. OPs title tries to make this seem like a bad thing, it's not. Were they supposed to take 50% of all views within a couple years?

    --
    "Well kids, you tried your best, and you failed. The lesson is, never try." -Homer Simpson
    1. Re:On the other side of the coin: by rtb61 · · Score: 3, Interesting

      There is quite bit of difference between making content and paying a production house to make content for you. Still quite an impressive list https://en.wikipedia.org/wiki/... and it goes on https://media.netflix.com/en/o.... Of course http://www.news.com.au/technol..., NewsCorpse who own Fox, think it is a really bad idea, competing against their content is an extremely bad idea.

      Now that explains why Netflix went from friend to last millenniums content dinosaurs to being the enemy to be cut off from content (I dare say, the more popular Netflix become the more they wanted to charge Netflix, Netflix's response fine, we will make our own, see you at the bargaining table).

      --
      Chaos - everything, everywhere, everywhen
    2. Re:On the other side of the coin: by ShanghaiBill · · Score: 4, Insightful

      Netflix original content now drives 20% of viewership.

      Up from 12% a year ago. So the OC portion of their business is growing rapidly. According to TFA, they spent $8B on content last year, but it doesn't say how much they spent on licensed content vs original content. Their 2017 revenue was about $12B, so 2/3 of that went to pay for content.

    3. Re:On the other side of the coin: by zifn4b · · Score: 3, Funny

      That's goddam amazing considering how long they've actually been making original content. OPs title tries to make this seem like a bad thing, it's not

      Paid for by your friends at the cable companies. We're just looking out for your best interest which is paying 10x the premium for less quality content and don't forget our wonderful advertisements!

      --
      We'll make great pets
    4. Re:On the other side of the coin: by Wild_dog! · · Score: 2

      67% growth year to year then... that is pretty amazing.
      Bet the rest of the content makers would hope for such explosive growth year over year.

      Combine that with making a sizable profit to boot and there-in lies a recipe for a new paradigm for how people consume content in the future.

    5. Re:On the other side of the coin: by ArhcAngel · · Score: 3, Insightful

      The problem is though, that they are increasing OC at the expense of catalogue size.

      They aren't sacrificing anything. The studios they license content from are pulling content or increasing the the licensing terms to exorbitant amounts as they try to capitalize on Netflix's success or are terrified of it cannibalizing theirs...which in some areas it is. Netflix's OC of the Marvel characters was unexpectedly a huge hit. Which may explain why Disney is taking all of their content and rolling out their own competing streaming service.

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    6. Re:On the other side of the coin: by Oswald+McWeany · · Score: 2

      They aren't sacrificing anything. The studios they license content from are pulling content or increasing the the licensing terms to exorbitant amounts as they try to capitalize on Netflix's success or are terrified of it cannibalizing theirs...which in some areas it is. Netflix's OC of the Marvel characters was unexpectedly a huge hit. Which may explain why Disney is taking all of their content and rolling out their own competing streaming service.

      Every budget is a sacrifice. If you spend more creating original content, obviously you aren't spending that money on existing content. It very well might be true that providers are yanking content away or raising costs; but it's also true that Netflix is no longer as willing to spend as much on non-original content and their budget has been redirected. It's quite astonishing the lack of variety on Netflix compared to 10 years ago. It used to be if you remembered a show you once watched (or failed to watch but wanted to), you could look it up on Netflix and it was almost guaranteed to be there. Nowadays it is almost guaranteed not to be.

      --
      "That's the way to do it" - Punch
    7. Re:On the other side of the coin: by ArhcAngel · · Score: 2

      The problem with that is each content provider now wants to be paid directly. Meaning a show I was getting on Netflix is on another service which wants my ~$10 a month for access to their entire lineup when all I want is the one show they used to license to Netflix. If I watch 10 shows in total I am now paying over $100 month which was what cable cutting was supposed to prevent. I foresee a backlash in the near future where content providers will learn (they won't actually learn they'll just blame pirates) they have cut off their nose to spite their face. Paramount is already flaunting this with their Star Trek pre-sequel. I doubt it is doing as well as they claim and I'm not about to subscribe just for one show.

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
  2. Duh? by TFlan91 · · Score: 4, Insightful

    Most of Netflix's content is licensed material, it would make sense that viewed content matches the same rough estimate of percentages.

    I mean, they say it themselves, Netflix is *pushing* their original content and ramping it up. The numbers in those campaigns start low and then get high.

    Who watches House of Cards or Stranger Things more than once, twice at most, in a given decades span of time, and this survey was 12 months long.

    1. Re:Duh? by jon3k · · Score: 2

      This honestly looks like a hit piece. The fact that 20% of the content viewed on Netflix is Netflix original content is amazing, and growing very fast. I'd love to know what percentage of content Netflix's content represents out of the entire library. Probably a fraction of one percent.

  3. OK, but what does Netflix Original mean? by jools33 · · Score: 2

    OK, but what does Netflix Original mean?

    Currently I'm watching "Requiem" - a Netflix Original (according to Netflix), that I last noticed running on the BBC (BBC Wales), and was produced by the BBC, and was on BBCiplayer. So not really originally Netflix or?

    1. Re:OK, but what does Netflix Original mean? by Anonymous Coward · · Score: 4, Informative

      Netflix participates in production of original material, but also the other parties have rights of ditribution.

      Only a part of the netflix original content is netflix exclusive.

      in other words:

      original != exclusive distribution.

    2. Re:OK, but what does Netflix Original mean? by Wild_dog! · · Score: 2

      I think Netflix buys into the production. Sometimes they just buy out an already popular show and take over production for the future. This has happened for some shows that were about to cease being produced, but Netflix picked them up and extended their production.

      Reminds me of the rebranding at Trader Joes. If a product is very successful in their store.... then they will repackage it and sell it in their store, but under their own label.

      Most Original content is all Netflix however.

      So far their content is oddly and consistently of a fairly high quality. They are making some interesting things that I would not expect to see.
      A month or so ago I watched an Arabic post apocalyptic movie that was entertaining. I had never seen a movie in Arabic. And the storyline was much as one would expect from the western world. I hope they keep making films by people from everywhere in the world. I like new perspectives.

    3. Re:OK, but what does Netflix Original mean? by Carewolf · · Score: 2

      for example....?

      I saw it in Denmark when visiting. An old series for a local Danish tv-station was on Netflix marketed as Netflix original. It even still had the original TV station's logo in the corner (because old crappy content).

      I don't see stuff that old regularly, but for content with "Netflix Original" moniker that Netflix had no part in producing, there is a small subset of a few hundred of them here: https://en.wikipedia.org/wiki/...

      These television shows, even though Netflix lists them as Netflix originals, are shows that have been aired in different countries, and Netflix has bought exclusive distribution rights to stream them in other various countries. They may be available on Netflix in their home territory and other markets where Netflix does not have the first run license, without the Netflix Original label, some time after their first-run airing on their original broadcaster.

  4. Study finds people don't watch unavailable content by Anonymous Coward · · Score: 2, Funny

    I wonder what the % would be if Netflix actually had all content available.

  5. why does the summary suggest this is negative? by gravewax · · Score: 2

    Those aren't bad numbers, they are bloody astounding given how small a percentage the original content is of the entire library. That pretty well confirms that their strategy has been highly successful which I am a little surprised at as there really isn't that much original stuff that is any good.

  6. Re:Exactly! by l0n3s0m3phr34k · · Score: 3, Informative

    Sucks to be you / them, because it's the last "couple of years" that Netflix has really hit a decent scifi stride. "Stranger Things", "Altererd Carbon" (what the new Blade Runner should have been like), "Lost in Space", all their Marvel series...

    But I'm assuming your a troll because your posting anon.

  7. Re: Exactly! by Uberbah · · Score: 2

    Their shitty standup comedy sp3cials alone put number every good piece of original content.

    Have you tried....not....watching them? I would projectile vomit if I were tied to a chair and forced to watch Fuller House. So I skipped over it on my way to the second season of Jessica Jones.

  8. Re: Exactly! by nedlohs · · Score: 2

    So what? Don't watch the ones you don't like and watch the ones you like.

    In other news, you won't like the vast majority of music on [insert music service/record company/etc here]. You won't like the vast majority of books published either. You will see no use or value in the vast majority of software published. You won't like the vast majority of movies released. Amazingly you can just listen/read/use/watch the ones you do see as good/useful/whatever.