In the last times, Netflix has been involved in several controversies. In addition to charging for password sharing and other tactics to generate profit for the platform, recently, Ted Sarandos and Greg Peters, CEOs of the streamingtalked about a controversial topic of the company: series cancellations.
In an interview with the portal Bloomberg Published last week, Sarandos and Peters also commented on their new challenges in the role previously played by Reed Hastings, one of the founders of Netflix. According to the duo, No series that achieved great success has been canceled so far..
“Many of these shows [cancelados] had a good position [no streaming]but they spoke to a very small audience and had a very large budget”, argued Sarandos.
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“The key to this is that you have to be able to speak to a small audience on a small budget and a large audience on a big budget. If you do it well, you can do it forever,” the CEOs emphasized.
Greg Peters and Ted Sarandos. (Peter Yang/Bloomberg/Playback)Source: Peter Yang/Bloomberg
In recent years, several series have not been renewed for new seasons due to the platform’s internal metrics. It is worth noting that they still sound like a mystery to most of the media. In addition, there are other productions that grow a lot in comments on the networks, but take a while to have their renewal announcement confirmed.
How does Netflix define its successes and failures? Understand!
Working with hypotheses, Sarandos’ speech during the interview reveals some curious questions. Somehow, streaming platforms can afford to feature tons of niche content. The question is what the cost of an original production has increasingly mattered to investors.
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Thus, it is quite possible that, internally, success is measured using a formula that manages to identify the return on consumption in view of the number of hours watched and also the number of unique views in relation to the initial budget, including production costs. and marketing.
Unlike television, where the audience must always be disclosed on behalf of advertisers, on Netflix this does not seem to be such a relevant thing. And previously, the platform released its success numbers with the number of views of the productions. This is how, for example, we learn of the hearing, in its own terms, of Round 6 (2021).
What is your opinion on this matter?