One should ideally do many things. Out of which, not repeating old mistakes holds a special place. But the American streamers seem to have forgotten that.
Media companies that previously sold their best content to Netflix at low prices may be repeating the same mistake. Although Netflix’s original shows get a lot of attention, the content they acquire from other companies is still a significant part of what subscribers watch. However, as these media companies focused on creating their streaming services and gaining subscribers, the availability of acquired content decreased. But now, things are changing.
According to some reports, struggling media companies in the streaming industry are selling their content to Netflix and other platforms to generate revenue. Warner Bros. Discovery, for instance, recently sold popular series like Insecure, Six Feet Under, and Band of Brothers to Netflix.
Several of Netflix’s competitors are dealing with huge debt. Consequently, the pressure to sell high-quality content to Netflix will only increase. While this may be unfavorable for the studios, it benefits Netflix.
Based on Nielsen data, acquired films and TV shows still make up over half of the total viewing time on Netflix in the United States.
The viewership of acquired content remains stable from quarter to quarter.
Although the viewing of Netflix’s original content fluctuates, it has shown long-term growth over the past two years. Nathanson also identified a pattern where viewers tend to binge-watch original shows when they are initially released, but the viewership quickly declines, dropping by about 6% from its peak.
Original content accounts for approximately 30% of Netflix’s viewership, with the top 15 shows driving about 29% of that viewership. However, due to the extensive volume of original programming on Netflix, there is still significant viewership for lesser-known shows.
Considering all these factors, it is suggested that Disney would benefit from combining its streaming services, Disney Plus and Hulu if they acquire Comcast’s remaining ownership stake in Hulu.