Netflix Embraces Licensing Classic Third-party Content
Netflix has signaled a continuation of its strategy to license older content from third-parties, bringing classic shows and movies onto its streaming platform.
Last week, the company mentioned it “may have increased opportunities” to license more content “as the competitive environment evolves,” in a shareholder letter released alongside its third-quarter financial results.
The company stated, “We believe this will deliver additional value for our members, as well as for rights holders who benefit from increased awareness and revenue that Netflix delivers, in addition to the new life that success on Netflix can drive.”
Netflix Revives Strategy Focusing on Classic Content
Netflix spotlighted the performance of the legal drama “Suits” on its platform as co-CEO Ted Sarandos discussed the licensing strategy. “Suits” became available on Netflix in June, almost four years after its original nine-season run on the USA Network concluded, quickly gaining traction among subscribers.
The show clocked 1 billion viewing hours on Netflix from June 19 to Sept. 10, according to the company. Nielsen data reported by Netflix also ranked the program as the most-watched during those 12 weeks, beating any other film, original TV, or acquired TV content on streaming.
“Suits” is a great example of the impact of the Netflix effect that we can have because of our distribution footprint and our recommendation system,” Sarandos said.
“We were able to take ‘Suits,’ which had played on cable and had played on other streaming services, and pop it right into the center of the culture in a huge way, not just in the U.S. but all over the world.”
Now, a new “Suits”-related show is reportedly in the works at NBCUniversal.
Sarandos explained to analysts and investors that licensing, a tactic it has “always” used, has helped Netflix offer more content appealing to “a wide range of taste.”
“We can’t make everything, but we can help you find just about anything,” he added.
Recently, an agreement with Warner Bros-Discovery allowed HBO shows like “Ballers” and “Insecure” to be featured on Netflix’s platform. Sarandos noted these shows “were very successful on Netflix, and they popped into the top 10 on their originating network for the first time.”
Netflix data showed “Ballers,” starring Dwayne “The Rock” Johnson, had two back-to-back weeks in the platform’s top 10 for television in the U.S., ranking No. 3 in the week ending Aug. 20 and No. 9 in the following week.
HBO titles like “Six Feet Under” and “True Blood” are also slated to join Netflix’s catalog, with the former joining in November, as indicated by a Netflix post.
Netflix is engaging in licensing deals with other companies for TV series and movies as well.
“In one way or another, we’re in business with nearly every supplier, including our direct competitors,” Sarandos said last week. “And I think that we bring a ton of value to them.”
Previously, Netflix found major success with licensed shows like “Friends” and “The Office,” which have not been available on the platform in the U.S. for some years but gained many new fans while on the platform.
In the third quarter, the streaming giant tallied a total of 247.15 million subscribers globally, with roughly 77.32 million located in the U.S. and Canada.
With information from Fox News
