Matt Ross’ Post

👀 The Netflix H2 2023 viewing data report has arrived 👀 But what does it show? 🔍 Our analysts were quick to spot a 4% decrease in overall global viewer hours and an absence of top titles hitting similar figures as #TheNightAgent, #GinnyandGeorgia, or #TheGlory. 📺 But it's not quite as simple as the content not hitting the mark; shows like #OnePiece still achieved a large volume of viewing, just not quite as much as previous top titles. 💡 And the reason may not be one of quality, but one of account usage... The account-sharing crackdown has boosted Netflix's overall subscriber numbers and revenue, at the small and logical cost of account-level viewer hours. Simply put, if there are less people using your account, the account will watch less hours of content overall. Our research shows the high level of effectiveness of the account-sharing crackdown. For more information about this analysis and our take on the Netflix H2 report, please contact Matt Ross. Join the viewing revolution.

Talking about Netflix....I suppose their plans to discontinue sharing quarterly subscriber totals/growth numbers beginning in 2025 and instead report out time spent on platform data is a sensible shift for two main reasons. 1) They expect new subscriber growth to level off going forward. 2) They are transitioning increasingly to an ad-based revenue model and the total time spent watching correlates directly with ad-exposure. Well played...

"Introducing our latest innovation: the Netflix Dashboard! 📊 Dive deep into the world of entertainment with comprehensive insights on your Netflix favorites. Our dashboard offers a user-friendly interface to explore country-wise usage patterns, ratings, release years, and durations for both movies and TV shows. 🎬 Uncover the top 10 genres captivating audiences globally, and gain valuable insights into the ever-evolving landscape of content preferences. With detailed analyses highlighting differences between movies and TV shows and providing a breakdown of total content by year, our dashboard empowers you to make informed decisions and stay ahead of the curve in the entertainment industry. 🌟 Discover the power of data-driven entertainment with Netflix Dashboard! #Netflix #DataAnalysis #EntertainmentInsights"

Add this chapter to your revenue handbook: "Password Crackdown and Ad-tier Memberships: What Are They Good For?". For Netflix, they've both delivered the streaming giant's strongest first-quarter customer additions since the pandemic, surpassing expectations by adding 9.3 million subscribers in Q1, beating the forecast by nearly double. And like looking for spare change in between sofa cushions, this follows a strong Q4 that had a whopping 13 million net additions. When you consider Netflix's resurgence, it's rather fascinating because the company's strategy has been decidedly anti-customer. Think about it. Implementing revenue initiatives like its crackdown on password sharing and ad-supported tier, in addition to the recent price hikes on certain subscription plans would typically turn off customers especially in a space that suffers high churn rates. Yet, despite all that, the company's new subscriber rate is off the charts. The streaming business is highly competitive...and beyond Netflix, a consistent money loser. We're talking about major players like Disney+, Paramount+, and Warner Bros. Discovery. And throw Big Tech like Apple TV and Amazon Prime Video into the mix, it's a battle royale for dollars and eyeballs. Streaming services walk a tightrope: offering a wide variety of high-quality shows across genres is essential to keep subscribers engaged, but true differentiation comes from exclusive content – both of which are incredibly expensive. For Netflix, its reputation and brand along with its ability to put out a long list of hit series, as well as expanding its offerings into live events and videogaming do just that. For its competitors, the issue is whether they're catching up or falling behind. Given Netflix's current earnings and subscriber numbers, it would seem to be the latter https://lnkd.in/ggHzrzVW #netflix #streaming #subscription #memberships #revenue #recurringrevenue #digitalcontent

Just finished reading an intriguing interview with Netflix's CEO, and it got me thinking about our digital habits. "We're competing with sleep," he said. Wow! It's true, isn't it? How many times have we all stayed up late, binging our favorite shows? But here's what really caught my attention: despite the hype around offline viewing, Netflix sees it as a "modest feature." They believe that as networks improve, we'll simply click and watch without planning ahead. It's fascinating to see how streaming is evolving. With Netflix approaching 100 million customers, it's clear that online entertainment is booming. Yet, they're still looking up to YouTube and Facebook's billions of users! What do you think? Are downloads becoming obsolete? Is sleep our last frontier of 'me time'? Let's discuss! #StreamingTrends #DigitalHabits #NetflixInsights #FutureOfEntertainment

Analysts are anticipating a potential price increase for Netflix in 2024. The cited reasons include the evolving entertainment landscape and a surge in viewership. While such a move could be advantageous for Netflix, there is also a risk of subscriber loss.

Yes, content is King ... but ... looks like Hollywood was outwitted by a Netflix Password Crackdown Excellent analysis by Financial Times that looks at the fall and rise of Netflix over the last two/three years. Here are my key take-aways. As always I am trying to look at the reasons behind the reasons and almost always, I find that the problems are human in nature 😀 In 2022, Hollywood almost popped the champagne, expecting Netflix’s subscriber loss to bring them down. They thought the streaming giant was finally faltering. But in a brutal twist of irony, Netflix’s supposed Achilles’ heel—password sharing—became its greatest weapon. By cracking down, they added 45 million subscribers in just over a year, leaving Hollywood stunned (45 million is the population of Spain 😀) . The lesson ? : People WON'T pay for content ... until they have no choice 😀 Netflix understood this uncomfortable truth better than anyone. Meanwhile, Hollywood, with its bloated billion-dollar productions and fixation on "prestige," misread the room entirely. Paramount Pictures had to sell, Warner Bros. Discovery faced public calls for a breakup, and streaming services like The Walt Disney Company barely broke even. Legacy studios spent billions on content, hoping to recapture a shrinking audience. It didn’t work. Why? Because no amount of money can overcome the inertia of human laziness and resistance to change. While Hollywood clings to its glory days, Netflix re-built its base by exploiting the simplest of human flaws: convenience. That is not to say that content does not matter. After all, if Netflix's content was poor, the password crackdown would not have yielded anything. They didn’t just survive; they thrived. Their dominance isn’t just about streaming—it’s a masterclass in understanding people’s lethragy to adapt. And that’s the true failure: Hollywood’s refusal to learn the hard truths about what makes people tick. #Hollywood #StreamingWars #Netflix #EntertainmentIndustry #DigitalTransformation #BusinessStrategy #HumanBehavior #TechDisruption #MediaTrends #ConsumerPsychology #Innovation #Leadership #ContentCreation #NetflixStrategy #StreamingEconomy #CulturalShift https://lnkd.in/dGkQdaGp

#StreamingInsights Caught in the endless scroll on #Netflix trying to pick what to watch next? You're not alone! #NikhilKamath recently sparked a fascinating conversation on this very dilemma, and it got me thinking 🤔💭. Delving into the paradox of choice and decision-making fatigue on Netflix, I've come across some eye-opening insights that shed light on our digital consumption patterns. With over 238.3 million global subscribers and an ever-expanding content budget, Netflix is not just about what we watch but how we choose. Surprisingly, it takes us an average of 18 minutes to decide!😅 Dive into the details in my blog, It's amazing what you can discover about our digital age dilemmas. #NetflixScroll #DigitalAge #DecisionMaking

Really cool example of how Netflix builds and tests features. • Netflix uses its web player for A/B testing features. • Tests are rolled out to 100,000 users ("small" audience on the scale of Netflix). • KPIs: retention and hours watched. • If a tested feature doesn't improve KPIs, the feature gets removed (also an important lesson how not to bloat products with unnecessary features). The "Next episode" autoplay button has led to the biggest KPIs increase among all features they've tested. Impressive how a company of the size of Netflix has such a nimble approach for testing and adding value to the product. (via Jyotbir Lamba on X)

#onStrategy 🍿 Netflix won the streaming wars In its first-quarter 2024 earnings release on Thursday, Netflix significantly surpassed expectations by adding 9.33 million subscribers, bringing its global total to nearly 270 million. The company also exceeded Wall Street forecasts for both revenue and profits, while announcing that will no longer report subscriber numbers. 1/ When a company starts to hide its user's numbers it means it reached somehow a plateau (ie. Apple did the same at some point) 2/ Their ad-free prices will increase, and the ad-tier will remain the same (that means, will decrease due to inflation) 3/ Studios will come after Netflix to sell their films, but now Netflix has the leverage in the discussions. We already see movies from Sky Showtime or HBO on Netflix. The last point is the most important because looking at it makes you realize that Netflix is becoming the new cable bundle. Sources: [1] https://lnkd.in/dFm35tdd [2] https://lnkd.in/dw-DcNNf [3] https://lnkd.in/dUXFxADm 📸 App Economy Insights