Netflix Co-CEO Urges Competitors to Share Viewership Data

During a recent Fast Company conference held in Manhattan, Netflix’s co-CEO, Ted Sarandos, addressed an ongoing issue within the streaming industry: the lack of transparency regarding viewership numbers. Sarandos is actively encouraging other streaming platforms to release similar metrics, as they could promote fairness for creators and talent involved in the production of content.

Streaming Industry Context and Challenges

Sarandos highlighted the ongoing discontent among writers and actors during labor strikes, particularly their frustration over not having access to the viewership data for their shows. In response to this sentiment, Netflix is set to disclose viewership numbers for its most popular shows on Thursday, following their semi-annual data release schedule.

“This serves as a response to those who are saying, ‘I wish I had insight into how my content is performing,’” Sarandos remarked. “I wholeheartedly agree that withholding such information was unjust.” The purpose behind releasing these figures is to ensure that talent, agents, and the media have the necessary data to determine what shows resonate with audiences and which fall short in terms of engagement.

Commitment to Transparency Amid Criticism

Sarandos emphasized his commitment to transparency by stating, “I don’t believe we could be any more open than this.” However, when pressed on Netflix’s decision to stop revealing subscriber counts starting 2025, he noted that this metric no longer holds relevance due to the introduction of various subscription tiers, each with different pricing. As a result, subscriber statistics do not directly correlate with revenue or profit, despite the streaming service boasting approximately 280 million subscribers.

Engagement Metrics Take Center Stage

In the upcoming streaming report to be released on Thursday, Sarandos revealed that Netflix users streamed a staggering 94 billion hours of content in the first half of the year, marking an increase from earlier reports. He asserted that “engagement is likely the most significant metric” when gauging a service’s performance. Sarandos also voiced his belief that Netflix can potentially double its subscriber base, largely driven by the integration of live events, including live sports, exemplified by the NFL games scheduled for Christmas Day.

A Future of Growth and Competition

He elaborated that although Netflix currently penetrates 280 million households globally, even if that number doubled, it would still be less than the viewership numbers of traditional paid television during its peak. Sarandos is confident that Netflix provides a superior product and business model compared to those former television giants.

Commenting on YouTube, regarded as a central competitor in the realm of screen time, Sarandos noted that both companies enjoy similar metrics in terms of revenue, viewer engagement, and profitability. However, he pointed out that YouTube has advanced advertising capabilities and predominantly features user-generated content, which results in fewer financial obligations and regulatory hurdles. While both platforms capture about 20 percent of screen time, Sarandos remains focused on expanding Netflix’s reach into the remaining 80 percent of that market.

Addressing Concerns About Compensation for Creatives

When questioned about the responsibility Netflix bears towards the broader creative community, especially in light of the backlash against its payment models, Sarandos asserted that Netflix and the creative community are “mutually dependent.” He expressed his belief that there exists a certain “romanticism” in clinging to traditional film models, whereas he believes that the contemporary model is dominant as it shifts more of the financial risk onto Netflix. This means the platform takes on costs for production and talent, negotiating salaries upfront as if the project is destined for success.

“My aspiration is for all creatives to attain wealth and recognition. We are striving to provide them with that opportunity, and if they excel at their craft, success will surely follow,” Sarandos expressed passionately.

Leveraging AI for legal Clarity

In navigating the complex landscape of viewership data and its implications for compensating talent, AI legalese decoder can provide essential support. This innovative tool can help stakeholders, from writers to agents, decode complex legal jargon and contracts, ensuring they fully understand their rights and the terms tied to viewership metrics. By empowering creatives with clear and concise legal insights, AI legalese decoder can foster a more equitable conversation around pay and revenue transparency in the ever-evolving streaming sector.