Netflix seemingly ‘gives up’ great films and TV series. Well, when we say give up, we mean sell them for an extortionate amount of money. And we bet they’re happy they didn’t do that for the current number one series, Adolescence, which has remained #1 in the ‘Top 10 Programs’ in multiple countries, including the UK, and has recently claimed the title of the most-watched Netflix limited series. Not to mention the media attention it’s generating.
Anyway, we digress. Why does Netflix give away great films and TV series? Read on to find out more.
How Does Netflix Decide What to Keep and What to Give Away?
There’s a strategy behind the TV series and films that Netflix gives up. This strategy consists of numbers and dollars.
Netflix loves using data analytics (like any business). It understands your viewing trends on a level more in-depth than you realise so that it can enable you to discover more. Each detail, such as when you start and stop watching a show and whether you binge-watch on a Tuesday night, is tracked. This information greatly influences its decisions. If a show (or series) does not garner enough attention in a short time, it faces cancellation.
The expense of producing original content is borderline ridiculous. The most expensive to date was Stranger Things, costing an estimated $30m…per episode! With a total of 34 episodes, that’s $1.02bn.
So, essentially, it’s money.
Some of the Biggest Netflix Original Series and Films
When it comes to creating a hit, Netflix does not take the chance of leaving anything to luck. It does everything from cast selection to worldwide premiere scheduling specifically to ensure the success of Netflix originals.
Let’s stick with Stranger Things since it was the most expensive. It featured retro clothing, a now-famous soundtrack, CGI monsters, and endless mayhem. It didn’t just become a show; it was retro culture’s spark.
Understandably, The Queen’s Gambit also skyrocketed in views. Who knew that a show about chess could ignite Google searches about its gameplay?
Then there’s Squid Game, the most streamed series before Adolescence this month.
When it comes to movies, Red Notice and The Gray Man are the most popular. The only downside is that they didn’t resonate with critics. Viewers, on the other hand, enjoyed them. The new movie The Life List was pegged to be one of the biggest, but it’s looking to be a flop.
How Much Revenue Is Netflix Generating?
In 2023 alone, streaming sales brought Netflix approximately $33.6bn. Not bad for a business that started off mailing DVDs in red envelopes. Over the past decade, it has been increasing revenue at a whopping 23% compound annual growth rate (probably because it keeps putting its prices up).
As expected, most of this revenue comes from subscriptions. Over 300 million people have a subscription that they mainly use to endlessly scroll before restarting The Office for the sixth time. In terms of pricing, it is tiered and clever. It has budget-friendly mobile plans and ultra-premium 4K plans. The company is clearly maximising value from all aspects.
It licenses content, sells merchandise, hosts exclusive events, and, of course, sneaks ads into cheaper plans. You heard that right. Ads on Netflix. And guess what – they are working.
Netflix is making so much that it makes you want to ask them if they have a spare $1,000 they don’t mind giving away to cover next month’s bills.
Is there a point when Netflix actually loses a film or series? Actually, no.
It’s doing a really great job at adapting to changes, keeping up with customer demand, etc.
One day it’s mailing DVDs, the next it’s redefining TV as we know it – and tomorrow? Who knows what Netflix will do (probably put its prices up again)?
