In the wake of Netflix’s better-than-expected second-quarter results yesterday, more information is coming out about their plans going forwards and where they see the industry going over the next few years.
First up during the earnings call, Netflix co-CEO Reed Hastings declared that linear television (ie. free-to-air shows) would die off within the next decade. He says:
“It’s definitely the end of linear TV over the next five to 10 years. In the US, which is one of the most competitive markets in the world, we drew more TV viewing time than any other outlet during the 2021-22 TV season nearly matching the combined total of the two most watched broadcast networks.
Netflix’s share of total TV viewing in the US hit an all-time high of 7.7% in June and around 1.334 trillion minutes of streaming – far above second-place CBS with 753 billion minutes of viewing.
Next, co-CEO and CCO Ted Sarandos says the proposed cheaper ad-supported service tier will not have all of the streamer’s licensed content due to licensing issues.
Meanwhile, Reuters reports that the streaming giant is taking a page from the Disney playbook and trying to build megabrands and franchises that traverse film, television, games and more.
The aim will be to complement Netflix’s efforts to build a library of original programming with something for every taste. Netflix VP Matthew Thunell says: “We want to have our version of ‘Star Wars’ or our version of ‘Harry Potter,’ and we’re working very hard to build that, but those are not built overnight.”
“Stranger Things” of course has been their star brand and has led to tie-in merchandise and live experiences, whilst a spin-off series and stage play are in the works. Others like “Money Heist,” “Bridgerton,” “The Witcher” and “Squid Game” have all gone beyond their original series with other tie-in works. They’ve also started budding franchises in film with “Enola Holmes,” “Extraction,” and “The Old Guard” all getting sequels.
The company has identified three coming shows as potential franchises – their live-action adaptation of the long-running anime and manga “One Piece,” the live-action adaptation of the animated series “Avatar: The Last Airbender,” and “The Three -Body Problem” from former “Game of Thrones” co-creators David Benioff and DB Weiss.