
Premium streaming financial
success requires a lot of different kind of TV/movie content -- not just a top-ten list or the most-viewed shows, according to one media-company focused stock-market research analyst.
Looking at Netflix, the dominant and consistently profitable premium streamer, MoffettNathanson Research says “63% [two-thirds] of viewership was driven by titles neither in the
top 100 nor in the bottom 10,000.”
This analysis comes in response to Netflix's six-month research release last week, in which it said 99% of all
viewing came from 18,000 titles, with nearly 100 billion hours viewed.
MoffettNathanson adds that 10 titles drove 8% of all viewership in the first half of 2023, and 100
titles drove 33%. “But we were more struck with the relative diffuseness of the rest of the platform... This more or less confirms what we saw in Nielsen’s U.S.-specific data:
Streaming requires a lot of content.”
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MoffettNathanson went on to calculate that in the first half of 2023, a total of 93.46 million total hours were viewed -- from
242 million global subscribers. That means the average Netflix subscriber is watching about 2.1 hours of programming per day.
All this helps streamers conquer the
dreaded problem of "churn" -- the process where subscribers depart a streamer platform, perhaps signing back on later on when their favorite TV shows start up again.
“While the average American household may have once watched TV eight hours a day, capturing more than two hours of every subscribing household’s day is likely enough value
delivered to minimize churn.”