• by Wayne Friedman , Staff Writer, September 20, 2024

Streaming TV walled gardens are not good places for TV talent and producers who want to know how well their TV shows and movies have fared.

This is one conclusion we can glean from remarks by Ted Sarandos, co-CEO of Netflix.

“So, this idea is that the number is out there so that talent can see it, so that agents can see it, so that the press can see it and know what's a hit and what’s a miss,” he said, speaking at an industry event this week.

He called on other streaming platforms -- which have server-based services -- to be more transparent about this, to enable everyone to see how everyone is doing.

But here’s the rub: We know that all premium streamers see the value partly in not giving up too much of that data -- which can be used against talent, producers, and advertisers when it comes to negotiation of business deals -- of all types.

Netflix, the premium streaming leader of content, has been releasing show-related data for some time -- specifically total viewing minutes of TV shows, episodes and movies. 

Although Netflix does release viewing data, talent and producers seem to want much more detail.

Can we guess that Netflix has deeper knowledge about the specific audience segments of that viewing -- young, old, male or female?

What about co-viewing? What about the details of multi-TV show viewing for one viewing session? 

Well, it’s good to be king. Sarandos says Netflix had a massive 94 billion hours of viewing in the first half of the year, and he believes it can double in size thanks to more upcoming live events -- including two high-profile Christmas Day NFL football games. 

Looking more broadly at the streaming space, Sarandos estimates the two streaming powerhouses -- Netflix and YouTube -- command 20% of all screen time -- roughly 10.5% for YouTube, and around 8.5% for Netflix. Netflix is focusing on efforts to take in some of the 80% that is available.

To calm some of the fears of talent and producers, Sarandos says its model puts more of the onus and responsibility on Netflix. It not only pays for the production, but pre-negotiating salaries for the talent. In the past, TV networks largely just paid an all-encompassing standard license fee to movie/TV studios for a show.

The problem in calling for more transparency by Netflix now is that non-Netflix premium streamers -- Disney+, Hulu, Max, Peacock, Paramount+ and all the rest -- are still treading water in terms of still-small net losses in the business, or at best, tiny profits. 

Asking those streamers to give up whatever salary or cost leverage they have with talent and producers by revealing more data might be a difficult thing to do -- considering that the long road to strong profit margins is still way off in the distance.