Netflix’s Strategy Shift: Reviving Licensed TV Shows to Global Success

Netflix is redefining its strategy by turning licensed TV shows, such as “Suits” and “The Office,” into global sensations. This approach not only showcases Netflix’s prowess in the streaming domain but also underscores the platform’s ability to breathe new life into older shows.

Key Takeaways:

• “The Office,” once sold to Netflix by NBCUniversal, gained immense popularity, prompting NBCU to repurchase the streaming rights for $500 million.
• “Suits,” another NBCUniversal show, is experiencing a resurgence on Netflix.
• Nielsen’s streaming rankings often feature shows available on multiple platforms, with Netflix likely driving most of the viewing time.
• Netflix’s co-CEO, Ted Sarandos, highlights the “Netflix effect” where shows gain global recognition due to the platform’s vast distribution and recommendation system.
• Netflix positions itself as a multiplier for other studios’ content, evident from the success of shows like “Suits.”
• Entertainment companies previously hoarded content for their streaming services. However, the trend of licensing content to platforms like Netflix is making a comeback.
• Warner Bros. Discovery has been actively licensing its programming, with shows like “Westworld” and “The Nevers” finding new platforms.
• Netflix’s ability to transform older shows into hits signifies a potential shift in the streaming industry’s dynamics.

Reviving Classics: Netflix’s Winning Formula

When the final episode of “The Office” aired in 2013, it had already secured lucrative TV syndication deals. Its subsequent sale to Netflix led to a surge in its popularity, emphasizing the platform’s influence in the streaming space. Similarly, “Suits” is enjoying a renaissance on Netflix, reinforcing the platform’s reputation as the go-to destination for diverse TV shows and movies.

A Changing Streaming Landscape

The streaming industry has witnessed significant changes since 2013. Shows like “NCIS,” “S.W.A.T.,” and “Heartland” have consistently ranked among the top streaming series of 2023. Netflix’s vast subscriber base, totaling 77 million in the U.S. and Canada, likely contributes to the high viewership of these shows.

The Netflix Effect

Ted Sarandos, co-CEO of Netflix, emphasized the “Netflix effect” during an analyst meeting. He highlighted how the platform’s distribution and recommendation system played a pivotal role in popularizing shows globally.

Licensing: A Renewed Trend

Historically, entertainment giants like NBCUniversal, Warner Bros. Discovery, and Paramount pulled their content from platforms like Netflix to bolster their offerings. However, the trend of licensing content is resurfacing. Even Disney, which had previously refrained from licensing its core franchises, is now open to occasional third-party licensing.

Maximizing Value Through Licensing

Warner Bros. Discovery has been proactive in licensing its content, especially as it navigates merger-related debts. Shows like “Westworld” and “The Nevers” have found new homes on platforms like Tubi and Roku. Additionally, HBO titles that were previously exclusive have made their way to Netflix, further underscoring the changing dynamics of content licensing.

Netflix: The Ultimate Beneficiary

Netflix’s ability to rejuvenate older shows or those that struggled on other platforms is unparalleled. The platform’s success with shows like “Suits” indicates a potential paradigm shift in the streaming industry. As older shows find renewed success on Netflix, the platform continues to solidify its position as an industry leader.

Conclusion

Netflix’s strategy of reviving licensed TV shows has proven successful, with classics like “Suits” and “The Office” gaining renewed popularity. As the streaming landscape evolves, Netflix’s ability to transform older content into global hits sets it apart, potentially ushering in a new era for the streaming industry.