Research by Parrot Analytics and Kagan, a media research group within S&P Global Market Intelligence, shows support for one of Netflix’s most important strategic goals: To have 50 per cent of its content be comprised of Netflix originals. According to the report, which leverages Parrot Analytics’ globally standardised Demand Expressions metric, demand for Netflix Originals is estimated to overtake the share of demand for licensed titles by October 2019.
The analyst companies joined forces to produce a comprehensive report on demand for television content across streaming SVoD platforms in the US. Overall, the report found demand for content on all major SVoD platforms, including Netflix, Hulu, HBO Now, Showtime, and Starz, has increased over the past year.
In its analysis of demand for Netflix’s content, the report compared the sum of US demand for both Netflix original series and the licensed titles available on the US Netflix service each month. While currently the most in-demand content tends to be licensed titles, the proportion of the demand share from Netflix original titles has generally grown month over month.
Overall, for the 12 months analysed, the demand share for Netflix originals grew an average of 1 per cent each month. From July 2017 to June 2018, the streaming service’s reliance on licensed content dropped by 10.9 per cent. Based on this 12 months of data, the report forecasts that Netflix will generate 50 per cent of US audience content demand with its own original content from October 2019 onwards.
For the premium channel VoD platforms (HBO Now, Showtime, and Starz), new content from their linear channels tends to be the most in-demand. However, Parrot Analytics affinity analysis reveals that the respective back catalogue of each VoD platform continues to play an important role, indicating that older titles likely remain an important driver of subscriber loyalty.