Streaming Giant Netflix Embraces Local Authenticity and Global Reach
In a keynote address at the Royal Television Society's (RTS) London Convention 2024, Netflix co-CEO Ted Sarandos shared the streaming giant's strategic focus on original content with local authenticity and a commitment to serving audiences rather than critics or media executives. Sarandos highlighted the company's success in the UK market, its evolving business model, and the importance of constant innovation in the rapidly changing entertainment landscape.Unlocking the Power of Authentic Local Storytelling
Embracing the UK's Creative Edge
Sarandos emphasized the UK's pivotal role in Netflix's global content strategy, noting that the country is the streaming giant's largest production hub outside the US. He revealed that when Netflix publishes its latest audience engagement report, the top four shows will all be UK-produced, including "Fool Me Once," "Baby Reindeer," "Bridgerton," and "The Gentlemen," collectively reaching 360 million households. Sarandos lauded the creativity, skills, and production incentives that have made the UK "one of the best countries for TV and film."Authenticity as the Key to Global Success
Sarandos argued that targeting a global audience with content is the wrong approach, as there is no true "global audience." Instead, he advocated for an authentic local focus that can then resonate beyond borders. He cited the success of "Supacell" and "Baby Reindeer" as examples of shows that became global hits by being "authentically British," commissioned by a local British team.Challenging Conventional Wisdom
Sarandos recalled showcasing the first trailer for "The Crown" at the RTS event seven years ago, touting the show as a "stand [on] conventional wisdom on its head." This commitment to challenging the status quo is a hallmark of Netflix's approach, as the company seeks to constantly reinvent itself on behalf of its consumers.Embracing Diversity of Tastes
Addressing the question of whether Netflix needs so many shows and films, Sarandos emphasized the importance of catering to diverse tastes. He shared the example of how people who love "The Crown" also enjoy "Dolly Parton's Heartstrings," underscoring the need to "put the audience first" and think about content from the perspective of a fan, not just critics or media executives.The Art of Navigating Uncertainty
Sarandos acknowledged that success in the entertainment industry is more art than science, and that algorithms cannot "reverse-engineer success." He admitted that Netflix does experience flops, despite the company's data-driven approach, highlighting the inherent unpredictability of the creative process.Embracing Change and Disruption
Sarandos emphasized the importance of constant change and the willingness to disrupt one's own business model. He recalled the "painful split" when Netflix gave up on its DVD business, citing Steve Jobs' advice that cannibalizing one's own business is key to continued progress. This mindset of embracing change and disruption is central to Netflix's strategy as it navigates the evolving entertainment landscape.Navigating the Complexities of Authenticity
Addressing the $170 million lawsuit by the real-life inspiration behind the "Baby Reindeer" character, Sarandos acknowledged the unique British debate around the use of "true story" labels, arguing that the show "is not a documentary" and that "there are elements that are dramatized." This highlights the nuances and challenges of balancing authenticity and creative license in storytelling.Investing in the UK's Creative Ecosystem
Sarandos shared that Netflix has invested $6 billion in the UK since 2000, with over 30,000 cast and crew members and more than 100 productions, including "Bridgerton," "Thursday Murder Club," and the new "Knives Out" movie. This investment underscores the company's commitment to fostering the UK's thriving creative ecosystem and leveraging its talent and resources to drive global success.Embracing Diverse Viewing Preferences
Sarandos revealed that he and his wife enjoy different content, with his wife "loving" "Emily in Paris," which they recently finished binging together. This anecdote highlights the importance of catering to diverse viewing preferences within households and the need for a varied content portfolio to meet the evolving demands of audiences.In conclusion, Netflix's strategic focus on original content with local authenticity, its commitment to serving audiences, and its embrace of constant change and disruption position the streaming giant for continued success in the rapidly evolving entertainment landscape. By leveraging the creative talent and resources of key markets like the UK, Netflix is poised to deliver engaging and globally resonant content that captivates audiences worldwide.
