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As the graphic representation of the goetzpartners Content Efficiency Index shows, three players manage to perform especially well in the current streaming and TV market. These players are Netflix, Disney+, and TV Now; all of them build their competitive advantage on different strategies,
which can be used as best practice examples.
Every piece of content provided on
Netflix is tagged with at least a hundred microgenres (ranging from “Oscar-win- ning Romantic Dramas from 1950” to “Post-Apocalyptic Comedies about Friendship”), which enables Netflix to accurately analyze the need for every
component desired by customers. These
analyses lead to larger customer
retention, since Netflix knows exactly what consumers want, and this know- ledge influences the stories of new
formats greatly.
Starting with Netflix, we can note that it occupies a
pioneering position in terms of original content
production. Netflix invests at least ten times more
money in original content than any other player
included in this study, spending approximately $10
billion per year on original content. Thus, Netflix
wants to take advantage of the fact that it has the
largest content budget worldwide by releasing one to
two blockbuster series and movies per week,
according to one of our experts. It has incorporated
trends like the need for global content in its content
strategy and generates a vast amount of user data
focusing on the preferences of each user based on
microgenres.