Study: Turning content dollars into audience - Page 27


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