Netflix has released its stakeholder letter for Q3 2019, and in it they have hinted that continuing to create original content will be their way of competing in the streaming wars.
When discussing the success of their content in Q3, Stranger Things Season 3 was highlighted as the most watched season to date, with the company describing how 64 million member households watched the show in its first four weeks.
Similarly, Netflix cited new limited series Unbelievable as a huge success for them, describing it as ‘one of our most thought provoking and highly viewed dramas’ and stating that 32 million member households had viewed it in its first 28 days.
Moving on to original films, Netflix said they were ‘investing aggressively’ in them and ‘making great progress with improving results’. They said that there had been several solid hits in Q3, including Secret Obsession, Motherhood and Tall Girl.
Netflix then went on to describe how they were going to continue investing in original content by acknowledging that existing content ‘can be expensive’ and ‘we don’t close every deal we chase’. Indeed, Netflix recently lost both Friends and The Office, with these shows moving to HBO Max and NBC’s streaming platform respectively.
They also hinted that producing original content would be their way of competing in the streaming wars, saying: ‘With so many firms now looking to provide premium video content to consumers, it’s a great time to be a creator of content.’
With Disney+ releasing a platform that will be full of vintage original content, Apple TV+ investing in original content such as The Morning Show and See and HBO Max investing in family-friendly originals based on Sesame Street, Netflix will certainly have more competition in the original content stakes as we enter the next quarter.
