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Netflix Q4 reveals SVOD moving away from second run content

Global streaming behemoth Netflix is setting sights away from second run content as competitors ramp up their own services. According to a shareholder letter released yesterday (Jan. 18), the SVOD service ...
January 18, 2019

Global streaming behemoth Netflix is setting sights away from second run content as competitors ramp up their own services.

According to a shareholder letter released yesterday (Jan. 18), the SVOD service noted that with the successes of its original content, the company was less focused on second run programming, but are ready to pay top dollar if studios, networks and producers alike are willing to sell. The Los Gatos, California-headquartered platform is, however, aware that its competition might “choose to retain their content for their own services.”

In recent months, for instance, industry titans like Disney and WarnerMedia have opted to develop their own platforms to host their own content on.

Netflix, for its part, noted that since launching its unscripted strategy two years ago, Netflix Originals like Tidying Up with Marie Kondo (pictured) account for a substantial chunk of unscripted view share on the platform.

The company grew its annual revenue 35% to US$16 billion in 2018 and wrapped up the year with a total of 139 million paying memberships, adding 29 million users from the beginning of the year. In Q4 the company added 8.8 million members (1.5m in the U.S. and 7.3m internationally), a jump from the projected 7.6 million.

Netflix’s fourth quarter operating margin dipped 5.2% from 7.5% the year prior due to the numerous titles it released in the quarter.

Netflix announced recently that it will be raising its monthly subscription fee across its various packages, with its cheapest basic plan costing US$9, up from $8; its most popular HD standard plan will cost $13, up from $11; and its 4K premium plan will cost $16, up from $14.

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