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by dmurray 200 days ago
Why do they care what you watch? I expect they pay a flat fee to license content (if not, how is that policed?) so the marginal cost to them is the same no matter what you watch.

I'd guess they push you to their content for the same reason they make that content in the first place: they believe you'll like it and keep watching it.

Ad placement is one wrinkle that would incentivize promoting their own content, but I don't get the impression that's big enough to make the difference at the margins.
3 comments
derektank 200 days ago
>I expect they pay a flat fee to license content

I wouldn't tbh, though I'll admit I'm speculating solely on public information. During the 2023 strikes, SAG-AFTRA and the WGA negotiated additional residuals based upon whether 20% of the streaming services subscriber base viewed the content within 90 days of release.[1] So, streaming platforms are evidently willing to share subscriber viewership data with 3rd parties if it's a contractual requirement.

I would be surprised if content licensors haven't negotiated an as good or better deal for themselves.

[1] https://variety.com/2023/biz/news/sag-aftra-streaming-bonus-...

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chucksmash 200 days ago
If you mostly use Netflix to watch licensed content, you're more likely to cancel when all the licensed content is removed from the catalog.

If they successfully steer you towards Netflix produced content, you're less sensitive to what happens to the licensed content.

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fragmede 200 days ago
The story I heard about most Netflix content going for very long is that after two seasons a show's cast unionizes and they didn't want to pay up and they'd rather cancel shows, which seems awful penny-wise pound foolish of them.
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alsetmusic 198 days ago
> which seems awful penny-wise pound foolish of them.

On one of the podcasts that I listen to, which has given me many great recommends, one of the hosts has given up watching content until it hits three or four seasons because of exactly this.

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jrowen 200 days ago
If people are watching their content, they can rely less on licensed content and drive those costs down. It's a similar value prop to any vertical integration.
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