Whats happening with Netflix -

05.07.2017 18:42

Netflix Originals - making the cut
2084738.pngNetflix has become more ruthless with its content commissions in recent periods, cancelling what it perceives to be under-performing series at a higher-than-ever rate. Series such as The Get Down, Bloodline, Sense 8 and Marco Polo are all titles which have failed to make the cut.

Netflix CEO Reed Hastings has indicated that he would like Netflix to be cancelling more shows, hand-in-hand with taking more programming risks. But Netflix's recent spate of cancellations is likely also linked to reversing the declining average quality of its titles. Since 2015, Netflix's catalogue of Originals has dropped in quality by roughly 4%, as estimated using Ampere's own quality measure.
2084739.pngThe shows which Netflix has cancelled have all fallen below a cost vs interest threshold. Ampere has calculated a simple cost-effectiveness ratio for Netflix Originals (weighing up show cost relative to the volume of quality-weighted IMDB reviews) which illustrates that Netflix's cancelled shows (with the single exception of Bloodline) all fall below the levels of cost-effectiveness achieved by its renewed titles.

On this scale, Stranger Things registers as the most cost-effective series Netflix has released, followed by 13 Reasons Why and by Narcos. By contrast, The Get Down achieved middling interest but commanded a high fee, and was the least cost-effective Original, followed by Hemlock Grove.

To interact with the chart, and view both cancelled and renewed stats click here.
Netflix has been placing its bets in a few areas. By Ampere's estimates, over a third of the company's expenditure on Originals to-date has been for Drama titles, and nearly a quarter of the company's Original spend has been on Comedy series and stand-up shows. Action & Adventure, Crime & Thrillers, Science Fiction and Horror are also significant areas of investment.

Kids/Family and Documentary titles represent important components of Netflix's catalogue, but the relatively low costs-per-hour for the categories - particularly compared to scripted drama and entertainment series - mean that sums spent on these genres have been comparatively low.
For more information, please contact Greenfields Communications:
Wes Rogers 
wes@greenfieldscommunications.com Tel: 020 2387 3262/001 912 506 0869
Lucy Green 
lucy@greenfieldscommunications.com Tel: 07817 698366

Ampere Analysis
Dan Stevenson 
dan.stevenson@ampereanalysis.com T: 020 7613 8355 M: 07973 157317

About Ampere Analysis
Founded in January 2015, Ampere Analysis is a new breed of media analyst firm. The company’s experienced team of sector-leading industry analysts specialises in pay and multiscreen TV, communications and next generation content distribution. Our founders have more than 40 years’ combined experience of providing data, forecasts and consulting to the major film studios, telecoms and pay TV operators, technology companies, TV channel groups and investment banks. 


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