Netflix co-CEO Ted Sarandos defended the streaming giant’s strategic shifts at the 2024 Fast Company Innovation Festival, emphasising the company’s willingness to adapt to changing market conditions.
Sarandos addressed Netflix’s previous stances against advertising and live sports, which the company has since reversed. “We should always reserve the right to get smart,” he stated, explaining that “never” is often used as a “focusing word” for present objectives rather than an absolute commitment.
The streaming service launched an ad-supported subscription tier in 2022, despite years of resistance to the idea.This move has proven successful, with the plan now boasting over 40 million global monthly active users, up from 5 million last year.
Similarly, Netflix’s journey into original content production, once firmly opposed by co-founder Reed Hastings, has become a cornerstone of the company’s strategy. Sarandos recalled Hastings saying, “We will never do original programming,” on an earnings call. However, concerns about content differentiation and potential loss of licensed shows to competing platforms led to a change in direction.
The shift paid off, with Netflix’s second original series, “House of Cards,” receiving critical acclaim and multiple awards. Today, Netflix accounts for approximately 25% of the world’s streaming original series, according to Parrot Analytics.
Sarandos framed these strategic reversals as necessary responses to evolving market opportunities and challenges. “These are businesses,” he emphasised. “These are not religions.”
Sarandos addressed Netflix’s previous stances against advertising and live sports, which the company has since reversed. “We should always reserve the right to get smart,” he stated, explaining that “never” is often used as a “focusing word” for present objectives rather than an absolute commitment.
The streaming service launched an ad-supported subscription tier in 2022, despite years of resistance to the idea.This move has proven successful, with the plan now boasting over 40 million global monthly active users, up from 5 million last year.
Similarly, Netflix’s journey into original content production, once firmly opposed by co-founder Reed Hastings, has become a cornerstone of the company’s strategy. Sarandos recalled Hastings saying, “We will never do original programming,” on an earnings call. However, concerns about content differentiation and potential loss of licensed shows to competing platforms led to a change in direction.
The shift paid off, with Netflix’s second original series, “House of Cards,” receiving critical acclaim and multiple awards. Today, Netflix accounts for approximately 25% of the world’s streaming original series, according to Parrot Analytics.
Sarandos framed these strategic reversals as necessary responses to evolving market opportunities and challenges. “These are businesses,” he emphasised. “These are not religions.”
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