December 3, 2018
Netflix doesn’t release ratings or viewership data for original programming.
But that didn’t stop Chief Content Officer Ted Sarandos from disclosing that 20 million people streamed original feature-length movie The Christmas Chronicles, starring Kurt Russell as a brash-talking (and singing) Santa Claus, during its first week of release.
Speaking Dec. 3 at the UBS 46th Annual Global Media and Communications confab in New York, Sarandos conveyed that Russell told him none of his movies had ever attracted that many viewers in the first seven days of release.
“That’s a testimony … we can bring to the market for storytellers today,” Sarandos said. “We probably couldn’t have done that 10 years ago.”
The executive used the anecdote to underscore his long-running battle against the 90-day theatrical window. A mindset that Sarnados believes all theatrical releases should be made available across all distribution channels simultaneously.
“If every one of those views was a movie purchase, that’s a $200 million opening week,” he said. “Even movies that go on to make $1 billion, don’t typically do that the first week. The ability to tap into that big audience differentiates us from everybody else.”
It’s controversial stance that has resulted in exhibitors, film festivals and Hollywood largely shunning Netflix films at the box office and awards circuit. Critics contend the SVOD giant is leaving money on the table, undermining content creators, producers and actors financially by streaming new-release movies globally to subscribers paying $9 a month for access.
Sarandos disagrees, arguing his approach to distribution simply bucks the tradition around the opening box office weekend.
“It’s saying, ‘I really want my movie in the culture. I want people to talk about my movie in line at Starbucks,’” Sarandos said. “I want to be the topic of discussion with my story that I’ve invested my entire life telling.”
Sarandos said studio executives grew up in a world where that was the definition of the Zeitgeist: Being the No. 1 movie at the box office.
Separately, the executive expressed little concern about pending over-the-top video platforms from Disney and WarnerMedia.
He said the new competition has been on management’s mind for a while and prompted Netflix’s foray into original programming years ago with “House of Cards,” “Orange Is the New Black,” “Lilyhammer,” “Arrested Development,” and “Hemlock Grove,” among others.
“They represented everything from comedy to drama to horror,” Sarandos said.
Netflix is now a global producer of on-demand content across all genres, including 20 original unscripted TV shows streaming this year compared to zero last year.
The service will stream 70 local-language original shows in 2019. Sarandos said local productions featuring local casts and language are becoming worldwide hits, including most-recently Germany’s “Dark,” Denmark’s “The Rain,” and India’s “Sacred Games”.
“They have been remarkably relevant in their home countries,” he said. “We’re not trying to make Hollywood content for the world. We’re trying to make content from anywhere in the world to the rest of the world.
Netflix just released “Bodyguard,” a joint venture with the BBC, underscoring the fact 80% of new subscriber growth is originating internationally, which mandates global – not Hollywood – content production, according to Sarandos.
“We’re better off deciding our own destiny and making our own choices with the consumer in mind than a bunch of competitors in mind,” Sarandos said. “Some of those things [third-party SVOD services] will successful, but not to the detriment of Netflix.”