As Netflix trudges through an engagement slowdown, co-CEO Greg Peters teased that the streamer might embrace add-on subscriptions as a way to “expand our entertainment offering.”
“We think that the same core benefits to the partner, incremental reach, incremental monetization, would apply in that model as well,” Peters said during Tuesday’s earnings call, referencing the streamers third-party partnerships like TF1. “We also think that there’s much about the product experience that we built that works for that … would work for that kind of service integration as well.”
Peters declined to share any exact details on specific partnerships on Tuesday’s call, but teased that shareholders should “expect that we are going to continue to find new ways to bring more core entertainment value to our members.”
Peters’ comments come after a successful launch for TF1 in France this summer, which is “generating incremental viewing,” according to early metrics reported in Tuesday’s earnings report.
“We have been able to enhance an already very compelling service for our French members with even more local, popular French programming, we’ve seamlessly integrated the TF1 product experience in a way where it supports their brand, but it also keeps things distinct,” Peters said. “We think this approach is advantageous for both them, supports their value proposition, and [for] us, it’s good for the customer too because it signals what they’re getting.”
Ted Sarandos spoke similarly about licensing deals with Disney, which saw all five “Ice Age” movies land in Netflix’s top 10 movies list after being licensed to the streamer in October.
“It is a win-win deal,” Sarandos said. “And the reason it’s a win-win deal is that we benefit by expanding the entertainment offering for sure. Disney benefits from the revenue and from putting that content in front of our large global member base. Now our members benefit, of course, because they get the addition of Disney content.”
Moving forward, Peters said the team believes they can “replicate similar positive results with other partners where this approach meets the needs of the partner as well.” “Those are opportunities that we’re going to sequence,” he explained. “We’ll prioritize [that] with all the other growth opportunities we have, we have a lot going on that we’re going after.”
