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Ratings don't matter to Netflix - subscriptions matter. The article hints at this but doesn't draw it out. Netflix in general doesn't make its money from eyes
by learnstats2 8y ago
Ratings don't matter to Netflix - subscriptions matter. The article hints at this but doesn't draw it out.
Netflix in general doesn't make its money from eyes on advertising - so ratings are not a good KPI for them.
Netflix in general does make its money from subscriptions - so shows that bring in subscriptions and those that are good enough to retain subscriptions are the KPI they will be looking at. I find it likely that they have metrics along the lines of what shows keep people clinging on to their subscription.
It seems likely to me that these two KPIs lead to very different conclusions about what shows to commission and cancel.
- the_watcher 8y agoMy guess is that they are related enough that most cancelled shows are on the low end of ratings. But I'd also guess that the relationship is nowhere near as linear as a traditional network. The key to renewal at Netflix seems like it should be proving that its continued existence results in subscriptions that would otherwise not exist.