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> Each view of a Stranger Things episode generates exactly zero dollars. I stopped watching shows on Netflix and subsequently cancelled my subscription. The va

by rcme 3y ago

> Each view of a Stranger Things episode generates exactly zero dollars. I stopped watching shows on Netflix and subsequently cancelled my subscription. The value isn't in Netflix having content. Rather, the value is in viewers' consuming of content. Surely each view of an episode contributes to the revenue generated by the viewers' subscription fees.

ketzo 3y ago
Not directly, no. There's no marginal revenue generated from a person viewing an episode of a show on Netflix (unless they're on an ad-supported subscription). The value of each show on Netflix is that it gives users one more reason not to cancel their subscription. The value is in Netflix always having more content for you to watch.
- urfullofsht 3y ago
  [dead]
- ghaff 3y ago
  >The value is in Netflix always having more content for you to watch. More precisely it's, as you said, in Netflix always having more can't miss content for you to watch. If you subscribe to Netflix for one or two shows that you absolutely must watch they are perfectly fine with that.
jacobr1 3y ago
Kindle Unlimited works[1] works that way. They have pool of royalties derived as a percent of revenue for the month, that then distributed by views on a proportional basis. They have a specific algorithm that defines a "normalized page view" which prevents gaming from people doing things like using larger fonts, or adding filler pages that people skip. I could imagine a version of this being adapted to other "unlimited consumption" model platforms like video streaming. That leaves room for the contract to negotiate the royalty percentage, maybe with some kind of a fixed floor, and to discuss how views are "normalized." Does minutes watched make sense? Should it be normalized by account, rather than overall time? etc ... [1] https://kdp.amazon.com/en_US/help/topic/G201541130 https://kdp.amazon.com/en_US/help/topic/G201541130
- 1659447091 3y ago
  > Does minutes watched make sense? Should it be normalized by account, rather than overall time? etc ... And then incentivize people to leave their netflix accounts watching shows while they are away or whatever for pennies to recoup some of their monthly sub fees. If the royalties are enough, it would seem possible to instead just farm views for profit at netflix expense, on top of royalties, who then passes on the cost. Seems like a losing game all around
  - interactivecode 3y ago
    Do youtubers have tvs running with their videos on it to farm views in a meaningful way?
  - jacobr1 3y ago
    That wouldn't pay off for paid accounts. The cost of paying for a netflix account, will be higher whatever share of royalties is allocated from that account to the rights-holder. If for no other reason than netflix themselves is taking a cut. There might be some scenerio where gaming the system could be profitable with ad-supported accounts, but the remedy for that is probably contractual. If detected, it is a from of fraud and would have some sort of contractual or maybe even tort remedy.
- ketzo 3y ago
  Someone else in the thread mentioned that this is roughly how Spotify works, too -- take a pool of revenue, and distribute it based on how many streams an artist got. One way or another, it's clear that there are existing, practical models for distributing revenue in this way. Seems like TV / streaming video is just behind the times.

by rcme 3y ago

ketzo 3y ago

Not directly, no. There's no marginal revenue generated from a person viewing an episode of a show on Netflix (unless they're on an ad-supported subscription). The value of each show on Netflix is that it gives users one more reason not to cancel their subscription. The value is in Netflix always having more content for you to watch.

urfullofsht 3y ago
[dead]
ghaff 3y ago
>The value is in Netflix always having more content for you to watch. More precisely it's, as you said, in Netflix always having more can't miss content for you to watch. If you subscribe to Netflix for one or two shows that you absolutely must watch they are perfectly fine with that.

jacobr1 3y ago

Kindle Unlimited works[1] works that way. They have pool of royalties derived as a percent of revenue for the month, that then distributed by views on a proportional basis. They have a specific algorithm that defines a "normalized page view" which prevents gaming from people doing things like using larger fonts, or adding filler pages that people skip. I could imagine a version of this being adapted to other "unlimited consumption" model platforms like video streaming. That leaves room for the contract to negotiate the royalty percentage, maybe with some kind of a fixed floor, and to discuss how views are "normalized." Does minutes watched make sense? Should it be normalized by account, rather than overall time? etc ... [1] https://kdp.amazon.com/en_US/help/topic/G201541130 https://kdp.amazon.com/en_US/help/topic/G201541130

1659447091 3y ago
> Does minutes watched make sense? Should it be normalized by account, rather than overall time? etc ... And then incentivize people to leave their netflix accounts watching shows while they are away or whatever for pennies to recoup some of their monthly sub fees. If the royalties are enough, it would seem possible to instead just farm views for profit at netflix expense, on top of royalties, who then passes on the cost. Seems like a losing game all around
- interactivecode 3y ago
  Do youtubers have tvs running with their videos on it to farm views in a meaningful way?
- jacobr1 3y ago
  That wouldn't pay off for paid accounts. The cost of paying for a netflix account, will be higher whatever share of royalties is allocated from that account to the rights-holder. If for no other reason than netflix themselves is taking a cut. There might be some scenerio where gaming the system could be profitable with ad-supported accounts, but the remedy for that is probably contractual. If detected, it is a from of fraud and would have some sort of contractual or maybe even tort remedy.
ketzo 3y ago
Someone else in the thread mentioned that this is roughly how Spotify works, too -- take a pool of revenue, and distribute it based on how many streams an artist got. One way or another, it's clear that there are existing, practical models for distributing revenue in this way. Seems like TV / streaming video is just behind the times.