Netflix continues to encourage users worldwide to like and subscribe. However, the precise number of subscribers and likes will remain in the streamer’s vault in the future.
Ted Sarandos, co-CEO of Netflix, discussed the company’s recent decision to stop disclosing on subscribers as the TV upfront season approaches during his appearance at the Time100 Summit in Manhattan on Wednesday. Sarandos stated that the service will focus on three important areas: engagement, income, and profit, rather than a member figure.
Sarandos claims that four buttresses support the three pillars. He went on to explain that the four C’s are commerce, choice, content, and conversation. “We call them the four C’s,” he said.
READ MORE: Samsung Television Proprietors Can Now Obtain Enhanced 4K HDR On Netflix
Regarding the final C, Sarandos said, “We added that later.” “The commerce part comes if you do all three of those well.”
The client, however, is a fifth C in the mix. According to Sarandos, Netflix’s focus on engagement, income, and profit will represent what he believes to be the real indicator of the company’s worth: how well it serves customers rather than the quantity of members.
He stressed, “It’s taking something really complicated, simplifying it, and placing the customer at the center of it.”
Additionally, Sarandos presented Netflix’s 2022 decision to introduce an ad-supported tier as a decision that would directly affect its customers.
He said that the streamer’s early opposition to advertising was a “classic counterposition” to the frequent commercial breaks that characterize the broadcast and cable viewing experience. “Advertising enables us to offer a cheaper product for folks who might want that or folks who might need that,” he said.
However, according to Sarandos, Netflix’s aim to become a “choice company” meant that its users should have the freedom to choose whether or not they wanted to spend less money and have more ad breaks while binge-watching Wednesday and Baby Reindeer. Noting that 55% of sign-ups in ad-tier supported countries in Q4 went to the ad plans, the streamer announced its first ad-tier price increase last year.
For its part, Netflix continues to prioritize subscriber revenue over advertising revenue. Regarding advertising’s role in the business’s total revenue stream, Sarandos stated, “We’ll primarily be a subscription revenue service for the long haul.” On May 14, Netflix will celebrate its sponsors during its upfront presentation in New York.
You will either have to praise or blame your subscribers if Theo Von or Joe Rogan are the focus of the upcoming Netflix Roast. During a Q1 earnings call last week, Sarandos raised eyebrows by saying that he was open to introducing video podcasts to the streamer’s home page.
When asked to expound on his remarks at the Time100 Summit, Sarandos cited the strong demand from consumers for the “video-forward” era of podcasting.
“It has accelerated the blurring of the distinctions between podcasts and talk shows,” he continued. For almost ten years, Netflix has been experimenting with talk show formats, starting with Chelsea and The Break with Michelle Wolf and continuing with John Mulaney’s Everybody’s in L.A., which is currently available for streaming.
The next step in that experiment could be video podcasts, which would entice the attention of YouTube users.
In a matter-of-fact manner, Sarandos said, “People seem to really like them.” “We’re constantly searching for things that we can contribute to that the media are seeking.”
Step into the ultimate entertainment experience with Radiant TV! Movies, TV series, exclusive interviews, live events, music, and more—stream anytime, anywhere. Download now on various devices including iPhone, Android, smart TVs, Apple TV, Fire Stick, and more!
