Matthew Ball @ballmatthew Venture investor, strategist, essayist, that guy on Twitter. Prev. Head of Strategy @AmazonStudios, ex-Otter Media, @MediaREDEF. 🇨🇦 Jul. 01, 2019 1 min read

Great (paywall) piece from @theinformation on Netflix becoming more "budget conscious" and "efficiency" focused.

Some thoughts below, but basically this is a natural maturation of Netflix's needs, rather than just its age or "Hollywoodification"

 https://www.theinformation.com/articles/netflix-plays-new-role-budget-conscious 

For many years, Netflix’s primary concern was only solving for volume. Like a new pharmaceutical company, it could start a pipeline of development but everything was years from release.

As a result, it couldn’t be too selective on what was ordered/renewed to meet volume needs

Which is why we saw/still see Netflix bring back old shows (Arrested Development), take over cancelled ones (Designated Survivor), pickup those dropped by another network in development (Locke & Key), and rely heavily on packaged, ready-to-go shows (agencies super helpful here)

But as you build a pipeline, make talent deals (Shonda! Ryan! Barris!) and grow output, you start to have real alternatives and important trade-offs to make with each greenlight. It's not what you can get, it's what you choose to make - which informs what you don't.

And by nature of the fact their spending has grown, the value of very small percentage differences in efficiency has become enormous. 10% of Netflix's cash spend in 2019 is 40% of its 2014 spend.


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