Netflix Shifts Focus to Original Franchises

Following its unsuccessful attempt to acquire Warner Bros. Discovery’s content library, Netflix is intensifying its commitment to building original, culture-defining franchises. The company will continue to invest heavily in original concepts and collaborate with studios like MGM and Warner Bros.

The Failed Warner Bros. Discovery Bid

Netflix was prepared to make a $72 billion bid for Warner Bros. Discovery, aiming to bolster its content library with valuable intellectual property such as Harry Potter and Game of Thrones. The attempt highlighted Netflix’s relative lack of a long-established content catalog compared to competitors like Warner Bros., Walt Disney, and Universal Pictures. Netflix’s original content library currently spans approximately a dozen years.

A Different Strategy Than Competitors

Interviews with industry insiders reveal Netflix employs a strategy of offering a diverse range of content to appeal to a broad audience, rather than focusing on a single, interconnected universe like Taylor Sheridan’s Yellowstone. However, successes like Shonda Rhimes’ adaptation of Bridgerton demonstrate the potential for franchise building.

The Value of Franchises

Franchises are valuable for entertainment companies, offering lower-risk investments and generating revenue through merchandise and immersive experiences. Recognizable characters and compelling narratives are crucial for capturing audience attention in a fragmented media landscape.

Strategic Investments and Acquisitions

Netflix’s strategic direction emphasizes creating original intellectual property with greater control over the narrative, characters, and release schedule. The company’s first major acquisition was Millarworld in August 2017, preceding Disney’s announcement to withdraw its movies from streaming services.

Proven Successes and Future Plans

Stranger Things, Wednesday, and Bridgerton have proven successful for Netflix, extending into spin-offs, stage plays, and merchandise. Netflix is actively seeking new projects with franchise potential, collaborating with creators and studios, and investing in high production quality. The company is also exploring themed events like 'The Queen's Ball' to deepen audience engagement.

A Long-Term View

Building franchises requires a long-term view and significant upfront investment. Netflix is shifting its internal focus to prioritize long-term audience cultivation over short-term financial metrics. The company aims to become a key player in the broader entertainment ecosystem, investing in both content and direct fan engagement.