Takeaways from Ted Sarandos, Netflix's Chief Content Officer. From UBS's Global Media Conference.
- NFLX has a $5B networking budget, the largest programming budget in the world. With that they are producing critically acclaimed and award winning content.
- NFLX invented binge viewing and people are addicted. Waiting a week between new episodes feels archaic.
- Netflix is an international growth story. Worldwide, Narcos was a huge hit and it ramped up brand awareness. Europe, South America, Japan, and Australia have huge market potential.
- Netflix has a trove of valuable data on consumer tastes. Across all demographics and on a scale their competitors dream of, NFLX understands exactly what viewers want to watch. When investing in content, Netflix has significant edge.
- The only reason consumers are still paying a cable bill is for sports. Live broadcasting is what makes sports cool. Live is not in NFLX's core strategy. In order to get into Sports, they would prefer to create a league like ESPN did with X-Games.