Global streaming giant Netflix, which has been churning out amazing content across the world, believes in standing out of the crowd mainly by focusing on their ability to engage audiences. Netflix India content VP Monika Shergill thinks that with the increasing number of streaming platforms in the country, everyone must celebrate the growth phase without simply looking at the growing competition. At a session during FICCI Frames 2023 she emphasised on thinking of sustainability.
Shergill referred to the new E&Y Report that has come in and the conversation around the business models that are being pursued by the streaming platforms and how many will sustain.
“At Netflix we are very clear that we want to run a sustainable streaming model. We want to be in business in a way where we declare profits in our earnings calls, of five to six billion dollars. Most of our competitors worldwide are actually losing 10 to 11 billion dollars collectively, and that is not the way to run a good streaming business,” she said. For an all content and entertainment company that is delivering the best in the world locally and globally, one will have to start thinking of sustainability.
The lady leading the content division of one of the most popular platforms in the world is unperturbed by competitions and wants to enjoy the fact that the ecosystem is expanding. “I think we should just take a minute and celebrate that there are so many platforms. This is a growing industry.”.
Mentioning how Netflix India had moved from producing niche content to something that is for a very broad set of audience, Shergill mentioned that they have “been on a journey to expand and broaden their audience, the kinds of stories that they tell and the kind of hits that they deliver”. They streamed Alia Bhatt’s first production venture under her company Eternal Sunshine Productions Darlings, Neeraj Pandey’s Khakee: The Bihar Chapter and also Rana Naidu, which became the first pan India hit.
“With the momentum and engagement increasing at 30 per cent, it is really tremendous. If you look at the metrics, we know that delivering those kinds of engagement numbers is absolutely tremendous and groundbreaking, and that talks to how broad the content is and who it is appealing to,” she pointed out.
According to her, the only way to stand out is with the stories that one tells. “I’m a big fan of marketing but marketing can only make a good story, show or a film great as it can make it reach a larger set of audiences. But if your content is not good, if your story is not relevant for the audience, or it’s not entertaining or engaging them or if it’s not delivering them surprise, then no amount of marketing, putting up billboards or shouting from the rooftops is going to help.”
Asked about her views on Jio showcasing all of HBO content, she confidently said that although she herself loves HBO content like Game of Thrones, she is not at all nervous about it.
“The kind of bits and breadth of programming that Netflix does worldwide from every conceivable market in as many languages as possible, the kind of global cultural movements that we are able to drive, I think that’s unmatched. It was so unheard of till a couple of years ago that there could be a show like Squid Game. It is absolutely unheard of that we could become a global phenomenon so fast so quickly and in such a defining way,” the Netflix head pointed out.
She mentioned how in just two weeks The Diplomat is already trending in the top 10 in 84 countries. That is the kind of global distribution scale Netflix has.
Another point that came up was the success of a streaming platform, the metrics for a successful streaming show or the basic definition of success. “The success metrics, I think, is a crucial thing that the industry needs to look at as a whole. I feel that from a streaming perspective, there is no methodology currently. Everyone thinks that just having a huge number of subscribers is a success matrix,” she said.
But she explained that most of the subscriber base comes from the Telecommunication bundling where they give discounted and subsidised plans.
“But how many people activate their accounts? What is the engagement? What are the truest metrics of success? I think it’s early days for the industry, but I think it’s not as early also, to actually become responsible in terms of what model of streaming we are building. What kind of a healthy industry are we building? A healthy streaming business will be a business where you have higher engagement,” Shergill mentioned.
It is now high time that the players start thinking about generating revenue, putting it back into the creator’s pool, growing the talent, providing world class entertainment, and finding ways to make profit at the end of the day.
