- Netflix talked up its ability to “create a brand almost out of thin air” during its third quarter earnings call on Wednesday.
- Netflix’s content chief Ted Sarandos noted how the stars of Netflix’s comedy movie “Tall Girl” were mostly unknowns, but managed to significantly build their social-media followings because of the movie.
- The movie was watched by 41 million households in its first 28 days of release, according to Netflix.
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Netflix talked up its own “brand creation” compared to Disney’s collection of established IP during its third quarter earnings call on Wednesday.
Disney will enter the streaming wars when its own platform, Disney Plus, launches November 12 with content across its many mega-popular franchises like Marvel, “Star Wars,” and Pixar. But Netflix’s content chief Ted Sarandos didn’t seem bothered by the incoming competition and is confident in Netflix’s ability to “create a brand almost out of thin air.”
READ MORE: Netflix climbs 10% on international and earnings growth, despite missing subscriber targets for the second straight quarter
“I think established IP has a leg up with consumers,” Sarandos said. “They know what they’re getting into, there’s pre-built in excitement, it makes the marketing a little easier. But in general, don’t forget the power of brand creation. What is the value of a franchise? It’s really the value of brand creation and how you scale off of it.”
Sarandos noted how the stars of Netflix’s comedy movie “Tall Girl” were mostly unknowns, but managed to significantly build their social-media followings because of the movie (it was star Ava Michelle’s first feature film role and she now has 1.3 million followers on Instagram).
Netflix said in its Q3 earnings report that “Tall Girl” was viewed by 41 million households in its first 28 days of release (it debuted on the service last month).
“That’s the ability to create a brand almost out of thin air, which I think is every bit as valuable as drafting off of a bunch of other franchises, waiting for them to burn out” Sarandos said.
READ MORE: Netflix says ‘Stranger Things’ season 3 was watched by 64 million households in its first month, but it couldn’t beat Adam Sandler
He added that Netflix does see the value of its franchises like “Stranger Things” and “Black Mirror” and is “excited about the opportunity to do it ourselves.”
“But I think about it not as franchises are better than non-franchises,” Sarandos continued. “Great stories are what matter and the way that they reach consumers really makes a difference.”
“Stranger Things” is Netflix’s most popular show and season three was its biggest season yet. Netflix said in its report that it was watched by 64 million households in its first month of release. The series has been the most in-demand streaming original series this year since season three debuted in July, according to weekly data provided to Business Insider by Parrot Analytics.
Netflix downplayed the incoming competition in its report, noting that it’s “been competing with streamers (Amazon, YouTube, Hulu) as well as linear TV for over a decade.”
“While the new competitors have some great titles (especially catalog titles), none have the variety, diversity and quality of new original programming that we are producing around the world,” the report said.
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