Netflix’s launch of their 13-segment series “House of Cards” has presented some great opportunities for them; 1) they do not having to rely on time-centric ratings, 2) they can capitalize on the viewing habits of its members; and 3) can spend less on marketing while generating higher viewership. A quote by CEO Reed Hastings and CFO David Wells in a letter to shareholders within the company’s Q4 2012 earnings report basically wraps it up: “With Netflix, members can enjoy a show anytime, and over time, we can effectively put the right show in front of members based on their viewing habits.” Enabling Netflix subscribers to “binge” in their viewing…if they’d like to.
This is gold! In fact it basically reinforces the already eroding media model both in programming and especially in measurement metrics.
As the old adage says…It’s time to wake up and smell the coffee.
It’s not that there are second screens, there are multiple screens each with select usage behavior. Programming will be consumed on the viewers “primary screen,” what ever it is, where ever it is at and whatever their age is. Measurement may be derived through the populace of engagement enabling an understanding in how to improve a viewers life, experience and enjoyment in their choices and not try to continue the 50 year history of control programming through an outdated rating system.
Here’s a thought, instead of using psychographics, pyshicalgraphics or demographics in ratings, explore a new metrics mentality. One idea might be to invent one i.e. “cycle (psycal) – graphics:” loosely defined perhaps as the “decision cycle” in measuring how an individual consumes entertainment… wherever, whenever and on whatever they choose, give it “a rating point” and “poof” a new ageless perspective magically appears.
Certainly there’s tremendous momentum in the market in establishing a new means of measurement and ratings to help the media industry advance.
However, there’s a need to break out of the past and look to where the consumption takes place albeit TV programming, films, gaming and social interaction is engaged, understand consumption/acquisition patterns and start to measure/monetize with less confusion, enabling revenue models to be fulfilled.
I applaud Netflix’s “line in the sand” decision to break the mold and start the discussion!