"Netflix has won the paid streaming wars - and its rivals are feeding its dominance. Traditional Hollywood giants give Netflix some of their best shows, and they perform well. Five studios account for 22% of Netflix's library - and 32% of its viewing hours, a new report from research firm Owl & Co. shows. The report is based on Netflix's engagement reports and data from Ampere Analysis."
"The top supplier is Comcast's NBCUniversal. It provides 3.7% of Netflix's content hours and 8.4% of its viewing hours, helped by popular series like "Suits" and "House." Disney has been less open to licensing - it also comes closest to competing directly with Netflix - but has given Netflix some of its hits, like "Prison Break," contributing to a spike in Disney's viewing hours for Netflix in the second half of last year."
"When Netflix first launched its streaming service, few anticipated it would become a global juggernaut, and studios were happy to license their content to the upstart. That practice dried up as studios began hoarding their shows and movies to build their own streaming services, and Netflix started commissioning its own originals, like "House of Cards." A few years later, Hollywood hit the panic button about streaming's business prospects and began to be more open to licensing to Netflix again."
Netflix controls the largest paid streaming audience, with five studios supplying 22% of its library but accounting for 32% of viewing hours. Comcast's NBCUniversal is the top supplier, providing 3.7% of content hours and 8.4% of viewing hours driven by shows such as "Suits" and "House." Disney has licensed select hits like "Prison Break," producing spikes in viewing despite positioning as a close competitor. Except for Sony, the top suppliers operate their own streaming services that compete for subscription and advertising revenue. Licensing creates a tradeoff: studios receive steady cash and exposure while ceding direct subscriber relationships and long-term upside to Netflix.
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