Netflix has gained a reputation for its original content and exclusive collaborations with the top producers and showrunners from around the world. However, in a recent interview, Netflix co-CEO Ted Sarandos disclosed that the company is also ready to engage in licensing content from other studios and networks.
Sarandos stated that licensing is one way to offer more diversity and value to Netflix subscribers especially in countries where there is high demand for local content. He commented that Netflix does not want to purchase collections of old shows and movies but rather license fresh materials and materials that could enhance their own originals.
Another strategy to handle the growing competition in the streaming industry due to other players emerging with their own platforms and content is licensing. Sarandos stated that Netflix is not concerned about subscribers defecting to other services but ensuring that customers are occupied and satisfied with Netflix.
According to Sarandos, licensing refers to paying a certain amount of fee to the owner of the content for a given period that Netflix will stream the content exclusively or non-exclusively. He said that Netflix does not provide any information or revenue to the content owner, and that licensing agreement depends on expected results of the content performance.
According to Sarandos, Netflix has always tried to introduce new means of making and distributing content such as interactive series, podcasts, games, and live experiences. He stated that Netflix aims to be the best entertainment service world over, and licensing is one of the means of attaining this.
