Additionally, Katz noted that recent theatrical concert films from pop stars like Taylor Swift scored well among women under and over 35 in awareness and interest, citing research from Greenlight Analytics.
“Those are key demos for Netflix,” Katz said. “Juicy celebrity interviews also fit into this category, especially given the genre’s viral potential on social media.”
Katz said that unscripted programming is typically less expensive and could benefit Netflix when it comes to cost controls, resource allocation efficiency, and free cash flow.
“That’s important because profit is its biggest advantage in the streaming wars and its primary metric of success now that it no longer reports subscriber growth,” Katz said. “It wants to lead with its biggest stick.”
Besides the immediate benefits of a Spotify deal, leaning into music and competition series, which Katz said do well globally, could position Netflix for future success as it looks to build its advertising model.
“This positions the content slate as a natural showcase for advertising, which we all know is Netflix’s biggest emphasis at the moment,” Katz said. “It’s far easier to insert programmatic ads into a reality singing competition versus Stranger Things Season 5.”
