Netflix's Growing Disparity Between Original Movie Supply, Demand

The following is a selection from Brandon Katz of Parrot Analytics.

In recent years, Netflix has hit the gas when it comes to turning out original movies, with a 935% increase in titles from 2017-24. That can create some buzz in both the short- and long-term, but Parrot Analytics data reveals that 2023 and 2024 created a growing gap between supply and demand for original movies on the streaming giants' service.

• From 2020-24, the share of original films in Netflix's movie library increased from 15.5% to 19.8% – a climb indicative of a larger investment in that format.
• But despite the increased investment and outputs, viewer demand for those originals dropped considerably, from 28.3% in 2020 to 12.3% in 2024; while licensed content saw demand share surge from 71.7% to 87.7% in the same timeframe.
• When combined, the incredible (and growing) disparity between supply and demand puts Netflix's original film strategy at a bit of a crossroads, that would encourage the streamer to pump the brakes on title volume in favor of fewer, better movies.

[read the rest of Brandon Katz's post on TVREV]