Sixty percent of television viewing time is now dedicated to older, established content, revealing a shift in the streaming landscape, according to National Research Group’s 2024 Future of Series report.
The Attention Economy: why Netflix’s Deal Makes Sense
The streaming wars are evolving into a battle for consumer attention, and Netflix’s acquisition of Warner Bros. Finding is a strategic move to win that fight.
- The streaming market is no longer solely about subscriber numbers,but about total viewing time.
- Netflix’s relative lack of a deep content library puts it at a disadvantage compared to established media companies.
- Competition isn’t just coming from traditional studios, but also from platforms like YouTube and TikTok.
- Antitrust regulators will likely focus on “total time spent” as a key metric when evaluating the deal.
The old “streaming wars” are over; the “attention wars” have begun. In this new arena, Netflix’s strategic acquisition of Warner Bros’ Discovery appears remarkably logical. While Netflix revolutionized content distribution, it’s still developing its content production capabilities.
Netflix’s biggest weakness is its limited library of long-standing content.Without a century of “evergreen” titles, it’s structurally behind media giants with decades of established shows and films. The Walt Disney Company, for example, recently celebrated its 100th anniversary with Disney+, while Paramount Pictures, through Paramount+, boasts an even longer history. Amazon’s 2022 purchase of MGM further bolstered its access to decades of content.
In contrast, netflix has only a little over a decade of original content, including hits like House of Cards, Orange Is the New Black, and Stranger Things. While triumphant, these shows don’t compare to the extensive catalogs of more established competitors.
Key Insight – According to John M. Yun, total hours watched is a more accurate indicator of market share then subscriber numbers.
Strategic Vulnerability – Netflix lacks a centennial library of evergreen content, currently accounting for 60% of viewing time.
Competitive Landscape – Netflix faces competition from established studios (Disney, Paramount) and emerging platforms (YouTube, TikTok).
Regulatory focus – Antitrust regulators will likely prioritize “total time spent” when evaluating the Netflix-Warner Bros. acquisition.
evaluating the acquisition also requires a shift in focus from subscriber growth to audience engagement and total time spent across all media formats, including social media. “Second-screening”-together using a smartphone while watching TV-is common, and the lines between these screens are blurring.
YouTube presents a formidable challenge with its combination of free, ad-supported content, movie rentals, and a vast library of user-generated videos.TikTok and Instagram are also vying for a place in the living room, launching dedicated TV apps and embracing longer-form video content. Netflix, thus, faces competition from both the past and the future.
unlike disney and Paramount, Netflix lacks a centennial library of evergreen content, which currently accounts for 60 percent of viewing time. This vulnerability is reminiscent of the failed blockbuster/Hollywood Video merger, where regulators focused on the number of physical stores and missed the shift to digital delivery. To compete effectively, Netflix must acquire the legacy content it currently lacks.
