In the past decade, Netflix subscribers knew little about how streaming trends affected the larger picture. The streaming service giant has always been protective about its methods of measuring viewership. As the list of streaming services continues to grow, however, Netflix's executives have decided to be more transparent about the process. An October 2019 letter sent to a UK parliament committee reveals that Netflix uses three categories when measuring viewing figures: "starters," "watchers," and "completers." What these categories means reflects how Netflix measures viewing figures, and how these figures factor into the streaming service's business plan.
Whereas traditional network television viewership numbers are collected by the third-party Nielsen Media Research, otherwise known as the Nielsen Ratings, Netflix has opted for a different model altogether. Traditional networks use their ratings information to sell advertising, whereas Netflix is funded primarily through a subscription model. Because Netflix delivers its content digitally, it can track its own viewing statistics much more accurately than broadcast television can, and can even observe viewing habits of its subscribers. For example, Netflix's most popular movie releases, which are used to draw in subscribers, are not necessarily the service's highest-rated content: the critically-panned Adam Sandler murder mystery was 2019's most watched title.
Now that the Streamings Wars have forever changed how and where consumers access entertainment, Netflix’s research methods have proven to be valuable for practical marketing. These statistics are used for planning and promoting movie or television series. Now, Netflix subscribers have the ability to be more conscientious about how personal streaming time can affect executive's decisions.
For Netflix, “starters” correlate with “households that watch two minutes of a film or one episode.” As many streamers know, movies or series are often left behind for various reasons. Some don’t have the opening hook, or intrigue, that streamers are looking for, while others are lost in the shuffle and forgotten about in favor of other titles.
Netflix's “watchers” are "households that watch 70 percent of a movie or one episode in a series.” In relation to Netflix movies, this applies to people who are mostly invested in the viewing experience, even if they ultimately don’t engage with the final act. As for Netflix original series, the concept for “watchers" and “starters" is the same: subscribers who at least check out the first installment. Netflix uses the “watchers” statistics for brand promotional purposes, which explains the hype behind the 2018 film Bird Box, a thriller starring Sandra Bullock that released shortly before Christmas. In order to report big numbers, Netflix simply needed people to watch 70 percent of the film during the Holiday season.
The “completers” group undoubtedly helps Netflix pinpoint the most entertaining and engrossing productions. In this category, viewers are “households that watch 90 percent of a film or season of a series.” Of course, the 2019 cancellations of critically-acclaimed series like The OA and Tuca & Bertie imply that Netflix isn’t always interested in long-term filmmaking innovation over accessibility. Both of the aforementioned series have strong fanbases, but clearly didn't have the popcorn entertainment factor of a popular Netflix (NBC) series like The Office — one that theoretically appeals to the “watchers.” Similarly, the news that Netflix has ordered a second He-Man series is likely tied to She-Ra and the Princesses of Power performing well with "watchers" and "completers." In 2020 and beyond, Netflix’s viewer categorizations will allow streamers to be more immersed in the data side of the experience, but it's likely that many subscribers will go back to their regular streaming routines and follow Netflix’s lead.
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