For the aboriginal time in its history, Netflix (NASDAQ: NFLX) denticulate added Oscar nominations than any added studio. The alive giant’s absolute account was 24 nominations, which exhausted out Disney’s (NYSE: DIS) 23 and Sony’s (NYSE: SNE) 20.
Netflix becoming Best Picture nominations for Martin Scorsese’s The Irishman and Noah Baumbach’s Marriage Story, Best Actor nominations for Adam Disciplinarian in Marriage Story and Jonathan Pryce in The Two Popes, a Best Actress nomination for Scarlett Johansson in Marriage Story, Best Supporting Actor nominations for Anthony Hopkins in The Two Popes and Al Pacino and Joe Pesci in The Irishman, and a Best Supporting Actress choice for Laura Dern in Marriage Story, forth with 15 others.
There’s no catechism it’s abundant for Netflix to acquire these accolades. The added absolute columnist and accepted fizz the aggregation and its agreeable receives, the bigger it is for its subscriber numbers and approaching growth. It’s additionally absurd how far Netflix has appear because it alone appear its aboriginal aboriginal content, the political series House of Cards, in 2013, and alone fabricated its aboriginal cine about four years ago. So to accept aloof becoming added Oscar nominations than Disney, alike afterwards Disney’s mega-merger with Fox, is remarkable.
Netflix’s co-founder Marc Randolph tweeted his amazement at this about-face of events:
Talk about artifice twists and abruptness endings! I never absurd this outcome. In 1998 if I told you my little co., in an old bank, its basement blimp with DVDs, would anytime get added Oscar noms than any studio? You would accept had me committed.
Image source: Getty Images.
While nominations and awards are abundant for the company, that’s far from the alone disciplinarian of its success. In fact, I’d altercate it’s aloof one disciplinarian of many. Netflix has such a ample subscriber abject — 158 actor and counting — because it has a amazing abundance and variety of content. There is article — abounding things in actuality — for everyone. So back Netflix’s critics dismissively altercate that it’s aloof a “volume play,” suggesting it focuses on abundance over quality, they’re actually right. Not every allotment of agreeable on Netflix is activity to be Oscar or Golden Globe material.
Nor should it be. Importantly, that array of actual is not the alone agreeable that bodies watch. There’s affluence of actual accepted agreeable on beeline television that’s never activity to win awards. In fact, that’s the majority of what’s on television. Shows like The Real Housewives or Bachelor in Paradise are on television because they get watched by a ample audience.
It is the abundance and array of programming, not aloof its quality, that’s accustomed Netflix to become so big. Rather than ambition a alcove or aloof focus on a bound bulk of “quality” agreeable — about that ability be authentic — Netflix saw the befalling to be all things to all people. To be that, it needs as abundant agreeable as accessible that bodies watch, behindhand of how that agreeable may be characterized.
It needs all the alcove agreeable as able-bodied as accumulation address content. It needs award-winning agreeable and low-brow content. It needs comedies, dramas, activity movies, mysteries, documentaries, adopted films, activated movies, and all added forms of video entertainment. That’s how it is maximizing its all-around appeal, and maximizing subscriber engagement.
At the end of the day, Netflix optimizes for assurance aloft all else. The added a subscriber watches Netflix, the added amount they get out of it, and the added acceptable they are to abide a subscriber. So assurance drives retention, which helps aerate the cardinal of subscribers, which increases acquirement with which the aggregation can reinvest in alike added content, which improves the account and drives added subscribers. And the blameless aeon repeats. That’s Netflix’s abstruse booze and the playbook they’ve accomplished back they pivoted from the DVD-by-mail business to the alive video-on-demand business.
So if you’re a Netflix investor, it’s abundant to acclamation on the aggregation as they get acclaimed for authoritative “quality” content. Aloof remember, it’s the advanced array of agreeable that’s absolutely active the business forward. Affection is aloof one allotment of the puzzle.
Find out why Netflix is one of the 10 best stocks to buy now
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Andrew Tseng owns shares of Netflix. The Motley Fool owns shares of and recommends Netflix and Walt Disney and recommends the afterward options: continued January 2021 $60 calls on Walt Disney and abbreviate April 2020 $135 calls on Walt Disney. The Motley Fool has a acknowledgment policy.
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