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Business Wars

Netflix vs Blockbuster - Binge | 6

Business Wars

Wondery

History, Business, David Brown, Management

4.613.2K Ratings

🗓️ 15 February 2018

⏱️ 27 minutes

🧾️ Download transcript

Summary

Hollywood execs thought Netflix was crazy to give up advertising and spin off opportunities by letting viewers flop on a couch and watch a whole season of a show all at once. But Netflix knew it was on to something. All of their studies and focus groups revealed something new: viewers who binged content formed an emotional attachment to Netflix. 


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Transcript

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0:00.0

Hey, prime members, you can listen to business wars ad-free on Amazon music. Download the app today.

0:08.0

It's January 31st, 2013.

0:12.2

The head of content at Netflix, Ted Cerandos, walks into the office of David Fincher and acclaimed filmmaker.

0:19.2

They smile and Cerandos slides into a chair.

0:22.8

From their demeanor, you wouldn't guess both men's reputations are riding on an enormously expensive experiment that launches at midnight.

0:32.8

How's it going, David? You ready?

0:34.8

Yeah, I think we've really got something big here.

0:37.8

But the first time, viewers will get the entire season of a new show from the first episode to the very last, all at once.

0:46.8

Fincher's adaptation of a British political thriller represents Netflix's first big investment in original programming.

0:54.8

Launching all the episodes at one time, that's a bold move that Cerandos believes Netflix must make if it wants to dominate internet television.

1:03.8

There's no choice, really, at C-season. If Netflix is going to compete with HBO, it has to stream its own original quality content.

1:13.8

Fincher's adaptation is compelling, obsessively so, in fact.

1:19.8

And Netflix's data shows overlapping audiences for the show's top stars, and for Fincher himself, a two-time Oscar winner.

1:27.8

Three years earlier, when Hollywood found out Fincher wanted to make a TV series, well Studio Head started getting in line.

1:35.8

After all, Fincher was the name behind some real winners like the Social Network, Seven, and the Curious Case of Benjamin Button.

1:43.8

In fact, Fincher was so much in demand that he set up a Saturday pitch marathon on Sony's lot to hear all offers.

1:50.8

Cerandos skipped the scrum and instead scheduled a meeting at Fincher's office.

1:55.8

First, he shared his data.

1:58.8

And then he cut to the chase.

2:00.8

Cerandos knew what he was doing, speaking to the heart of a creative.

2:06.8

David, I know there are a million reasons not to make house of cards with Netflix, but I'm going to give you a couple of reasons why it makes sense for you.

2:14.8

First, here's a guarantee. Two seasons with no pilot.

...

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