As a long-time Netflix enthusiast and someone who has witnessed its meteoric rise from a small DVD rental service to a global streaming giant, I find Ted Sarandos‘ approach to be both strategic and humble. His insights into the future of entertainment, particularly regarding generative AI, live sports, and events, are intriguing and thought-provoking.
When Ted Sarandos, Netflix’s co-CEO, engages in conversation, the entertainment industry pays close attention. Therefore, when he participated in a casual discussion with Emma Tucker, the editor-in-chief of the Wall Street Journal, at the WSJ Tech conference on Tuesday, it was certain that many eyes in Hollywood would be eagerly awaiting Ted’s insights.
Sarandos, on the other hand, didn’t offer many new insights. During the discussion, he touched upon Netflix’s stance regarding generative AI, live sports and events, advertising, gaming, and topics already addressed in last week’s quarterly earnings summary.
As a gaming enthusiast, I was also questioned about another significant event unfolding in the entertainment world this week – the succession drama at Disney. Next year, James Gorman will step into the role of Chairman, and everyone’s wondering who will take Bob Iger’s place as CEO.
If Gorman contacts Sarandos regarding the job, it’s unlikely Sarandos would respond, as the topic is currently of no concern to him.
But would Netflix’s co-CEO model work at a company like Disney?
I find it challenging to endorse this program to a firm whose operations I’m not fully acquainted with, especially their unique corporate environment or culture,” I expressed. “Although I grasp their business fundamentals, I still need more insight into their specific work ethos.
Reed Hastings, the founder of Netflix, expressed his intention back in 1999 to establish a company that would endure beyond him, indicating his concern about succession. I believe this thought was also present when we began working closely together around ten years ago, and it became more apparent three to five years ago when I was formally appointed co-CEO. As Reed transitioned into the role of executive chair, we had the opportunity to demonstrate that for Netflix, the co-CEO model works exceptionally well.
Ted Sarandos emphasized that while the company isn’t actively seeking more live sports, he wouldn’t rule it out entirely. He explained, “We’re currently in the live events business.” He further added, “There’s a unique and thrilling aspect to everyone watching the same event simultaneously. It doesn’t happen frequently, which makes these moments all the more special.
As a gamer, I firmly believe that the leagues are masters at fostering fan bases, and they deserve to pocket all the profits since distributing the money in full-season league sports is a slim business. However, if we can offer them something of worth – which I think we uniquely provide – then it’s possible to strike a deal that benefits everyone.
Regarding the application of generative AI, Sarandos expressed his belief that it will significantly affect the nature of our products. However, he admitted that he is uncertain about how much impact it might have on the content side.
He believes that advanced general AI could significantly improve existing systems, making them operate more efficiently. This enhancement might involve selection, merchandising, and user interface design.
He considers Generative AI as a resource for artists to generate content, rather than replacing creators like Netflix. He sees potential if it can pass the crucial test, which is whether using this tool can improve the quality of the content produced. If so, it will be revolutionary and beneficial. However, if not, he believes it may simply be part of the current hype surrounding AI.
Furthermore, although Netflix operates in advertising, gaming, and live events sectors, Ted Sarandos stated that they don’t intend to challenge in the realm of user-generated content, which is currently dominated by platforms such as YouTube and TikTok.
He pointed out that this platform could serve as both a nurturing ground for budding storytellers and content creators, which is wonderful, yet it can also be seen as a means to pass time idly. He emphasized the difference between occupying one’s time and wasting it, encouraging caution against becoming too engrossed in keeping up with everything that’s trending. He acknowledged the intrigue and excitement that social media and user-generated content bring.
When considering their monetization strategy, it’s clear that it wouldn’t allow us to produce content at the level and extent we achieve on Netflix. This model doesn’t generate enough revenue for such endeavors, and the creators have to invest all their own funds into it. Therefore, I believe the model itself restricts the type of content that can be produced. In terms of programming style, they operate differently from us, but they are a popular way people consume TV. So, while I don’t ignore it completely, I do pay attention to it.
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2024-10-22 22:55