But a little bloom is off the rose. Frustration with Netflix has set in as programmers renegotiate contract renewals (to the tune of more than $7 billion, according to some estimates).
The biggest concerns are about getting sufficient metrics about how their product is being consumed, said Bruce Lazarus, CEO of Media Audits International (MAI), which helps programmers validate the subscriber information they receive from distribution platforms. When you want to sell your content to the platforms, whats the proper pricing model?
We get a little information about which of our products are being watched on Netflix, but we get no data about who exactly is watching our shows, noted John Kampfe, CFO of Turner Broadcasting System.
Netflix declined to speak with Adweek for this story.
Oftentimes data is limited to stream starts and/or unique users, and neither provide meaningful insight into the value of a programmers content, said Richard Taub, svp of broadcast and digital services at MAI. Theres no standard definition of stream starts; it could mean someone merely hit play and watched for either two seconds or two hours.
The lack of data runs counter to just about everything else in the industry, added Larry Gerbrandt, principal of the consultancy Media Valuation Partners. Netflix could say, Well renew, but now your contents older, and we want to pay you less. But if the programmers had viewership data that would show that usage is going up, or [is] at least flat, that would counter that argument.
The places we have to go to find [usage data for Netflix] are either private research companies that field panels, which you pay a lot of money to maintain, or we can do surveys. But surveys are notoriously unreliable, said one network executive. That person notes that some Netflix rivals, like Hulu (which is owned by programmers and therefore more transparent) and iTunes (which is a pay-to-play model) arent as problematic.