Netflix is continuing to put the pedal to the metal on original TV shows and movies, and the company recently shared its plan to have 50% of its library be originals within the next few year.
That plan centres around quantity, but also around variety.
Netflix’s goal is to release some piece of original content that will appeal to each subscriber, every month, according to comments by Netflix CFO David Wells, recorded by Variety.
Netflix needs to get people of all ages and locations excited about originals, which means a diverse catalogue. This is especially true in the US, where some are already whispering about market saturation.
In a note on Monday, analysts at UBS highlighted that Netflix, in the US, is underpenetrated among older consumers and those living in Middle America, according to Netflix management.
“These consumers represent an opportunity for subscriber growth if Netflix can convince them to sign up and stay with the service,” the analysts wrote.
One big area that could help Netflix snag them is original content. “Netflix offers original series that appeals to Baby Boomers such as ‘Grace & Frankie’ (starring actors popular among that generation including Lily Tomlin and Jane Fonda) and ‘Longmire’ (which was cancelled after 3 seasons on cable network A&E because its audience was deemed too old for advertisers, Netflix then continued the series as an original), and also ‘The Ranch,’ a comedy starring Ashton Kutcher set on a ranch in Colorado.”
Research by UBS suggest that, at least on the age front, there is a difference between subscribers who watch different originals. Here is what UBS’s survey data said about the ages of people who watched nine popular Netflix originals:
So if Netflix is looking to appeal to older viewers, “Longmire,” which had an average age of 37, seems to be working.
But UBS didn’t see the same efficacy in “The Ranch’s” location targeting. Here’s how people in different areas of the US rated it:
People in the Midwest actually under-indexed on the show.
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