Netflix's First Engagement Report Has The Potential To Uplift The Entire Media Industry

The writers’ and actors’ strike that brought even the world’s biggest entertainment company The Walt Disney Company DIS to its knees also changed the streaming universe which can be described as quite secretive, beginning with the streaming king, Netflix Inc NFLX. But, Netflix has just set a precedent with its first ever engagement report where it revealed more information about its audience.

The Value Of Such Reports Goes Beyond Finding Out ‘What Works’.

The statistics that Netflix released helps to understand what works for subscribers. It also helps streaming providers align better with their target demographics and empowers them to retain talent that is behind the magic. Even the mighty Disney has been facing intense box office issues this year. Since the end of the pandemic, Disney recorded quite a few box office flops that further intensified the pressure on its reinstated CEO Bob Iger that himself acknowledged these creative missteps, which is quite a rare occurrence for Disney. Iger admitted that the released content has not met the company’s quality standards, explaining that Disney focused on quantity at the expense of quality. In response, Disney was slashing its costs under a strategy that includes making fewer movies. Next year, Disney will only be releasing Deadpool 3. Moreover, the streaming venture costed Disney more than $10 billion it lost since its 2019 launch. Although losses narrowed, Disney is still facing challenges on the streaming front. But Iger remains confident that Disney+ will reach profitability by the end of next year. Expectedly, even Disney took a page from Netflix’s book, such as cracking down on password sharing.

Leading The Way To Uplifting The Quality Of Overall Media Content

Netflix, Disney, along with Amazon.com Inc AMZN Amazon Prime strongly guarded their viewership statistics, but Netflix made a big step towards greater transparency, leading the way for its streaming rivals to use this precious information enhance their content production by understanding their viewers better.  Leaving competitive concerns aside, Netflix opened the door for a potential change in the dynamics of the streaming industry. On a greater scale, the bigger picture is that such reports could play a big part in lifting the quality of the overall media and entertainment environment, one that often acts as our classroom, perhaps even more often than actual academic classrooms. In these dark times, the power of the media to shed some light cannot be underestimated.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

This article is from an external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.