06
STRONGERTOGETHER
#IBC2021
NETFLIX’S TAUZIA ON THE IMPORTANCE OF PARTNERSHIPS
BY TIM DAMS
Over the past decade Netfl ix has emerged as the number one global SVOD platform with 214 million subscribers worldwide. Its growth has often been attributed to its aggressive spend on new content, with the streamer having earmarked $13.6 billion for investment in programming in 2021. However, in an IBC Digital keynote interview, the role that partnerships have played in the SVOD’s rise was underlined by Netfl ix VP of partner solutions Vincent Tauzia. “We’re just getting started really,” he says. “It took us about 10 years to get to our fi rst 100 million streaming members. It took us less than half that time to get to the next 100 million. So how do we get to the next 200 million members?” Building such a service requires focusing on a few core
areas, he explains. The fi rst is “great value content – great stories that people will connect with, love and literally can’t wait to watch.” He cites shows such as Lupin, Squid Game and Money Heist. Tauzia adds: “We have to do it in a way that provides an amazing experience, better than the experience consumers have with other entertainment options. And that experience has to constantly improve and re-delight our users – we want to surprise them; we want them to really enjoy being on the Netfl ix service. “If we do a good job at that, more people will trust us to entertain them and give us more of their time, and they
will value our service even more. We will then be able to invest all that value and create more great content and ultimately a better user experience.” As such, Netfl ix looks to create a virtuous circle:
create more and better content; improve the member experience; grow the member base; and then increase investment in content. To create the best experience for members,
Tauzia singles out engineering product design and engineering resources, like slick transitions to content, attractive pause screens or smart post-play features, as well as high-quality UI, and video and audio features such as 4K and HDR. “We work very closely with many partners to bring this experience – the content and the product – to our members,” he adds.
Vincent Tauzia, Netfl ix
Also key has been integrating Netfl ix into consumer set-top boxes, smart TVs, consoles, platforms and TV and mobile bundles. “It took time to convince operators because some of them were afraid of cannibalisation,” Tauzia says. “We are way past that. Several years ago, this perspective shifted. More and more TV operators see us like another premium channel and consider the actual value in integrating with us into their set-top boxes and into their overall offerings like bundles.” He says that Netfl ix is now integrated into the platforms
of around 200 operator partners around the world. The partnerships span device integration, billing and payments, and co-promotion. “We expect to add more
and more operator partners over the coming years as we seek ways to better connect with the next 200 million members and to create value for us,” he adds. According to Tauzia, Netfl ix works hard with its operator partners to integrate Netfl ix seamlessly into their product and in their commercial propositions. “That is the core of what we do in partnerships in Netfl ix.” “First and foremost, we want to make sure Netfl ix is easy to access on the set-top box,” he continues. “We also make it super-easy for consumers to get Netfl ix bundles without TV subscriptions, or broadband or mobile.” Netfl ix also looks to create impactful commercial offers with its partners. The partners then work on deeper integration and innovation together. “As we work closer together, we create a better user experience – our joint subscribers love it, and it translates into more subscriber satisfaction,” he concludes.
BY TIM DAMS
INSIDE PLUTO TV’S STRATEGY AND GROWTH PLANS
FAST channels like Pluto TV bring together “the best of two worlds” – linear TV and digital platforms for viewers and advertisers, according to Olivier Jollet, SVP and general manager of Pluto TV at ViacomCBS Networks International. In a keynote interview with IBC Digital, Jollet provides insight into the fast-growing Pluto TV platform. Founded in 2014, it is now a $1 billion-a-year business in terms of revenue. Available in 26 markets globally, including the US, Latin America and Europe, the ad-supported service has 54 million monthly active users. It has live channels, often based around specifi c shows like Most Haunted or genres such as true crime, and an on-screen programming guide to replicate the traditional TV viewing experience. Jollet says Pluto TV’s current footprint of 26 markets was “the beginning of the story” and that it will be launching in more markets. Coming up next is a move into the Nordics. ViacomCBS Networks International has partnered with Scandinavia’s leading streaming company Nent Group to launch a new Pluto TV service across Sweden, Denmark and Norway in 2022. Under the partnership, Nent’s standalone AVOD service, Viafree, will be integrated into Pluto TV. Jollet says Viacom will bring its content, tech expertise and global scale to the partnership, while Nent will bring
Olivier Jollet, Pluto TV, speaking with Atonik’s Nathalie Lethbridge
local content and advertising expertise. “I think we are building a win-win partnership on both sides, and it is clearly a model that we are willing to replicate in other regions or countries, because we truly believe there is something big in doing those partnerships.” Looking ahead, Jollet says Pluto TV will “continue expanding with an eye on Asia and Africa”. He notes that ViacomCBS is taking a very different
approach to digital platforms than many rival media groups, describing Pluto as “free in the age of subscription, linear in the age of on demand, and ad-supported at a time where most people thought ad-supported had no future”. Jollet adds that FAST services like Pluto TV “bring back the ‘lean back’ experience into streaming” at a time of huge on-demand choice from SVOD services. FAST and
SVOD services are often complementary for users, he believes. Sometimes viewers are “more into the lean back experience” of having channel editors take the decisions for them about what to watch, just like traditional linear TV. But other times, viewers want to have more freedom to choose what they want to watch through on demand SVODs. As well as convincing audiences to watch Pluto TV, it’s important to make the ad experience enjoyable for them, says Jollet. Advertisers, he explains, have been one of the biggest losers from the boom in SVOD services, which don’t carry commercials. However, “everyone knows that TV is still the most powerful media when it comes to brand building”. FAST channels like Pluto TV bring the best of TV and the best of digital for advertisers. “FAST through the TV is a digital product. We can measure and we can target way better than TV can, and really serve the needs of advertisers whether it is in terms of audience targeting, frequency capping or in terms of measurement to really know how many people really watch an ad.” Pluto TV had an ad completion rate of 95%. “People don’t skip the ads,” he adds.
Watch both interviews on IBC Digital
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