New Report Explores Demand for Netflix Originals

New data from Parrot Analytics and Kagan projects that in the U.S., the popularity of originals on Netflix will overtake that of licensed content on the platform in October 2019.

Using Parrot Analytics’ Demand Expressions metric, the report found that demand for content on all major SVOD platforms in the U.S. has increased over the past year. On Netflix at present, the most in-demand content is licensed fare. However, over the 12 months analyzed the share of demand for Netflix originals grew by an average of 1 percent each month. From July 2017 to June 2018, Netflix’s reliance on licensed content dropped by 10.9 percent. Should this trend continue, by October 2019, Netflix will generate 50 percent of U.S. audience content demand with its originals.

“The future for the industry is likely to be even more crowded and the winners are still unknown,” said Deana Myers, research director at S&P Global Market Intelligence. “Walt Disney is expected to debut its SVOD service in 2019 and its proposed buy of the studio and libraries of 21st Century Fox will add a vast amount of content to this service. Other anticipated SVOD launches include those by Apple and WarnerMedia. We estimate the overall U.S. SVOD industry has many strong years of growth in its future, particularly as competition from Disney and Apple could impact the market.”