Demand for Netflix originals is on average 8 times higher than that for Amazon’s originals, according to a study by Parrot Analytics.
And that's just the beginning. Demand for Netflix’s originals is 9 times higher than Hulu’s and nearly 60 times more than Crackle’s, according to the same study. Of course, part of that has to do with the fact that Netflix has more than 50 original titles, compared to the seven that Crackle produced.
Parrot Analytics came to this conclusion by measuring Demand Expressions. The firm gathered the data for its specific qualitative benchmark by collecting cross-platform, country-specific measurements of video streaming, social media activity, photo sharing, blogging, commenting on fan and critic rating platforms, as well as downloading and streaming via peer-to-peer protocols and file sharing sites.
Parrot said that the key to Netflix’s sustained popularity is the rate at which it releases new content.
“Netflix’s veteran titles still attract significant amounts of demand, such as the peak in March (weeks 9-13) from the fourth season of House of Cards and the second season of Marvel’s Daredevil. However, Netflix’s true strength is in its constant production and release of new, buzzy content: After the premiere of Stranger Things in week 28, demand increased to new heights. Other new hits such as Marvel’s Luke Cage in week 39 and The OA in week 50 continued to build on this popularity, leading Netflix to end the year with over 2.7 times more demand than the other three platforms combined,” the firm wrote in a report.
While Netflix’s original content schedule helps it outpace its rivals in terms of demand and popularity, Parrot alleged that the same timeframe for in-demand originals can be correlated to Netflix’s stock price.
According to Parrot, Netflix’s Demand Expressions and stock price have a 0.51 correlation. The firm said Netflix statements support the correlation.
After Netflix’s previous quarter, when the SVOD claimed 7 million new subscribers, grew its revenues and saw its stock jump 8.4% in after-hours trading, Netflix gave the credit to its strong catalog. Specifically, CEO Reed Hastings said subscribers won’t often sign up for a single title, but once more titles begin to appear on their radar, they are more apt to sign up for the service.