Netflix’s Tauzia on the importance of partnerships

Over the past decade Netflix has emerged as the number one global SVOD platform with 214 million subscribers worldwide.

Netflix’s 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 this month, the role that partnerships have played in the SVOD’s rise was underlined by Netflix VP of partner solutions Vincent Tauzia.

“We’re just getting started really. It took us about 10 years to get to our first 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?”

He said that building such a service requires focusing on a few core areas. The first is “great value content – great stories that people will connect with, love and literally can’t wait to watch.” He cited shows such as Lupin, Squid Game and Money Heist.

Tauzia added: “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 Netflix 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.”

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As such, Netflix 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 singled 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.”

Also key, said Tauzia, has been integrating Netflix 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 cannibalization. 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.”

Tauzia said that Netflix was 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,” said Tauzia.

He said that Netflix works hard with its operator partners to integrate Netflix seamlessly into their product and in their commercial propositions. “That is the core of what we do in partnerships in Netflix.”

“First and foremost, we want to make sure Netflix is easy to access on the set top box…we also make it super easy for consumers to get Netflix bundles without TV subscriptions, or broadband or mobile.”

He said Netflix 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.”