One year after “Squid Game” took the world by storm, the groundbreaking Netflix original is on track to bring in more than $2 billion to Netflix through 2027, according to Parrot Analytics’ new Content Valuation measurement system. “Squid Game” has the potential to become Netflix’s most valuable title if it continues to perform on its current trajectory.
The data also reveals original hits like “Squid Game” and “Stranger Things” can drive significantly higher ROI for major SVODs than big budget original movies or nine figure licensed series.
“In an increasingly streaming-focused world, viewership alone doesn’t translate into direct growth or subscribers. Capturing consumer demand through a more comprehensive set of signals of intent is the most effective approach to determine what’s valuable and what’s not,” said Parrot Analytics Vice President of Applied Analytics, Alejandro Rojas. “What does audience demand tell executives about their overall product, why are people subscribing to a streaming service, who is at high risk of churn, how and when do you intervene to impact the number of customers subscribing month after month.”
Parrot Analytics’ Content Valuation measurement system can determine the value of any title for any distribution service by measuring its historic and forward-looking impact on user acquisition and retention for that service, within each market.
“The entire industry is grappling with key questions right now about the future of content, and we’re excited to roll out an empirical solution to help the media and entertainment industry make sense of today’s attention economy,” said Parrot Analytics CEO Wared Seger. “Content Valuation will help global entertainment leaders help sort through the uncertainty facing the industry – determining whether or not to acquire or produce a title, where it should be released and whether to go theatrical or not, the overall value contribution of a title to an existing library, the value of an entire library, determining projected value across multiple seasons for a TV show or the value of a film to a streamer five years after the fact, just to name a few.”
Parrot Analytics’ Content Valuation system can:
Measure the actual revenue contribution of any title to any platform in each market, and what percentage of that revenue was derived from adding new subscribers or retaining existing subscribers in that market.
Measure the forward-looking revenue potential (subscriber addition and retention) for new productions, new seasons, and library titles to any platform in each market.
Model scenarios determining the best distribution platform for any title to maximize its value.
Measure whether a movie would perform better theatrically or direct-to-streaming.
Measure the value contribution of talent to each title in each market.
Adoption of the Parrot Analytics Content Valuation system will impact every step of the global content creation pipeline, helping to level the playing field between all stakeholders in the industry.
“What Parrot is helping me to do is not just to monetize, you’re helping to impact the way people feel,” said Caryn Mandabach – producer of iconic TV series such as Peaky Blinders, That 70s Show, and Roseanne – in October at the MIPCOM conference in Cannes. “We have learned from working with Parrot that what connects us is more than what divides us. When I learned where it’s popular, and who you know, which cohort, it really made me think. It’s powerful.”
Parrot Analytics is rolling out its Content Valuation system to creators, talent, producers, content investors, agencies, studios, distributors, networks, streaming services, brands and advertisers. BCS Bureau