The value of a piece of content on Netflix is directly measured by the number of viewing hours it generates. However, the quality of a program and its efficiency have been separated. This was recently confirmed with the cancellation of Netflix’s acclaimed series Mindhunter because it did not attract enough viewership to justify a third season. The series’ director, David Fincher, revealed that the series was expensive and did not generate enough viewership to justify its continuation.
This fact illustrates the importance of efficiency in Netflix programming rather than quality or prestige. The balance between costs and return is the determining factor in the continuation of a program. Netflix’s content business is about business, so investments are required to be able to meet minimum targets. The efficiency of the content is translated into a ratio that is calculated based on the cost per hour watched.
Ted Sarandos, CEO of Netflix, stated that original programming was more efficient than licensed content. Any content that is released on Netflix has a value directly connected to the number of viewing hours it is capable of generating. The efficiency of the content, therefore, translates into a ratio that is calculated based on the cost per hour viewed.
The cancellation of Mindhunter has increased the debate around the relevance of the criteria used for the renewal and cancellation of programs and the catalogs resulting from such policies. Quality programming and efficient programming have been separated, and efficiency now seems to matter more, due to the saturation of the market, the acceleration of the commercial life of streaming products, and the volume of premieres.