SME#14: What a Netflix FAST Hub could look like
Streaming Made Easy #14
Welcome back to Streaming Made Easy. This week, we imagine how Netflix could implement a FAST Channel Hub on its platform.
Today at a glance:
Analysis: The Imaginary Netflix FAST Hub
Streamer snapshot: US Streamer, Lionsgate+
Content recommendation: “Catastrophe” by Irish Wonder Woman
💡 Analysis:
“We want to be the safe respite where you can explore, get stimulated, have fun, enjoy, relax — and have none of the controversy around exploiting users with advertising”.
It’s Reed Hastings speaking in 2020.
Hastings did what we call in French “retourner sa veste” (i.e. he changed his mind big time) as Netflix did enter the advertising space last November. Now that they carry ads, the entire industry expects them to launch FAST channels. We’ll know when they want us to know. Until then we can only debate about whether they should go in or not.
This week, I want to take for granted that they will get into FAST and have fun (it’s the Winter holidays after all!) speculating about the roll out of a Netflix FAST Channel Hub.
© Product Innovation - Netflix
What I love most about Hastings’ quote is the focus put on empowering customers to Netflix and chill. The problem is that in 2023, customers are struggling to explore and it’s no longer relaxing to choose your next piece of content. It’s Netflix (or any SVOD for that matter), search for 30’ and chill.
That’s where FAST could fit right in and the numbers in the US alone back this consumer trend: consumers are fond of this new(ish) lean back viewing experience. Exit scrolling for hours to find something to watch, consumers want to mix and match and some nights rely on the choices made by professional programmers.
So what could that look like within Netflix?
Netflix just announced sunsetting the shuffle button which was meant to surprise us. It didn’t.
In France, they implemented a feature called “Direct” (aka Live) where you can tune into a feed at any time. I couldn’t find any insights into whether this was successful or not.
What I envision is the following:
UX/UI wise:
Similar to the “Your heroes” row for kids profile at the top, we could have a “Your FAST channels” row.
For adult profiles, the main banner could be an auto-play FAST channel.
Across the homepage, we could use the Games banner or the “Just for laughs” banner to showcase a FAST Hub.
Why not build its own EPG.
Content wise:
Will they focus on their IPs / originals? Go for 3rd party content or even syndicate existing channels?
Focus on their originals
With Netflix Originals now making up 50% of overall US Library, the Netflix Originals vault is any programmer’s paradise.
According to data compiled by What’s on Netflix (last count on November 2022), here’s what they could easily tap into (provided the necessary rights have been cleared during the ad-supported clearance process last year):
Netflix Original Documentaries: 615 titles
Netflix Original Kids Series & Movies: 97 titles
Netflix Original Stand-up Specials: 262 titles
Netflix Original Reality TV: 121 titles
Netflix Original Anime Series & Movies: 126 titles
Netflix Original Movies: 1720 titles
Netflix Original Series: What’s on Netflix didn’t create a TV Series list. If anyone has the number of Netflix Original TV Series, feel free to reach out, curious to know.
Within each category, the options are so vast, I had to pick only a few. Come share your own ideas in the comment section.
4 categories have my preference for FAST channels featuring Netflix Originals.
Why?
FAST isn’t appointment TV meaning that viewers tend to tune in and watch whatever is on. No need to think about where you are at when you stumble upon an episode. Docs/True crime, Stand up, Reality TV and Kids will fit right in.
Looking at their Top 20 of all time, there isn’t much in there that fits a FAST channel exploitation in my opinion. Netflix TV Series indeed present two inconveniences:
Netflix TV Series - Comedy: they don’t have many originals of the caliber of a “Friends”, “The Office”, “How I met your mother”, which I would watch endlessly. They don’t have the 10 seasons+ either. Maybe an Arrested Development FAST channel or an Emily in Paris one.
Netflix TV Series - Drama: Drama shows aren’t great FAST candidates in my opinion. There’s an episode ordering and an editorial arc to respect that’s why I didn’t put a Stranger Things FAST Channel. So unless the Series are procedurals (like CSI, Law & Order), these channels would turn into “Spoiler alerts FAST channels”.
In any case, FAST shouldn’t necessarily focus on the top 20 titles. Any platform you talk to will tell you that FAST channels actually enable them to surface existing titles viewers haven’t watched on demand yet due to discoverability challenges.
Go for 3rd party content
I wouldn’t watch a “Stranger Things” channel but I would definitely watch a “90s vibe” channel featuring titles like shoulder content around “Stranger Things”, “The movies that made us”, 90s cult movies like “The Addams Family”, “ Goonies” and more.
For Netflix, this means licensing content from others.
FAST could open a new avenue for distributors who often say that Netflix is now picking a title here or there from them but gone are the days where streamers were buying movie packages or 25M$ a title (on that topic, I enjoyed this read about the Berlin Market).
Syndicate existing 3rd-party channels
I don’t see any of the big streamers, who are also active in FAST, license content to Netflix, at least not just yet. WBD licensed theirs to the likes of Roku and Tubi but I guess they don’t view them as direct competitors.
Tons of other players would be a great fit and they would love the reach Netflix could bring them. A couple of names come to mind: Filmrise, All3media, Fremantle, Sports brands like the NHL or DAZN would tick the sports box for Netflix.
Whatever Netflix ends up doing in FAST, I truly love these exciting times we live in as an industry. So to all the streaming doomsayers, I say there is still tons of business models, content propositions, features to roll out to delight viewers!
📺 Streamer snapshot: Lionsgate+
Lionsgate+, formerly known as Starzplay, is a US SVOD service. It was launched in 2016 as the Pay TV Network Starz entered the OTT scene to compete with HBO and Showtime’s standalone subscriptions.
Looking at the decrease of its Pay TV subscriber base, Starz made the right decision to invest early on in OTT.
The brand went international and is available in 35 markets outside of the US and has 13.3M Lionsgate+ OTT subs. On March 31st, the service will be shutdown in France, Germany, Italy, Spain, Japan, the Nordics and the Benelux, due to low performances.
Lionsgate+ is an interesting example of the challenges faced by streamers outside of the Top 5s. As they cater to the same segment as the likes of Netflix and Disney, they now struggle in some key markets to establish their brand, despite great content (e.g. the Power saga, gems like Normal People or Ramy) and a very smart and ubiquitous distribution strategy (standalone apps, Amazon channel service, telco deals etc.).
Last week, they said it, they want to be the companion streaming service as evidenced by the MGM+/Starz, Globo/Lionsgate+ bundles.
Starzplay Arabia operates separately since their 2015 debut in the MENA region and have 2.1M subs.
As a European exec, I first came across the Starz brand during my tenure at Orange / OCS. Their line up fed the 1st Pay TV window of OCS for years with shows like Spartacus, Party Down, Power, Black Sails and more. In markets where they will soon close, expect to see their teams back in full licensing mode.
Check them out 👉 Lionsgate+
🎬 Content recommendation: “Catastrophe” by Sharon Hogan
This week’s show is an oldie (well sort of) worth resurfacing for fans of the show “Bad Sisters” released on Apple TV+ last summer. Sharon Horgan is an Irish actress/writer/producer I truly admire. Streamers and broadcasters should (if they don’t already) fight for her.
It’s an hilarious series about a date night which turns into a lifetime commitment full of obstacles. The pair of actors (who I didn’t know at the time) are so spot on as adults who never really left adolescence and struggle coping with love, family and work.
Depending on your market, you may find it with your local broadcaster or Prime (who bought it early on and put a “Prime Original” stamp on it).
Enjoy 👉 Catastrophe
That’s it folks. Enjoy your weekend and see you next Friday for another edition of Streaming Made Easy!
By night, I write Streaming Made Easy and post each working day on Linkedin.
By day, I run The Local Act, a streaming video consultancy.
Whenever you’re ready, there are 3 ways I can help you:
NEW - Founders’ Hours: One-hour consultations for founders in need of quick answers to their most pressing business questions. Starting March 10th, I will block my calendar every Friday for these consultations. Book your slot here
If you’re looking to start a FAST Channel business, I designed a Program called "How to get into FAST" where I fast-track the launch of your FAST Channel Business in 90 days. Book a call to discuss
Last but not least, work with me 1:1 to grow your streaming video business in Europe (market intelligence, go to market strategy, distribution expansion etc.).
It would be a major shift, indeed. Tbh our goal is to convince them to start FASTs channels in a low-profile territory asap