Every indie filmmaker seems to have the same goal: Sell a film to Netflix.
But few understand the criteria Netflix uses to pick their films.
Most assume that Netflix acquires films just the same as any other traditional studio like Warner Bros. or Universal.
In reality though, Netflix operates with an entirely different business model.
For most studios, each individual film is its own product. Those products may have additional derivatives (like actions figures or lunch boxes), but each and every film lives on its own island.
Netflix doesn’t see films as individual entities. Instead, Netflix is focused on their one dominant product: Their library.
What Netflix wants is more paying subscribers, plain and simple. That is clearly their #1 business objective, as it’s their dominant revenue stream.
So when picking any film to add to their library, they must first ask:
Will the cost of producing this film generate at least as much revenue in new subscription fees?
Sure, the executives over at Netflix are also looking for quality entertainment, high production value, great stories, and a slew of other criteria. But those variables alone don’t guarantee new subscribers. Only one thing really does:
Audience size.
This week I saw a lot of discussion online about Netflix’s new movie He’s All That, a remake of the 90s classic She’s All That.
There was talk about how the film’s lead (Addison Rae) was a poor casting choice.
“Why wouldn’t Hollywood simply cast a better actor when there are so many out there?” is a question I heard repeatedly.
Well here’s one reason – Addison Rae has 83 million followers on TikTok.
Like it or not, the Netflix’s of the world place a premium on audience size, and for good reason. If the movie isn’t great by traditional standards, it will still draw in a crowd.
If just 1% of Rae’s 83 million followers subscribe to Netflix to watch the film, that’s over $11 million dollars in monthly revenue at the $13.99 monthly subscription rate.
And many of these users will stay signed up over the long term.
Netflix knows that their users sign up for one thing, and stay for something else entirely. That seems to be the core of their model.
Despite flashy titles like The Irishman or The Queen’s Gambit getting lots of press attention, the majority of Netflix content being streamed are old TV re-runs, true crime stories, and vintage titles from decades past.
In that respect, Netflix content appears to fall into two buckets:
1. New content to drive up subscriptions
2. Old/cheap content to keep subscribers paying their monthly fee
This is important to recognize if you’re a filmmaker with your sights set on Netflix (or any other streamer). If nothing else, it underscores the power that audience size holds in relation to film sales, and that the quality of your film alone is far from the only metric being considered.
As the industry continues to pivot toward streaming, I can only imagine that this trend will drive acquisitions at the legacy studios as well. In many cases, it already is.
For filmmakers who want an edge in this new paradigm, a focus on audience size is mandatory.
Whether you build an audience for yourself as a filmmaker, hire actors with existing followings, or develop IP that has proven market interest – you can give yourself the upper hand.
None of this is a replacement for a great film, which should go without saying. At the very least though, it can give your film the fighting chance it deserves.
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Noam Kroll is a narrative filmmaker & creative entrepreneur based in Los Angeles. He’s currently in development for his third feature film, and is the owner of Creative Rebellion, a production company that services brands like Google, NBC / Universal, and Warner Bros Technology, among many others. Over the past decade Noam’s personal filmmaking blog (noamkroll.com) has grown into a burgeoning resource for DIY creatives, spawning a popular podcast (Show, Don’t Tell) and newsletter (micro-budget weekly), which collectively reach millions of filmmakers each year.
