How Netflix Can Benefit From Interactive Shows

by Trefis Team
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Netflix (NASDAQ:NFLX) recently launched its first interactive show “Puss In Book,” where its viewers can choose what happens next in the story. This show – which is part of Netflix’s kids content – will engage viewers as they make decisions on how the story moves forward. The company’s research for interactive shows saw positive feedback, but the company hopes to collect more feedback via this pilot launch. As many children prefer to be in “control” of their characters, Netflix believes that an interactive show will keep them engaged. Further, viewers might watch the show multiple times, making different choices each time to reveal the multiple story lines. As content remains the key differentiating factor in the highly competitive streaming media segment, engaging interactive programs could help Netflix better engage viewers, which can improve loyalty.

Engaging And Entertaining Kids, Retaining Family Subscribers

Netflix’s content for kids is immensely popular, and 50% of its accounts globally watch children’s programming. This indicates that family subscriptions form a significant part of Netflix’s audience. The company’s initial research regarding interactive programming got positive feedback, but it still needs to test the concept with an actual series to gather detailed information on user responses. Further, writing and producing an interactive title is more expensive compared to a regular episode. The company created 40 minutes of content for the 20 minute show, indicating that the content costs for such shows could be substantially higher. However, as many parents would likely prefer for their kids to watch an interactive show involving learning and decision making rather than passive viewing, this initiative could lead to higher viewership. Further, by tracking data on the storyline options chosen by the viewers, Netflix can also identify which storylines are more popular and refine its content accordingly.

As the streaming industry gets increasingly competitive, better content will continue to be a key differentiator and driver of subscriber growth. Therefore, experimenting with engaging content is a smart move for Netflix going forward.

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