France’s TF1 said that it achieved its 18-month audience growth target from the Netflix partnership in just 3 weeks.
I think this lays out a blueprint for what Netflix’s next phase of growth looks like. It will sign up legacy TV channels on its app at minimal cost, expand its content slate, increase engagement and generate high margin ad dollars.
This partnership was a test case for Netflix. These are the kind of numbers that’ll pull in more partnerships. Today, Netflix is an aggregator of movies and shows produced by other studios and production companies. Now, it looks like they may begin aggregating TV channels, which have a fire hose of content: scripted, unscripted and live.
Getting an aggregator status in any industry should help it command a premium PE multiple again.
