Keeping diversity at the core, we have been able to appeal to Indian audiences: Ted Sarandos

At a fireside chat hosted by Netflix in Mumbai on 18 February, Ted Sarandos, co-CEO, Netflix, and Sanjay Leela Bhansali, filmmaker, director, screenwriter, and music composer, discussed how the OTT platform aims to tap into niche audience markets, views on data, and the future of OTT platforms.

The conversation was moderated by Mini Mathur, TV host, actor and model. 

Sarandos kicked off the session by sharing why he has taken a gamble on storytelling. He expressed, “To have a profitable streaming service, an OTT platform needs to cater to an array of audience cohorts so that there is a vast library of content. The content should be captivating enough to tick all the boxes and all consumer segments.”

Bhansali believed that to appeal to an OTT audience, one does not need to impress a studio head or distributor, instead, the key is to tap into the emotions of audiences to garner more eyeballs. 

Sarandos added, “The focal point of a successful OTT business is understanding the audience. In this business, sometimes it is easy to lose track of why we are doing this and for who. The business intent is clear. The goal is to appeal to the audience. OTT audiences want two things: escapism and relatability. The objective is to build solutions that stem from these two needs of an OTT consumer. The entire business model is built on pleasing the audience at Netflix.”

Netflix’s business intent

Sarandos stated that meeting the audience where they are is a challenge and an opportunity for an entertainment firm like Netflix. 

“Through this business model of keeping audiences at the core, we have been able to roll out 100 original shows. Within this content slate, there has been diversity entrenched at the core of these projects so that we appeal to the masses in India”, he added. 

Sarandos labelled love for one’s work as the main benefactor to thrive in the entertainment industry. He said, “The hours are long in this industry. Hence, if there is love for one’s work, time passes by. Investing in creative ideas and big-budget productions is another area OTT players need to invest in.”

Is data the holy grail for Netflix?

With data defined as the new oil, Sarandos shared how he viewed data for Netflix. 

"We need to approach data as a tool and not put it on a pedestal. There is a certain amount of magic in storytelling that data cannot define or determine. Data is good for telling us about markets that are not doing well or content that has less viewership and needs to be cancelled. On the contrary, it isn't good for untapped markets as it puts restrictions on storytelling," he explained.

The future of OTT

One effect of the pandemic is that a large number of viewers are watching a big launch movie for the first time at home. Hence, Sarandos advised that OTT platforms need to be more compelling in their storytelling. 

“The audience is in control. They aren’t in a movie theatre anymore, hence if the content is not compelling they will shift to a different OTT platform or switch it off. In the media industry, adaptiveness has always been key. OTT is no different. We need to meet the audiences where they are no matter what format or screen they are watching to be more profitable ”, he commented. 

Sarandos signed off with a comment on influencer marketing and how that affects OTT businesses. “There is a misconception that young audiences have short attention spans. If the content is sticky to the audience they will spend over eight hours on an OTT platform and binge-watch a show. However, we are competing with user-generated content and influencers. Audiences that used to spend time watching news and TV are now spending over two hours on social media watching user-generated content”, he concluded.