Image Credits - Business StandardNetflix has long been synonymous with original content, but a new report from Ampere Analysis suggests that the streamer’s best returns come from acquired studio films rather than its homegrown productions. The study, titled Unpacking Netflix’s Evolving Movie Strategy, highlights that licensed movies—particularly those that have enjoyed a robust theatrical release—deliver a significantly better cost-per-view ratio than Netflix originals or its vast library of acquired and original series.
The numbers are striking. According to Ampere, Netflix spent $1.07 billion on acquiring movies in the first half of last year, yielding an impressive 9.23 billion total views. By contrast, its original movie budget for the same period was significantly lower at $0.51 billion, drawing just 3.98 billion views. This translates to a cost-per-view of approximately $0.12 for licensed films versus $0.13 for Netflix originals—showing a slight advantage for licensed content.
While the margin may seem narrow, the impact is substantial when considering that Netflix’s original movies require hefty production budgets, extensive marketing efforts, and long development cycles. Meanwhile, studio films already come with built-in brand recognition, audience anticipation, and box office momentum, making them an easier sell for subscribers.
The efficiency gap between films and TV
The report also highlights a crucial insight into Netflix’s content efficiency: films, whether licensed or original, provide a far better return on investment compared to series. Licensed TV shows, for example, cost the platform an average of $0.55 per view, while Netflix’s original series are even pricier, with a cost-per-view of $0.68. Given that series require multiple seasons and continuous production investment, the financial efficiency of stand-alone films becomes even more apparent.
Why studio films make sense for Netflix
Netflix’s content strategy has evolved over the years, with major investments in original blockbusters like Red Notice and The Gray Man. However, this report underscores that while such movies may generate buzz, they don’t necessarily provide the best financial return.
In contrast, Netflix’s lucrative pay-one deals with major studios like Sony and NBCUniversal allow the platform to capitalize on films that have already proven their worth at the box office. By acquiring titles that have already resonated with audiences, Netflix avoids the risk of costly misfires and maximizes viewership efficiency.
The future of Netflix’s film strategy
As Netflix continues to navigate an increasingly competitive streaming landscape, the findings from Ampere’s report suggest that a balanced approach—leveraging both original productions and strategic acquisitions—will be key to sustaining profitability. While Netflix originals remain essential for brand differentiation, the undeniable cost efficiency of studio films ensures that they will remain a vital part of the platform’s content mix.
With subscriber retention and cost management more critical than ever, Netflix’s best bet might just be doubling down on what already works—acquiring proven hits rather than gambling on expensive originals.
