Why Netflix Should Focus on Original Content Over Licensed Shows

Netflix has reached a point of cultural ubiquity where viewers tune into the service itself in the same way they would’ve flipped through cable channels in the pre-streaming era. Although it produces more original projects than any other studio or distributor, Netflix has also grown to rely on licensed content as a primary means of drawing in subscribers. The streamer previously lost titles like Friends and The Office when they moved to other services, but recently scored a deal to license content from Paramount+, including popular shows like SEAL Team and Mayor of Kingstown. This isn’t the first time that Netflix has struck a similar deal with a rival streamer; the service has also carried shows that were previously exclusive to AMC+, Showtime, and HBO Max.

There is certainly the possibility that Netflix licensing shows can boost the popularity of titles that need more engagement. Breaking Bad rather famously started attracting more viewers on AMC after older seasons became available on Netflix, and Suits became such a streaming phenomenon that it started a cultural reassessment of the show and led to a spin-off series on network TV. However, the incremental boosts in viewership from licensed content don’t cultivate the type of long-term loyalty that Netflix needs. Should Netflix want to remain at the top of the streaming wars, its focus should be on cultivating and supporting original programming.

Netflix's Biggest Streaming Wins Have Come From Its Original Shows

The most popular successes among streaming services are shows with a vast backlog of episodes that offer viewers a “comfort watch,” allowing them to be revisited frequently. Netflix’s biggest streaming wins have come from its highly expensive blockbuster shows like Stranger Things and Wednesday, but neither has the length just yet to become truly beneficial to the library. While the excitement surrounding these shows may help Netflix attract viewers in the interim, lengthy delays in the release of new seasons don’t give subscribers a reason to stick around. Ultimately, Stranger Things and Wednesday are two outliers, as there are far more expensive shows that Netflix decided not to renew.

Having shows that can withstand multiple binge-watches is important, but Netflix also benefits from high-quality original content that sparks cultural conversation. A licensed show, however popular it may be, will always be on its second wave of release and will be less valuable than an original series that sparks discourse and discussion. Last year, Adolescence outperformed many of Netflix’s more heavily marketed shows because it spoke to important themes about today’s society and initiated real conversations about patriarchy and toxic internet discourse.

Even if Adolescence is a limited event series, Netflix viewers may see it as a sign that the service is delivering unmissable original content that requires a long-term subscription. It’s why buzzy original shows like The Beast in Me and Untamed are just as important as series with significant, established fandoms. Licensed shows don’t have the same staying power; the Suits hype was a momentary event that eventually died off, and Breaking Bad has less value to Netflix now that it is also available on AMC’s own streaming service.

Netflix Needs To Keep Building Its Own Original Library of TV Shows

Netflix also can’t solely rely on the rare breakout phenomenon like Stranger Things or Wednesday, because completed shows with satisfying endings are more valuable. Viewers are unlikely to start shows that were cancelled and thus won’t ever conclude in a proper way, and Netflix has axed original series at an alarming rate; even shows like Shadow and Bone and Warrior Nun, both of which had passionate fanbases, weren’t safe from cancellation. As much as Netflix wants to try out as many experiments as possible to see which will stick, it’s unfair to expect creators to deliver an immediate hit in order to earn a renewal.

More than a few all-time great shows didn’t find their footing until their second season, but Netflix’s current model doesn't allow for that kind of evolution. There's value in sticking with shows that take chances and have room to grow in viewership over time; series like Ozark and The Crown were both popular when they were first being released, but they have even more value to Netflix because they have an abundance of episodes and thus have become library titles.

Licenses for shows will eventually lapse, and viewers will grow frustrated if their favorite programming is only available for a select period of time. Netflix needs to cultivate a brand that's synonymous with quality, but providing shows that originated on other platforms only suggests that Netflix doesn’t have an identity of its own. The resources Netflix has at its disposal are incomparable, but it isn’t well-served by creating dozens of series that will eventually be hidden within the library after they’ve been cancelled. This isn’t to say that briefly streaming Lost or How I Met Your Mother won’t provide a temporary boost for Netflix or an advantage to invest in more original partnerships, but relying on shows it didn't produce to keep subscribers from leaving isn't a sustainable strategy in the long run.