Netflix gets Oscar gold, strong incentive to auteurs who are yet to embrace SVOD
The Oscars are a permanent talking point in regards to streaming video on demand (SVOD) platforms such as market-leader Netflix. Some investors might wonder why. The answer is this: while wins at the Oscars have some sway with audiences, and no doubt carry prestige in-and-of themselves, the main purpose behind winning them is to convince the best writers, actors, and directors to work with you. Or at least, that’s the case if you’re a company like Netflix, Amazon, or Hulu. And at the most recent Academy Awards, Netflix delivered its best performance yet.
Netflix’s share price has appreciated by 42% so far, year to date
Source: Yahoo Finance
Netflix and its peers have deep pockets and give creators lots of freedom. But for the best of the best, legacy is often an overriding concern. The recognition that comes from prestigious awards – paramount amongst them, the Oscars – is the biggest asset available when it comes to convincing these artists that you’re worth working with.
This year, Netflix broke new ground with its long-touted Oscar winner Roma. The black and white Spanish family drama won best foreign language film, and its director, Alfonso Cuaron, took home the awards for directing and cinematography. Overall, the company had an impressive 15 nominations – although the only other winner on its books was short documentary Period. End of Sentence. The coveted best picture Oscar, however, is yet to be won by an SVOD platform.
Despite missing out on best picture, this year’s Oscars were a big win for Netflix. Roma took home three Oscars and was nominated for ten (tying with best picture winner The Favourite for most nominations), and the company not only won in the short documentary category, but had other nominations too!
If Netflix can continue to earn plaudits for its original films (its TV shows are already highly respected), then it looks like the company will have no difficulties bringing the best talent onto its platform. And, as everyone in the industry knows, get the best talent, and you have the best content. Get the best content and the audience, eventually, will follow.
Dominion holds Netflix in its Global Trends Ecommerce Fund.
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