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“Suits” was the most streamed title in 2023, a sign that licensed content is here to stay.
According to third party rating service nielsenThe USA Network series was watched for nearly 58 billion minutes last year after spending 12 consecutive weeks atop the Nielsen ratings charts.
Netflix (NFLX) acquired the drama in July. It is also available to stream on Comcast’s Peacock (CMCSA).
The resurgence of licensed content appears to have come full circle in the streaming wars after companies spent billions to create original intellectual property in a bid to outperform competitors and attract subscribers.
While Netflix has certainly led that charge (the company recently revealed that 45% of all views on Netflix came from licensed titles from January to June 2023), it is actively shutting down licensing of its own content.
“Our large subscriber base and our recommendation system (knew how) to introduce ‘Suits’ to the people who would love it the most,” Netflix co-CEO Ted Sarandos said on a call with reporters late last year. “I don’t think that necessarily happens the other way around. I think we can add value when we license content. I’m not sure that’s reciprocal.”
Disney (DIS) has been one of the competitors that has adopted the change.
ABC’s “Grey’s Anatomy” has been a huge hit on Netflix, while Disney acquired international streaming rights to “Bluey,” the second most-watched acquired title, from BBC Studios in 2019.
However, similar to Netflix’s refusal to license its original series, Disney CEO Bob Iger said during the company’s latest earnings call that major brands like Disney, Pixar, Marvel and Star Wars are probably off limits as they offer “real competitive advantages.” “and are “differentiators” for the company.
But analysts have described that thinking as a double-edged sword, citing high debt loads and continued profitability challenges.
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