Netflix Remains Dependent on Licensed Shows Like ‘Breaking Bad’ | Charts
Despite Netflix’s considerable investment in creating original content, a majority of its most popular shows remain licensed from outside networks.
Between the last quarter of 2021 and the first quarter of 2023, original shows’ share of Netflix’s catalog grew from 52% to 61%. During this same period, the demand share of original content among the top 25 shows on the platform decreased to 24.9% in the first quarter of 2023, the lowest it has been in recent years, according to Parrot Analytics’ data, which takes into account consumer research, streaming, downloads and social media, among other engagement.
Of the top 25 most popular shows on the platform in the first quarter of 2023, only seven were Netflix originals. For context, 23 of the top 25 series available on HBO Max were HBO or Max originals. Several of Netflix’s popular originals on that list are not owned in-house by the streamer or didn’t start on Netflix, like “You,” “Cobra Kai,” and “Lucifer,” and could eventually revert back to the original owner, leaving a hole in Netflix’s library.
When looking at the overall demand for Netflix’s licensed content, which made up about half of the total demand for the catalog in the first quarter of 2023, shows that premiered on The CW had the highest share at 11.4%. This network provides some key shows from the DC Universe to Netflix, like “The Flash” (the second most in-demand show on Netflix in that quarter), “DC’s Legends of Tomorrow” and “Arrow.” Nickelodeon, which accounted for the second largest share, underscores the importance of animation to the Netflix catalog. Shows like “Avatar: The Last Airbender” and “Rise of the Teenage Mutant Ninja Turtles” still feature among the 25 most in-demand shows on the catalog.
Although AMC licensed just a handful of original shows to Netflix, these series have a huge impact and collectively account for 6.8% of the demand for licensed content on the service. That’s mainly due to the popularity of titles like “The Walking Dead,” “Breaking Bad,” and “Better Call Saul,” all of which were among the top 10 most in-demand shows on Netflix in the period Parrot looked at.
Netflix’s reliance on licensed content may pose a challenge for the streamer’s efforts to increase free cash flow in the medium and long term. For example, if Sony, the owner of the licensing rights to the two shows from the “Breaking Bad” franchise, determines that these shows are keeping high-churn-risk subscribers on Netflix, then it might seek to negotiate significantly higher licensing fees.
Daniel Quinaud is a senior data analyst at Parrot Analytics, a WrapPRO partner. For more from Parrot Analytics, visit the Data and Analysis Hub.
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