Netflix and Branding: How Original Content Contributes to Netflix’s Business Strategy and Brand Building

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University of Amsterdam

Faculty of Humanities

Television and Cross-Media Culture

Master Thesis

Netflix and Branding: How Original Content

Contributes to Netflix’s Business Strategy and Brand

Building

Nena Hertgers

Thesis supervisor: dhr. dr. M. W. Stewart Second reader: dhr. dr. S. M. Dasgupta

Word count: 17.139 26-06-2017

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Preface

I would like to thank my supervisor dr. Mark Stewart for his detailed notes and his patient supervision. I would also like to thank my second reader dr. Sudeep Dasgupta. My gratitude goes out to Suzanne, for proofreading my thesis and helping me with my English.

Abstract

This thesis examines the SVOD service Netflix and its branding strategies within the televisual environment, making a comparison with HBO. By focussing on the Netflix Original Content and the role of the original content within the business strategy of Netflix, the role of the audience preferences becomes apparent. Since it does not depend on mass audiences and income through advertisement, Netflix can provide more specialised content catering to niche audiences, thereby reinforcing its own brand and image of an SVOD company that caters to an individualised audience.

Keywords

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1. Introduction

In this thesis I would like to take a closer look at the branding strategies of Netflix in comparison to the branding strategies used by HBO. When looking at TV channels or streaming services, certain associations are made based on the type of programming they provide, but also by the type of brand they present themselves as, or by the reputation they have in the television world. What makes Netflix recognisable as a brand is that Netflix is a combination of stylistic choices. Netflix’ use of the certain television genres that they offer, makes their Original series recognisable by due to certain characteristics. I will argue that their branding strategy is an effective one, but very similar to the branding strategies used by HBO.

Netflix is one of the biggest SVOD (subscription video on demand) services with an estimated 98,75 million users at the moment (17-04-2017). In 2013 Netflix produced its first Netflix Original series House of Cards (2013-). House of Cards is an example of a branding strategy used by Netflix; it is a high production value series with the aim to be Quality TV; using well-known directors, actors etc. (Jenner, 263), for an interested niche audience. By producing these high quality series, Netflix positions itself within the TV field and gains high ratings (on rating sites like IMDb) and a lot of media coverage. Instead of marketing itself as a service, Netflix markets itself as a platform with exclusive high quality content, and gains familiarity from audience reviews and media attention. I argue that by taking away the pressure of the number of views/viewers any series receives; Netflix creates an environment where a wide variety of shows can be made available for niche audiences. By providing shows for niche audiences (maybe some known as cult-TV), Netflix is

reinforcing its brand and image. I will map Netflix’s business strategies and discuss how the company is branding itself into one of the most popular current SVOD services. I will make a comparative study with HBO as a cultural predecessor to Netflix (even though HBO is still a big player in the broadcasting field) and take into consideration the role of Netflix Original series within the business and branding strategies used by the company. In conducting this research, I use qualitative data and literature research, looking at both the

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business and marketing data. I will also utilise a deep conceptual analysis of these data based on several different academic frameworks. The reason that I want to incorporate HBO into the study is because the services provided by HBO are considered to be a significant advancement of the period described as TVIII (Jenner, 263) and can be seen as the predecessor of SVOD services like Netflix. A comparative analysis shows the converging and contrasting strategies used by these companies. My research demonstrates certain patterns in

Netflix’s branding strategies and their original shows alongside press releases, reviews, and (IMDb/Metacritic/newspaper) ratings, as well as the use of ‘cult’ status or the notion of ‘quality’ of certain TV shows or genres to create a recognisable Netflix brand.

2. Netflix Inc.

This chapter about Netflix as a company as well as about some of its traits as a company will help with the analysis of its business and branding strategies. I will be looking at the aspects of Netflix that will contribute to the analysis of the company. In order to be able to place Netflix in the context of SVOD

services/television content distributors, a brief history of the company will be discussed first. This chapter will give a more general overview of Netflix before discussing the aspects that are of importance to researching Netflix and its branding strategies in more depth in the following chapters.

2.1 A brief history of the company

In 1997 Reed Hastings and software executive Marc Randolph co-found Netflix to offer online movie rentals after which the website Netflix.com was launched in 1998 as a DVD rentals and sales site. The monthly subscription model was introduced shortly after, in 1999, and in 2000 a recommendation system was implemented (which would become the foundation for a search and discover system and rating system that is used today). The recommendation system collects data based on preferences by Netflix users to personalize and specify the viewing suggestions made by the site. The growth in Netflix members was

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quite impressive in the early years, reaching 600.000 subscribers in 2002. After the company launched on the stock market, these numbers increased even more rapidly, from 600.000 to 4,2 million in 3 years (2005).

The actual streaming services of Netflix were launched in 2007, initially only on computer. In 2009-2010 this was expanded to smart-TV, game consoles, tablets and smartphones. From 2010-2016 the Netflix services gradually became available in countries other than the U.S. (worldwide access), thereby dramatically raising the number of Netflix users. The exponential growth of the company made way for a next step in the business strategy: the creation of original content, which began in 2013 with the series House of Cards (2013-). Since then, Netflix has produced countless original titles in all types of

categories; drama series, comedy series, films, documentaries, comedy specials, and anime. The Netflix originals all share some significant features: high production value, a high level of artistic freedom for the makers, and an aim to fall in the category of ‘quality TV’1_{. Each of the features function as part of the} branding strategy of the company (Media.Netflix.com).

2.2 Netflix’s business model

As the story of how Reed Hastings came up with the idea for Netflix suggests, the first aspect of Netflix’s business model is accessibility, i.e. being able to watch content whenever and where the user wants without limitations. A second crucial part of the strategy is affordability: a lot of content for a low price. A third aspect, which was added later on but is now a main feature of Netflix, is the provision of original content (business2community.com). Arguably, a fourth aspect that can be discerned is the technological structure and the usability of the VOD (video on demand) platform. As Netflix has

developed a number of tools for, and manners of, data gathering to improve the usability of the platform, it was made more effective in personalising it to the users’ preferences. While these four aspects are all part of the Netflix branding

1 Definition by McCabe and Akass in Quality TV, I will give an extensive definition in chapter 3.6.

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strategy, creating a strong and recognisable brand identity can in itself also be seen as part of the overall strategy.

2.2.1 Accessibility

Making Netflix an online-based company in 1998 was a significant move when comparing it to other content providers like the DVD and VHS rental company Blockbuster. After online video streaming became available for consumers, an increasing number of services were being provided online, so the accessibility of Netflix gave the user more agency in when and how the content was

watched. Technological changes and developments made it so that today we can access the Internet almost anywhere and at any given time via mobile devices, smartphones, tablets etc. As traditional broadcast television is in its essence bound to the TV set, usually at home, and has a fixed programming schedule, it provides the user with little agency in what, when, and where to watch the content. Technological developments like the DVD, DVR and such made it so some interference with the televisual flow is possible, but still in a more time consuming (DVR) and expensive (DVD) manner than the VOD services provide. Put another way:

Viewers face more content choices, more options in how and when to view programs, and more alternatives for paying for their programming. (Lotz 2007, 5)

When using an SVOD service the content choices are entirely up to the user (limited only by the extent of the offered content on the SVOD platform) and can be accessed and paused at any chosen moment completely independently from a broadcasting schedule. Furthermore, as the quote from Lotz describes, the way users/viewers pay for their content/programming is also part of the increase in options. This will be described in more detail in the following section.

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2.2.2 Original content

In the early years of Netflix no original content was provided, but instead content was bought from production companies and TV channels that did not have an online streaming service available for their content. The announcement of the production of the first Netflix original series House of Cards caused a lot of media attention and publicity for Netflix. The first season of House of Cards was very well received amongst both critics and regular viewers (7.6 Metacritic score, 9.0 IMDb score). By being the only distributor of original productions, the Netflix originals can be seen as part of the Netflix brand. The original content sets Netflix apart from other SVOD services and thus reflects on Netflix’s brand identity and their targeted audience. Apart from being the only distributor of the original content, aiming for niche audiences is a well thought out decision on Netflix’s behalf, as this becomes a more and more common type of audience for TV content:

The U.S. television audience now can rarely be categorized as a mass audience; instead, it is more accurately understood as a collection of niche audiences. (Lotz 2007, 5)

As a political drama with a complex plot, House of Cards can be seen as a series that wouldn’t typically attract a mass audience, but is instead focused on a smaller niche audience. By having chosen to produce a series in a genre like House of Cards, Netflix makes a statement about the kind of content they want to provide, namely that niche audiences are a targeted audience for Netflix.

Netflix keeps their budgets secret but the estimated budget for the first two seasons was $100 million (theatlantic.com). The large budget combined with casting well-known actors and directors, Netflix aimed to profile itself as a creator of Quality TV. The SVOD platform functions well in combination with niche audiences and by providing exclusive original content in many

subcategories of TV and film Netflix makes itself a market leader in this category. A more detailed research on Netflix’s original content will be provided in chapter three.

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2.3 Number of subscriptions and growth

As mentioned in the introduction, in 2017 the number of Netflix subscribers worldwide is 98,75 million (17-04-2017). Many of the charts found online only show the statistics until the 3rd_{or 4rd quarter of 2015, but this will suffice to} demonstrate the exponential growth from the period that the first Netflix original show was produced and the period that Netflix was made available worldwide. The number of international subscribers makes Netflix the number one SVOD service on the worldwide market. Additionally, the North American market grows at a steady rate as can be seen in figure 1.

Figure 1 (Statista.com)

3. Netflix originals

After successfully producing the fourth season of Arrested Development (2003-, seasons 1-3 were produced by FOX) Netflix started their original programming with the quality drama series House of Cards (2013-). Since the production of House of Cards Netflix has produced hundreds of originals that are available

worldwide2_{. In this chapter I am going to discuss two key aspects to Netflix}

2 The available content depends on the region or country from which the consumer is streaming Netflix.

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originals as part of the Netflix branding strategy, namely the notion of ‘quality TV’ and the use of cult TV as part of the Netflix brand. By producing content Netflix uses the content to create a Netflix identity as a company, but also an identity for the targeted consumers themselves.

Netflix chose to produce television content by creating its original content which makes it part of the television matrix. Jenner argues that even though Netflix is part of the television matrix, it takes televisual branding in a different direction by being an online platform (270). Therefore, Netflix is independent from branding strategies or infrastructures used by traditional television:

Netflix may be viewed as part of a television matrix, but, apart from offering serialised content, it signals a further move away from what is still understood as television. A key aspect here is Netflix’s independence from branding infrastructures that link television with online media. (270)

Traditional television has a different business model than an SVOD service, and the difference in generating revenue also affects the strategies to attract

viewers. Traditional television has to focus on numbers of viewers for a

particular show, and is thus forced to make content that is appealing to masses. But for Netflix, the enthusiasm of consumers of the platform as a whole product is of more importance to keep the monthly subscribers. Netflix users create their own viewing experience, and their own preferences for consuming content can be applied to the platform. This can make the consumer feel like they have more control over their content consumption (Lotz, 245). The increased feeling of control for the viewer/user is an important part for the Netflix brand as it stimulates individuality and choice by the technology and content it offers.

A consequence of the business and branding strategy of Netflix to let the consumer devise its own media experience is that it is creating small niche audiences for the content. Jenner writes:

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Netflix builds its own brand, a premium online channel independent from more ‘traditional’ forms of channel branding in network and cable

television with even smaller ‘niche’ audiences with the autonomy to build their own schedule. (Jenner, 270)

What Jenner refers to as ‘the autonomy to build their own schedule’, is an important part of the Netflix experience as consumers. As Netflix builds its own identity and brand through the content that they offer, the Netflix user can build his or her own identity as a content consumer by choosing their own content and consuming schedule. Having the choice to decide what to watch, when to watch it, and how to watch it contributes to a sense of expressing one’s identity by having made all these choices along the way to consuming content.

Jenner also refers to Netflix as a premium online channel, which is an interesting viewpoint because ‘channel’ suggests a television channel in the traditional sense. It illustrates how diverse television content can be provided in the Digital Age: Netflix is an SVOD or an online content provider with a monthly subscription fee, but is still considered as a channel that is part of the television landscape. This signals a change in the perception of television as a medium.

3.1 Quality TV

The term quality TV is often used to describe shows and series with a high production value and/or complex well thought out storyline or as a way to promote a new show. But as McCabe and Akass argue in their book Quality TV: Contemporary American Television and Beyond ‘almost any discussion involving quality cannot escape issues of value judgement and personal taste.’ (2). The concept of quality or high quality is inextricably linked to subjective judgement depending on the hegemonic discourses of the person (or people) that are asked to define it. But there are still some common conceptions about what aspects a television programme needs to possess to be called quality television. In this section I will discuss the definitions of quality TV that I will maintain throughout this thesis, with the understanding that there is no definitive

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answer to the question ‘What is quality TV?’, I will expound upon those aspects of quality TV that is of added value to my argument. Starting with the content, storyline and themes of a programme, McCabe and Akass argue that quality television should be of some educational value or should in some way provoke thought in the viewer. These goals can almost automatically be associated with politics or some sort of political involvement in the programme’s themes. The following quote is part of the Introduction chapter of the book Quality TV:

If we are to understand American Quality TV as a genre, the most useful short definition of it came from (…) Ashley [Sayeau]: ‘politically engaged, often independent TV that aims to enlighten, as well as to entertain’. (McCabe, Akass, 4)

In other words, quality TV is connected to intellect, and content that provides more than just entertainment. It appears that Netflix used this formula in creating its first original show House of Cards, which is a political drama. By producing a series with a focus on politics, and criticism on American politics in particular, Netflix aimed to provide a series that can be categorised as quality TV as part of its branding strategy. Another aspect is that politics is often associated with high culture, which may lead to the association between a TV show and the notion of quality. However, it is certainly not the only

characteristic that defines whether a television programme can be categorized as quality TV, nor is it impossible for a programme to be defined as quality TV when it does not have an explicit political engagement. The aim to enlighten as well as to entertain should be combined to make a programme both interesting on an intellectual level as well as entertaining. I agree with the statement from Ashley Sayeau, and I would argue that for a programme to be entertaining, some levels of visually pleasing aesthetics are of importance. But in this aspect there is also the risk of subjective judgement and taste. McCabe and Akass make the distinction between quality television and the value judgement of what is good television. An important part of this argument is that quality television can still be perceived as good or bad (or any other judgement in-between) television, so that it is not exclusively experienced as good television

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even though a viewer is able to see that it is quality television. Furthermore, there is also the argument that quality television should be good for the viewer, for example by being educational or thought provoking. Hence, there is a distinction in (good) effect and (good) judgement, or if the programme is being experienced as good.

(…) We can make a distinction between categorising something

‘generically’ as quality television, and offering a considered evaluation that the same programme is ‘good’. Quality television may be perceived as being good for its viewers – morally or educationally edifying – but it may still be experienced as worthy, dull, conventional or pretentious. (McCabe, Akass, 21)

What McCabe and Akass refer to as the ‘morally or educationally edifying’ aspect of quality TV is connected to the argument that quality programmes should be ‘politically engaged’ from the earlier quote by Sayeau. But the

intention of the makers of a show to make something ‘morally or educationally edifying’ does not automatically make a programme good. The distinction between quality and good television content is of importance to understand the phenomenon of Netflix because of the variety in themes and formats of their originals. House of Cards is almost a classic example of a show that could be categorised as quality television, which is an interesting move from Netflix in the process of brand building. But for the other originals Netflix seems to aim for ‘good’ television. Series like Orange is the New Black (2013-), Unbreakable Kimmy Schmidt (2015-), and 13 Reasons Why (2017) are examples of series with contemporary themes that have a high entertainment value and it could be argued that they belong in a different category than House of Cards. I would like to argue that these series could be categorized as ‘good’ television rather than ‘quality’ television.

The assessment of a programme as good television (…) is more aptly defined by the audience’s experience of it. Good television is rich, riveting,

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moving, provocative and frequently contemporary (in some sense); it is relevant and valued by us. (McCabe, Akass, 21)

Many of the later Netflix original productions can be categorised as

contemporary, I will not discuss the narratives or the content of some of the shows. But I would like to use this argument to demonstrate the importance of the choice for the first Netflix original production, while being aware of the difference between quality TV and good TV without simply categorising all Netflix originals as quality TV. With House of Cards being the first Netflix original series, Netflix shows that they are able to produce quality television, which is an important part of Netflix’ brand building and identity construction. After establishing that they are indeed able to create a series that is of high quality (high production value, politically engaged etc.) Netflix has more freedom to produce different types of original content based on data and viewer preferences. With Netflix being an SVOD service, it makes it important to corroborate their position and validation in the television landscape if they want to be taken seriously as a quality content producer.

If a programme is regarded as being quality television, viewers may feel more compelled to give it a chance (…) (McCabe, Akass, 21)

So, as McCabe and Akass argue, an audience is likelier to watch a show when it falls into the category of quality TV, and Netflix’ strategy aims for something similar by taking this idea a step further. By starting the Netflix original productions with a high quality series, I argue that the aim is that viewers are more likely to give Netflix as a platform, brand, and distributor a chance. With ‘quality TV producer’ as a part of the Netflix brand, the company places itself in the television landscape in a preferred way. House of Cards was Netflix’

showpiece, and also an affirmation of their capabilities as a worthy competitor in the television landscape, through the use of the notion of quality television as part of their brand identity.

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3.2 Cult TV

It is fair to ask what can be understood as cult TV? And in what way is Netflix using the term to reinforce its brand? Like quality TV, cult TV is a term that does not have one clear definition. In this paragraph I will discuss some of the aspects of cult TV that are relevant to Netflix originals and also why cult TV may be of importance to Netflix’ branding strategy. Cult TV is a genre of television that is commonly enjoyed by a small group of devoted fans, or a specialized fandom of a television show/series. Television networks base their content on ratings (number of viewers) because their income is generated out of commercials and ads. As such, the shows that are not a commercial success are often discontinued. For some of such discontinued shows small but loyal fan bases arise. Fans communicate for example online, discussing the shows amongst each other or even writing fan fiction. As such, these shows have their own cults of appreciative fans. Stacey Abbott relates the concept ‘transgressive television’ to cult TV in her book The Cult TV Book. This concept is of

importance when defining cult TV because it can be one of the reasons why a certain television show is discontinued by a network, but it may also be part of why a cult fandom arises from a show. Abbott writes:

The notion of ‘transgressive television’ has an inextricable association with ‘cult television’, where spaces of camp and resistance tend to overlap within a playful terrain of desire, devotion, and intertext. Fans are known to be ‘cult’ once they truly admit to loving a program, just as the program itself gains ‘cult status’ only once it has either (1) been cancelled,

forgotten, and then resurrected by fan intensity or (2) debuted riskily as something that must or ought to be cancelled within a competitive

broadcasting market, only to be surprisingly taken up, authenticated, and loved by an unexpected community of fans and critics. (Abbott, 78)

The term transgressive television implies that it is not likely content that is successful or appreciated by mass audiences. Instead, it is content that may challenge morals, and pushes boundaries of social acceptability and therefore

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requires a certain audience. Audiences that do appreciate transgressive television are niche audiences, who may or may not become a fandom of a certain show that will then gain it its cult status. Whether Netflix’ originals can actually be categorized as transgressive television is debatable, but Netflix is certainly not avoiding certain themes such as sexuality, mental illness, drugs, violence or complicated inter-human relationships. When looking at for

example Unbreakable Kimmy Schmidt, a comedy show about a woman that was kidnapped and forced into a cult as a teen and is now discovering the ‘real world’ for the first time in New York city, Netflix uses a traumatic event as a base for a comedy. Another example is 13 Reasons Why, a drama series about a high school girl who commits suicide and leaves tapes for the people around her to explain why she did it. Here, Netflix uses mental illness/depression as a premise for a series, which may be less uncommon, but was the cause for a lot of discussion about the responsibility of TV producers/distributors in handling the portrayal of sensitive subject matters. These two examples demonstrate that Netflix is willing to take on certain deviant themes in its Originals, but for a show to fall into the category of ‘cult TV’ a certain following or fandom is required. A clear example for a Netflix original show with an active fandom is the series Stranger Things (2016-). Stranger Things is a science fiction series set in 1980’s small-town America about a group of young teens who encounter mysterious ‘alien’ life. Fans of the show (unexpectedly) started creating a following around one character ‘Barb’, a girl that only has a few scenes in the first season before being abducted by the mysterious creatures.

To say that Barb has become a cult icon despite her limited screen time is a major understatement. The character (…) has

inspired murals, GIFs, listicles, and odes to her fashion-forward style, awesome powers of friendship, and overall greatness. This is despite the fact that (…) we know almost nothing about her at all. (Salon.com)

Like the quote from Salon.com highlights, there are countless sites about the character Barb, praising the character for several of her characteristics. This

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example shows that creating a TV show with cult like aspects (or a ‘cult formula’ if you will), e.g. a retro 80’s vibe and a science fiction/mystery genre, actually does have a chance to become cult TV. This is an interesting choice for

Netflix, but also a calculated one if we take into considerationtheir aim for

niche audiences as part of their branding strategy:

In a multichannel environment, success is achieved through specialist and not generalist program content. (Gwenllian-Jones and Pearson, 13)

Netflix is part of not only a multichannel environment, but also of a multiplatform environment. Because Netflix is able to provide content for smaller niche audiences without having to pay attention to ratings due to the monthly description business model, they are able to create specialist content. Their original shows possess aspects that can be categorised as cult TV such as quirky characters in main roles, themes or shows that cater to minorities, or even a continuation of a cancelled show from another channel (e.g. Arrested Development). Because Netflix users have the option to create their own viewing environment and content is not rated on the number of viewers but rather on the enjoyment of the viewers, niche-audiencing enables the platform to create specialised content. Abbott writes:

(…) Part of the pleasures of cult TV is the shared recognition among fans that their show is doing something unique, transgressive, and innovative. (Abbott, 99)

Offering specialised or niche content also adds to the identity construction of Netflix as a brand; presenting many options gives the user the feeling of being able to create their own content environment that is adapted to their identity. However, there are also some aspects that are considered part of the definition of cult TV that do not apply to Netflix original content. One such an aspect is the idea of a show that is not being continued due to lack of viewers, which gives a cult show its charm when it is revived by a loyal fandom. I will argue that a

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similar process that is happening to cult TV is also happening to the process that will be described in chapter four as ‘high pop’, which is essentially high culture that is adapted to be consumed by the masses. What Netflix creates in the viewer’s mind is the perception of consuming cult TV when watching some of its original content, without the background idea of cult TV having to be discontinued and brought back to life by a fandom, as is for example the case for such shows as Unbreakable Kimmy Schmidt, 13 Reasons Why, Stranger Things, Bojack Horseman (2014-), and Chewing Gum (2015-). Netflix takes some of the aspects that are considered part of cult TV, and applies that to their original shows to create a feeling of cult TV while taking away the pressure of ratings (number of viewers), thus creating a cult TV friendly environment that is catering to niche audiences.

3.3 Production value, financing, and ratings

When it comes to the financing of Netflix originals it is very difficult to find data. News articles suggest that the first two seasons of House of Cards had a budget of around 100 million US dollars combined (theatlantic.com). When looking at the production values of the originals, the visual and sound quality is always of a certain high standard comparable to for example HBO’s original productions.

Production values: A measure of the visual and sound quality of a film. Low-budget films tend to have lower production values because they lack the resources to devote to expensive pre- and post- production. (Pramaggiore, Wallis, 436)

The production values of Netflix originals are of importance to maintain

Netflix’ brand identity as a producer and distributor of quality TV. As the quote by Pramaggiore and Wallis states, a high production value comes at a high cost. When looking at the Netflix originals and their production value it can be observed that the budget of the shows must have been in the higher segment of television production. I would like to illustrate this thought with a quote from

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Netflix Chief Content Officer (CCO) Ted Sarandos about the way in which a Netflix original is created:

(…) We pick the shows by intuitive, data-driven hunches. The good example is our production House of Cards. David Fincher is directing. Beau Willimon is the showrunner. Kevin Spacey and Robin Wright are starring in it. It’s based on a piece of

intellectual property that we know very well. We can draw real data pools of people who love Kevin Spacey movies, David Fincher movies etc. (…). If the show is executed well, we know how many people will watch it. (Curtin, Hold & Sanson, 137)

Even though this quote is about data gathering and prediction of the popularity of a show, it also demonstrates that the expenses of hiring famous actors, directors etc. are not an issue. The financing strategy seems to be based on viewer data: if certain aspects are seen as ‘successful’ or popular, the budget for producing a show is appropriated to that. Besides needing to finance original content, Netflix also buys existing content. I would like to take the example of the Sundance Film Festival in 2017, a film festival for independent productions, where Netflix and Amazon were both bidding for the rights of several

documentaries. The documentaries were bought for an average of 5-10 million US dollar each. The reason why Netflix is willing to pay a lot of money for the documentaries shown at Sundance may also have to do with its branding strategy and identity construction. The prestige of the Sundance Film Festival and the type of films (independent, unknown directors) that are shown there make it a ‘highbrow’ event, which reflects on the way the audience/viewers perceive the content. So while it is unsure what percentage of Netflix’ expenses actually goes into the production of its originals or the purchasing of existing content, we do know where its going, namely high value original productions and high brow independent films (among other expenses) that contribute to Netflix’ branding strategy.

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In this paragraph I will compare the ratings of eight Netflix original shows to demonstrate the reception of the shows according to three different rating websites. The three websites I used for the ratings are IMDb.com,

Metacritic.com, and Rottentomatoes.com. The websites all use a different rating system, but can be easily compared as they all rate out of 10 or out of 100. The eight shows that I have selected to use for this table are amongst Netflix’ big list of originals. I have chosen these specific shows based on the variety in genres, starting date, and some of the shows because they have been discussed before in this thesis. The three websites that are used are selected because they represent three types of viewers: Metacritic is the professional critic, Rotten Tomatoes represents the average viewer, and IMDb represents the passionate viewer (i.e. one that is more knowledgeable than the average viewer, but not a professional critic).

Ratings for Netflix original shows IMDb

-/10 Metacritic (metascore) -/100 Rotten Tomatoes -/100% House of Cards (2013-) 9.0 76 82%

Orange is the New Black (2013-) 8.2 79 91%

Making a Murderer (2015-) 8.8 84 97%

Unbreakable Kimmy Schmidt (2015-) 7.8 78 97%

Stranger Things (2016-) 8.9 76 95%

Orphan Black (2013-) 8.4 73 91%

Bojack Horseman (2014-) 8.4 59 86%

As we can read from the table the highest average score (for all shows

combined) comes from Rotten Tomatoes, and the lowest average score comes from Metacritic. All scores are above 5.5 or 55(%), which shows that both critics and regular viewers appreciate the content as being above average. The ratings for House of Cards give an interesting outcome as IMDb rates the show very high (9.0), whereas Metacritic gives the show a (slightly) above average grade (76). Netflix aimed for the show to be considered high quality, which might imply a higher score from the Metacritic website, but instead House of Cards gets the higher rating on IMDb, from the regular audience. This could reinforce the argument given in the chapter three, in which Netflix’s connection

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to the notion of Quality TV was discussed,, in the sense that Netflix aims to create high quality television for (bigger) regular audiences instead of pleasing the professional critics. I will further analyse this data in a comparative study with HBO’s ratings in chapter seven.

4. From TVI to TVIII

Television has undergone multiple (major) transformations from the TVI era in the 1950’s until now, the TVIV era (Jenner): from channel scarcity, mass

audiences and the physical TV set in the domestic environment (Reeves et al., Jenner, Lotz, Wiliams etc.) in the former era to a highly individualized

environment with all sorts of content ready to be watched at any chosen time or on any chosen device in the latter era (Curtin, Johnson, Lotz etc.). As Curtin describes in his article ‘Matrix Media’, a lot of the technological changes in television have to do with changing the televisual flow (Williams) such as the invention of the remote control, VCR, DVD, and DVR. These

devices/technological changes all give the consumer the advantage of being able to personalize the television experience and the ability to interrupt the preferred flow of the television channels, for example by allowing them to avoid commercial breaks (remote control) or (re-) watch content outside of the programming schedule (VCR, DVD, DVR) (Curtin). Jenner gives the following short summarization of the TVI-TVIII era’s in her article ‘Is this TVIV? On Netflix, TVIII and binge-watching’ (2016):

In the United States, TVI, dating from the mid-1950s to the early 1980s, is the era of channel scarcity, the mass audience, and three-network hegemony. TVII, dating from roughly the early 1980s to the late 1990s, is the era of channel/network expansion, quality

television, and network branding strategies. TVIII, dating from the late 1990s to the present, is the era of proliferating digital

distribution platforms, further audience fragmentation, and, as Reeves et al. (2002) suggest, a shift from second-order to first-order commodity relations. (258)

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The channel/network expansion of the TVII era made the focus of channels on their branding strategies important to create a clear idea of the brand identity of a channel to target the desired audiences. The TVIII era was an era of perfecting branding strategies as will be discussed later on in this chapter with HBO as the example used by multiple television scholars (Jenner, Johnson, Reeves et al.). Apart from technological developments the television content also underwent some major changes, as the content in the TVI era was directed to a mass audience and created for mass consumption. Reeves, Rogers and Epstein link the era to Fordism:

TVI was one of the chief products and producers of Fordism, TVII exhibited a complicated product/producer relationship with post-Fordism’s service economy. (Reeves, Rogers and Epstein in

Quality TV, 87)

The key aspect to generate profit that is inseparable from making television content for mass audiences (TVI and TVII) to gain high viewer ratings is the need for advertisement and television commercials. The more viewers a show/channel had, the more income it would generate by selling commercial space. Programmes were being produced to appeal to a mass audience and to attract a wide variety of viewers (Jenner). When branding became a bigger part of television networks/channels business strategies the targeted audiences became more specific (Jenner).

4.1 HBO as TVIII

(…) Both in terms of its own status as a branded network, and in its branding of its original programming, HBO epitomises the industrial changes in the era of TVIII. (Johnson, 2007: 5)

The TVIII era can be seen as the era of branding, and HBO (Home Box Office), an American premium cable and satellite television channel, may be viewed as

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the embodiment of this era (Johnson). HBO is a channel that requires a monthly payment from its customers, and in return provides content (for example films, series, sports) that creates a certain expectation for HBO as a brand. Sex and the City (1998-2004), The Sopranos (1999-2007) and Game of Thrones (2011-) are some examples of the successful series produced and aired by HBO. What the shows have in common is a high production value (HBO aims for producing mostly ‘quality TV’) and when it comes to the content they are always on the more ‘risky’ side compared to the shows aired on the standard cable channels (sex, violence, profanity) (McCabe, Akass, 68-76). Because of the monthly fee that is required to watch HBO there is a different relationship between the channel and the customers:

The premium cable sector, as exemplified by HBO, embraces a set of commodity relations that stand in stark contrast to the broadcasting model. Put simply, ‘It’s Not (free) TV. It’s HBO’. Or, using Nienhaus’ distinction, the premium cable sector operates according first-order commodity relations, which he defines as ‘symbolic objects or flows actually exchanged for money or having prices attached’. (Reeves, Rogers and Epstein, 86)

The first-order commodity relation is part of the business model used by HBO, by providing a form of content that can be easily distinguished and recognized as HBO content, so that a particular audience can be targeted. For a customer to start paying for television content the brand of the channel should be clear and HBO is a good example of a company with a clear branding strategy. It starts with the slogan ‘It’s Not TV. It’s HBO.’ setting itself apart from ‘regular’ television and making itself different the more obvious it gets to the paying customer what kind of content they can expect.

There are three major changes in the era of TVIII that make branding particularly valuable: the escalation of media consolidation with the emergence of large media conglomerates; the shift towards first-order

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commodity relations (…); and an increase in the number of sites through which television can be distributed. (Johnson, 2007: 2)

With the increase of distribution sites of television as one of the aspects of TVIII, content branding becomes an important aspect to gain and keep

customers/ build a relationship with the customers which is also the starting point for the production of more precise targeted content (niche-audiencing). By using the slogan ‘It’s not TV’, HBO tries to separate itself from the idea of the mass consumption of culture that is offered by many of the other (free)

channels. This statement, separating itself from ‘regular TV’, with an emphasis on making quality content HBO presents itself as a company which is providing content of higher quality aiming to appeal an audience with certain taste and preference for ‘high culture’ as Johnson describes:

HBO’s slogan suggests that its programmes are good despite being television, rather than because of it. This brand strategy does not

emerge because HBO executives do not like television, but because HBO in developing its brand strategy is appealing to values that it imagines its audience will share, and hence playing on the bourgeois devaluation of television as a cultural form. (2007: 10)

So, HBO as a television company is actually using the devaluation of television as a cultural form to its advantage by branding itself as something qualitatively higher than regular television. HBO is deliberately setting itself apart from the TVI and TVII eras by using this strategy. When producing its shows, HBO emphasizes the artistic value of the projects, giving the makers artistic freedom and hiring well-known actors/producers. High culture produced by a television company would almost sound like a paradox; this is where Johnson comes with the term high-pop as a form of popular culture with a high cultural value

assigned to it:

(…) High-pop depends on the modernist understanding of artistic production as removed from commerce, labour and mass

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within mass culture goes against the rarefaction of art that is central to the modernist conception of high culture. As such, high-pop paradoxically ‘insists on the apartness of genuine aesthetic expression, but at the same time promises to deliver that experience to a mass audience (Johnson, 2007: 9)

This concept applies directly to HBO because it is still a television channel that airs a certain amount of shows at their chosen time/schedule, yet it sets itself apart by creating high-pop content appealing to likeminded audiences. So whether or not the actual content could be considered as high quality or high culture, the branding strategy to present it as such is an important part of the success of HBO. TVIII is about branding while still remaining a ‘traditional’ television channel, creating a unique and or different channel to target a certain (mass) audience while emphasizing the production of quality content/a quality content experience. The success of the HBO branding formula and the emerging of the Digital Age caused for consumers to be more and more able to determine their own personal televisual flow and acquirement of content (Game of

Thrones was one of the most pirated (illegally downloaded) series from

2011-2016 according to the website TorrentFreak.com3_{and more and more content}

is watched online via streaming sites, illegal downloading or VOD services (Curtin, Holt, and Sanson, 2-5). HBO does have an own streaming site free to use for subscribers, but only offers HBO official content. A new mode of (paid) content distribution via the Internet was a logical consequence to consumers using this medium to watch television shows.

4.2 Netflix as TVIV

In a way, Netflix uses a lot of the same branding strategies as HBO by focussing on original content that can be considered as high quality TV. Mareike Jenner argues that Netflix can be considered as part of the TVIV era as she explains in her article ‘Is this TVIV? On Netflix, TVIII and binge-watching’ by comparing 3 Game of Thrones is the most-downloaded show for five years in a row based on data gathered

by BitTorrent. < torrentfreak.com/game-of-thrones-most-torrented-tv-show-of-2016-161226/>

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Netflix to HBO. I would like to argue that Netflix is using very similar strategies as HBO and applies them to a new platform with the technological means that the digital era provides. The book Television Studies After TV edited by Graeme Turner and Jinna Tay focuses on television when it is no longer exclusively available on the physical television set and how this influences the medium. An important issue that is addressed in the book is the multitude of ways in which we can consume television (smartphone, tablet, laptop), as well as the

following question: what can still be categorized as television? Of course, Netflix started out as a DVD rental service, but quickly adapted to the demand of consumers to watch content online on different devices (Jenner). By not having to select content to create a programming schedule as TV channels have to do, the content is available at any time without restrictions that can often be found when watching TV channel content online (e.g. the content is available online only a certain amount of time after a show was broadcast). For now, HBO and Netflix can be seen competitors in the television field as producers of high quality shows, but because Netflix’s content is available at the consumer’s preferred time, for example by uploading entire seasons at once to enable the viewer to binge-watch content, the viewer experience remains diverse. Another main point about the differences between Netflix and HBO that Jenner

highlights is the way in which audience behaviour can be understood. The Digital Era is about data gathering (Andrejevic, 1676), but also, when looking at an SVOD company like Netflix, it is also about subscribers instead of individual episode viewer ratings. Jenner argues that a company like Netflix does not eliminate the idea of what television is but rather expands the understanding of what a television company can look like:

The shift signalled by Netflix concerns issues of technology, but maybe more importantly, branding and programming strategies, viewing practices independent from scheduling that lead to a complication in how audience behaviour needs to be understood and ‘success’ of a programme measured, and how familiar associations with the concept of television are not ‘merely’ subverted, but changed completely. In a matrix media and (potentially) TVIV landscape, this does not eliminate

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existing and familiar concepts of what ‘television’ is, but it extends them significantly and introduces a range of other media forms and

discourses to this matrix. (Jenner, 270)

Branding is an important part of television companies’ business strategies (Jenner, Todreas). As consumers need to subscribe to a certain brand, it is important that the brand identity is clear. HBO uses some of the branding strategies that can be recognized in those used by Netflix, focussing on a certain format for the TV shows and films produced and the high quality/high

production value feel of the content. Where HBO started to pave the way for these kinds of strategies, Netflix built on that by producing its original content. Netflix originals, as different as the genres or subjects can be, all have some aspects in common that make them recognizable as Netflix content. The shows produced by Netflix maintain a flowing storyline making it easy to binge-watch, but also the auto-play technology that directs the viewer to the next episode makes it tempting to keep watching. The emphasis also lies on high quality content as mentioned before, but as Netflix relies on monthly subscriptions they have more freedom to create content for niche audiences as Jenner argues by using the example of the fourth season of Arrested Development (2003-). Arrested Development was first aired on FOX but due to low ratings it was not continued after the third season. The series acquired a cult status and Netflix used this cult status to produce and distribute a fourth season on its platform. The characters remained the same but the plot became more complicated as the season was uploaded at once; Jenner argues this was because the Netflix consumer is likely to binge-watch a series (263). Binge-watching is not a new phenomenon bound to the streaming platforms since it can be traced back to the availability of DVD boxes, but a platform like Netflix does encourage binge-watching by producing many of its shows as one long story (House of Cards for example). The series are produced and presented as one long story through the use of continuity in narrative, no closure at the end of episodes, and character depth/development. The storyline is more similar to the storyline of a (long) film than the storyline of for example a series with a story arc in every episode.

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By providing a wide variety of content with similar features or a recognizable style, Netflix allows the consumer to create their own

individualised viewer experience based on their identity and preferences:

(…) The blurring of lines between production, distribution and exhibition may only be a logical consequence of a marketplace that panders to consumers who link consumer habits and identity construction. In other words, Netflix’s tailor-made product can only function in a system of distribution where this product is also individualized. (Jenner, 269)

The link between consumer habits and identity construction is a crucial one for the type of content that Netflix produces and distributes. TV shows that can be considered cult-TV can be part of consumers’ identity construction as it is a specific genre that can be specified as ‘not for the masses’. Almost every part of Netflix’s branding strategy has a connection with breaking away from mass culture, by actually making cult content that is consumable for masses. This concept of high-pop (Collins) as described earlier in this chapter would be a fitting definition for the Netflix original content as it gives the audience high quality shows with the feel of cult-TV whilst being consumed by large numbers of Netflix subscribers. So by creating an environment that offers a wide variety of (high quality) shows, while not being restricted by viewer ratings, Netflix is a platform for niche audiences who can create their own viewing experience as part of (or according to) their identity construction.

4.3 Television and branding

To get a better understanding of HBO and Netflix as a brand, in this section I will take a closer look at branding in television. Branding is an important aspect for television distributors to reach their targeted audiences. It is necessary to have a clear brand image so the consumer will know what he/she is paying for and what services and content can be expected. To establish a brand in the

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television landscape a company must emphasize why it is different from (or better than) the existing brands. So it may be wise to choose a certain targeted audience and build a brand around their preferences.

A brand is a product that is differentiated from its competition by means of design, name, mark, imagery, or a combination of any or all of these (Todreas, 173)

As Todreas argues, a brand is used to differentiate from competition. HBO does so with its slogan in an unambiguous way by stating ‘It’s Not TV. Its HBO’. HBO is in fact TV, but it is branding itself as something different from regular TV, which mostly has to do with HBO’s emphasis on producing quality TV versus regular TV’s notion of producing and distributing productions for mass

consumption (Bourdaa, 18). Netflix, on the other hand, uses its name to clarify its services linked to the platform these services are provided on, Flix (films) on the net.

A successful digital brand would serve as the filter that users need to cope with information overload. It would be that trusted place where users can go to get a particular type of entertainment or information. (Todreas, 178)

Netflix’ interface is focused on the content, the only options for the user are related to viewing or searching content. The platform is focused solely on consuming content which makes Netflix’ brand name simple and clear for consumers. Apart from the platform itself, Netflix offers a certain type of content, its original content, as part of its branding strategy, as was discussed earlier. In this way the brand is connected to the service and the services speak for the brand as well. HBO also uses this strategy by emphasizing that they offer ‘quality’ content and using ‘difference’ from ‘regular’ TV to appeal to their targeted consumer.

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From a semiotic perspective, the brand is a device that can produce a discourse, give it meaning, and communicate this to audiences. The brand expresses values and is presented as an interpretative contract between the companies and the consumers; it proposes a series of values and the consumers accept (or not) to become part of this world. (Scolari, 599)

So apart from a brand’s function to differentiate a company from its

competitors, and to serve as a filter, a brand is also used to express values to the consumer. A set of values presented by HBO are that high quality series are above (or elevated from) regular TV, which is necessary to persuade the

consumer into paying, since HBO is a premium channel that requires a monthly payment (Johnson 2012, 30). Netflix does the same with its originals, but Netflix adds the factor of user agency where the consumer has more freedom to decide how to watch their preferred content and how. Binge-watching and uploading entire seasons at once is an important part of Netflix’ branding strategy because it gives the consumer more control over how they watch the content and when. Being given the option to watch multiple episodes in a row without having to wait are part of Netflix’ values that consumer should be able to have control over their content consumption. As Scolari argues, a brand is a device that can produce a discourse, the discourse for Netflix being to give their consumers freedom of content consumption in exchange for a monthly fee (first order commodity). Also part of this discourse is increased

individuality because the consumer is not restricted to airing schedules for example.

5. HBO

As the slogan ‘It’s not TV. It’s HBO.’ Suggests, HBO is marketing itself by pointing out the differences of the network in comparison to the traditional networks on cable television. Customers pay a monthly fee to receive the (multiple) HBO channel(s) and consciously make the decision to subscribe to HBO. I will start

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by looking at some of the qualities and aspects that made HBO a recognisable and distinct brand to be able to make a comparative analysis between HBO and Netflix and their branding strategies in the current television landscape.

5.1 HBO as part of the post-television and post-network era

The step to create original content was a defining one for HBO. By producing original shows like The Sopranos (1999-2007) they set themselves apart with a

raw style of television, because they were allowed4_{to show swearing, nudity or}

violence that was otherwise avoided by broadcasting networks. By choosing to set themself apart in this manner the HBO branding process started to form and set the tone for the way HBO is known today. Focussing on quality television with an edge, a certain niche audience was targeted instead of

making TV for the masses. As for today, HBO still scores major hits with original series like Game of Thrones (2011-), one of the most (illegally) watched series since it first aired in 2011. The ‘It’s not TV’ slogan complements the branding strategy of HBO to be different and innovative as a company and in its content:

‘It’s not TV’ focuses on numerous aspects of the ‘post television network,’ from HBO’s political economy within the media industry and recent phenomenally popular and pioneering shows as well as its failed series to the production process itself and the creation of a brand commodity, along with an understanding of HBO’s place as a market leader and technological innovator (leverette, Ott, Buckley, 8).

The two aspects, namely the creation of a brand commodity and HBO as a technological innovator, are a very thorough business strategy for a

content creator, and have been copied by newer companies like Netflix. By creating a strong and recognisable brand like HBO did the way was paved for a new/more versatile televisual production/distribution type of

4 The rules of the FCC do not apply to premium cable channels giving them no restrictions in their content as opposed to broadcast channels that are bound to the rules of FCC.

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company with original programming as a focus point. Another argument that can be named for HBO’s success is the combination of three aspects of HBO as being a part of certain cultural production:

HBO’s brand identity, technological innovations, and original programming have taken hold of the public imagination and

emerged as unique in television’s cultural production (Leverette, Ott, Buckley, 8).

So, HBO as part of the post-television and post-network era combines different types of strategies to create a televisual experience as a brand. In the next paragraph I will discuss the part that HBO’s marketing strategies have played in their brand identity structure.

5.2 HBO and marketing

HBO is often used as the example for a TVIII company, and this also applies to its marketing strategies. The use of cross-platform marketing and promotion attributes to the TVIII qualification of HBO. And because HBO is a premium subscription channel the service itself is also part of the marketing strategies:

With cross-platform marketing (…) HBO must continuously promote discourses of ‘quality’ and ‘exclusivity’ as central to the subscription experience. These discourses aim to brand not only HBO, but its audience as well. (Santo, 20)

So, HBO’s marketing contributes to its branding strategies and brand building by promoting discourses of quality and exclusivity because consumers need to pay a monthly fee, but also to create an identity construction that applies both to HBO as a brand and to its audience as consumers of high quality content. The audience needs to identify with the brand, or be willing to identify with the brand to become a paying customer. The discourses of quality and exclusivity create an expectation for the consumer, and at the same time it

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contributes to HBO’s branding strategy to be different from regular TV. These discourses are spread through cross-platform promotion by HBO, on TV but also on HBO’s website:

HBO has a privileged site for its own self-/cross-promotion, and trailers and promos have been intensively used to promote the series on HBO channels. (…) These included explicitly inter-textual trailers; one featured enthusiastic notices from

professional media critics, another appreciation from fan sites and bloggers. Both highlight core brand features: confirming quality, promoting a cult-fan engagement, while also appealing to a broader audience. (Hardy, 10)

As the quote from Hardy confirms, HBO’s marketing campaigns are focused on confirming and maintaining HBO’s brand identity as a producer of quality content. By using both professional media critics and fan sites/bloggers as a testimony to the quality of HBO’s content, a combination of critical acclaim and popularity among the regular audience is established. By promoting a cult-fan engagement while also appealing to a broader audience, as Hardy writes, it can be argued that HBO is using high-pop (quality content for a mass audience) as part of its branding strategy.

5.3 Production value, financing, and ratings

As discussed before, HBO is branding itself as a high quality content producer. High production values are an important aspect of high quality TV content because it attributes to the visual quality of a production. In this section I would like to take a look at HBO and its marketing strategies in the context of HBO being a TVIII company. How production value and financing contribute to HBO’s aim for a certain audience and brand identity is connected to its

marketing strategies. Robin Nelson summarizes HBO’s strategy of financing to accomplish a high quality production:

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The huge media conglomerates which have emerged in TVIII have the critical mass to afford the high budgets which ambitious production demands. Though they do not yet quite match the mega-budgets of blockbuster movies, today’s TV fictions command significant amounts (e.g. the $100 million for the 1261-hour episodes of Rome). (Nelson, 28)

Film is often associated with high quality due to the budgets that are provided by production companies. Because a media conglomerate like HBO acquires similar budgets through its business model they are able to produce expensive high quality content. As Nelson argues, this does not guarantee critical success, but it does contribute to HBO’s brand building and is a significant part of its marketing strategies (Nelson, 28). HBO’s slogan (‘It’s Not TV. It’s HBO.’) suggests that it is part of the branding strategy to differentiate HBO from regular TV, mainly because of the content that HBO produces. High production values are a significant part this branding strategy:

Love them or loathe them, the products of HBO Premium—Oz, Sex and the City, The Sopranos, Six Feet Under, Carnivale,

Deadwood, Entourage, The Wire and more—are undeniably different. Indeed, all they have in common is that each is distinctive with high production values. (Nelson, 26)

So, while upholding high production values to ensure the quality perception of the content, HBO produces content for different audience types. Audiences are attracted by the ‘high quality’ brand identity of HBO, and divided into niche audiences by the different genres of content that are offered. High production values and financing have a significant role in this identity construction as both HBO and the audience identify with high quality discourses.

5.3.1 Ratings: IMDb scores, Metacritic, and Rotten Tomatoes

For the ratings I have made a selection of HBO original shows while trying to represent a show from multiple periods of time as HBO has been producing

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original content since the 90’s. Game of Thrones is a currently running show and as mentioned before it can be considered as a popular show. I have used the same rating sites as I did with the Netflix rating section namely: IMDb, Metacritic, and Rotten Tomatoes. As the table shows, some of the series cannot be found on Rotten Tomatoes. The IMDb ratings show a consistency in grading with the exception of Sex and the City, Nelson argues that Sex and the City was criticized for promoting consumerism (33), which could explain the lower rating because consumerism is not part of a quality discourse. When looking at the average grade for all the shows in the table Sex and the City scored an average of 2.0 or 20 points lower on both IMDb and Metacritic. While Sex and the City was of cultural value as the series was about liberating female sexuality (Nelson, 34), the displayed consumerism overshadowed the cultural aspects, and caused it to fall outside of the quality discourses that are especially important to professional media critics (Metacritic).

Ratings for HBO original shows IMDb -/10 Metacritic (metascore) -/100 Rotten Tomatoes -/100% Game of Thrones (2011-) 9.5 80 95%

Sex and the City (1998-2004) 7.0 52 /

The Wire (2002-2008) 9.3 79 96%

The Sopranos (1999-2007) 9.2 88 97%

Boardwalk Empire (2010-2014) 8.6 88 91%

Rome (2005-2007) 8.8 71 /

Six Feet Under (2001-2005) 8.7 74 /

When taking Sex and the City out of consideration, the ratings for the remaining shows are consistently high, showing that high production values contribute to the reception of the series. Another characteristic for HBO productions is a result of their freedom from the FCC rules that apply to regular American

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television channels giving HBO the possibility to create content that resembles cinema:

HBO ‘creatives’ are able take the risks from which a disposition to conservatism and LOP has historically constrained American television. The freedom from the regulator is one aspect, which allows HBO Premium output to be more like cinema. (Nelson, 31)

Cinema has been part of the quality discourse for a long period, whereas quality television was sometimes considered an oxymoron (McCabe, Akass, 1). Considering quality TV an oxymoron is obviously an opinion but it illustrates that television was, and still is, in a stage where it is not automatically part of the quality discourse. HBO’s ratings are proof that it is possible for a television company to acquire the reputation of a quality content producer, which can then be used to reinforce HBO’s brand identity.

6. Netflix and marketing campaigns

To examine Netflix and its use of marketing campaigns I analysed the

marketing campaign for the first season of House of Cards as part of the Case Study course. This marketing campaign demonstrates how Netflix uses its original content for its brand identity especially since House of Cards was Netflix’ first original production it was important that it would be successful, or at least widely discussed. Netflix uses cross-platform promotion with

campaigns on social media as well as television ads.

6.1 House of Cards (2013-)

As mentioned earlier, House of Cards is the first Netflix original series ever produced by the SVOD company. The decision to start making original content comes from a business point of view: Netflix was offering content owned by third parties, which could raise the fees on their content at any time (or even retrieve the content from Netflix). The decision came from Netflix CEO Reed Hastings to start creating original content and the first two House of Cards

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seasons had a budget of a 100 million dollars from a total of 3,9 billion that Netflix had available for original content since 2011 (Forbes.com).

There are multiple aspects that make House of Cards fall into the

category of quality TV (McCabe, Akass): a high production value/budget, a well-known director, and well-well-known actors in the leading roles. Of course it has to be noted that none of these aspects are unique since HBO is known for a similar strategy when it comes to creating original content as a way of marketing the whole HBO brand or trademark:

Latitude to tell stories differently, creative personnel given the autonomy to work with minimal interference and without having to compromise, has become the HBO trademark – how they endlessly speak about and sell themselves, how the media talks about them, and how their customers have come to understand what they are paying for. (McCabe, Akass, 87)

As discussed before Jenner defined Netflix as TVIV and HBO as TVIII and in the production aspect Netflix is also taking their method a step further than HBO. Al thought there are many similarities in the production method of high quality TV shows such as House of Cards, Netflix made the decision to upload an entire season of the series. This decision was seen as very risky and controversial by many media because normally the first few episodes of a show determine whether the show is successful enough to be continued and receive funding. Netflix CCO Ted Sarandos explains the decision and why, according to him, its more logical for a platform like Netflix to upload an entire season at once. The following quote is from the book Distribution Revolution by Curtin, Hold and Sanson where Ted Sarandos is interviewed about Netflix’s production and distribution strategies: ‘Audience content development is flawed, metrics are out-dated, marketing is too costly, and the future of television is one made up of taste-based algorithms’ (Curtin, Hold & Sanson, 132). The strategy that Ted Sarandos is pointing out is the use of algorithms instead of audience

measurement by real-time ratings. Netflix has its own means to do so because the platform provides the data to make an estimated guess on the popularity of a new show. Apart from the distribution strategy Netflix also uses some other