Could Netflix be reviving the purchase of news content?
Hitting the News Jackpot Without the Backlash
Netflix is shaking things up in the streaming world with its latest move - buying a pilot TV series from The Daily Beast. This isn't just about adding another show to their lineup; it's about tapping into the pulse of current events without the baggage.
According to Semafor, this 30-minute show is all about 'trendy, buzzworthy news happenings of the recent past.' This ventures into uncharted waters for Netflix - creating news-inspired content that steers clear of brand safety issues.
This isn't a leap into hard news, but rather, a peek at how close to real-time events a platform can get without sending advertisers running for the hills.
Advertisers have been skittish when it comes to news content, deeming it too volatile, too polarizing, or simply too risky. Even when neutral, news adjacency has become a potential reputational landmine.
But what if that fear is unwarranted? A study by Stagwell in 2024 found just that. Ads placed next to 'dangerous' news stories - including Trump, war, and inflation - performed surprisingly similarly to those beside sports and entertainment. Brand favorability dipped by less than a point (67.2% vs. 68.3%), and among Gen Z, purchase intent peaked at 69% when ads ran alongside hard news.
The message here? News is under-monetized, often avoided, and still a goldmine for reaching valuable audiences.
Netflix might be testing this theory. The pilot isn't live, political, or reactive in the Twitter sense. Instead, it seems to be a blend of what Netflix does best - limited documentaries, news-adjacent true crime, zeitgeist-y drama - just served up faster and lightly labeled.
A news-adjacent format that appeals to viewers and doesn't scare off advertisers is the commercial Holy Grail.
The Daily Beast, too, is changing gears. With CCO Joanna Coles and CEO Ben Sherwood at the helm, the publisher has shed staff, toned down its editorial tone, and found its way back to profitability, making it a perfect partner for Netflix's foray into more timely content.
For planners, the question isn't what this show becomes, but what it enables. If Netflix succeeds in monetizing news-like content without calling it that, it could redraw the boundary of what's considered brand-safe.
Featured image: Kyle Loftus / Unsplash
Behind the Scenes:Netflix's acquisition of the pilot TV series is a strategic move to create content that captures the essence of real-time news events without the risks associated with traditional news programming. This approach allows Netflix to remain relevant by covering topical, buzzy news events in a 30-minute format, without explicitly labeling it as "news." This strategy helps maintain brand safety by avoiding sensitive or polarizing topics that might deter advertisers.
The series, produced in collaboration with Bright North Studios, aims to navigate the fine line between providing timely content and avoiding brand safety concerns that often come with hard news. This move is also part of Netflix's broader strategy to compete with YouTube, which has become a major platform for real-time and news-related content. By offering a unique format that blends news with entertainment, Netflix hopes to attract viewers and advertisers alike.
This strategy by Netflix to create a news-adjacent series blends the best of both worlds - capturing topical, buzzworthy news events while ensuring brand safety by avoiding sensitive topics. The venture into uncharted waters of news-inspired content highlights Netflix's ambition to compete with platforms like YouTube, offering a unique blend of entertainment and timely news.
