Ted Sarandos covers this week’s Variety. He’s celebrating 25 years at Netflix, a time period in which he’s turned a DVD-by-mail service into a $410 billion streaming juggernaut. Netflix pioneered all of this, and Sarandos watches Netflix’s imitators carefully. I came away from this interview sort of fascinated by him and his vision. So many people in Hollywood consider him to be the guy who will single-handedly ruin the theatrical movie experience, but Sarandos actually loves going to the movie theater (and Netflix owns a theater too). He dished about Netflix’s upcoming year, which includes new seasons of Squid Game, Wednesday and Stranger Things, plus new movies from Guillermo del Toro and Noah Baumbach. And a new Knives Out! One of the biggest headlines from this piece is when Variety asked him about the Duke and Duchess of Sussex. Some highlights:
In 2017, he said he didn’t understand Amazon’s original content strategy. “This is just me as an observer. Sports has been very effective. And I don’t know if that’s their entire strategy.”
Whether he thinks Amazon will be able to compete with Netflix longterm: “I don’t. It’s hard for me to say. I don’t know what their long-term plans are. They’ve been streaming exactly as long as we have. They’ve been making original content exactly as long as we have.
What he thinks of AppleTV’s original content: “I don’t understand it beyond a marketing play, but they’re really smart people. Maybe they see something we don’t.”
Whether Netflix will renew its partnership with the Obamas: “I don’t want to comment on anyone’s renewals. In general, the ones that we’ve had are bespoke and rationalized around output. I think of them as “show-verall” deals. We outline what we’re going to do together over the next five years and package it in a deal.
Netflix’s investment in the Duchess of Sussex’s As Ever line: “We’re a passive partner in Meghan’s company, and it’s a big discovery model for us right now.
Whether Meghan is the right person for Netflix to bet on: “I think Meghan is underestimated in terms of her influence on culture. When we dropped the trailer for the “Harry & Meghan” doc series [in 2022], everything on-screen was dissected in the press for days. The shoes she was wearing sold out all over the world. The Hermès blanket that was on the chair behind her sold out everywhere in the world. People are fascinated with Meghan Markle. She and Harry are overly dismissed.”
Whether the investment in the Sussexes is anything beyond a marketing play: “It’s good for marketing and branding. This is all expressions of fandom. I don’t really see us having theme parks, but I do see us having a lot of touch points with consumers like this. I admire the Topgolf model versus the Disneyland model, where people go more frequently through the year and you come back to check things out. We’re going to be much more part of our fans’ lives than going into Disneyland once every couple of years. And I’m not sh-tting on Disneyland.”
This is not the first time someone in the Netflix C-suite has stood up for the Sussexes and maintained that Netflix is absolutely on good terms with Harry and Meghan. Maybe the British media will finally believe it when it comes out of Ted Sarandos’ mouth, you know? Clearly, Sarandos sees something there, and he knows that there’s an especially rabid fascination with everything Meghan does, says and wears. And he wants to be part of that, and he wants to profit from it and he wants to find the best way to monetize that fascination.
I’d just like to point out something else though – while Sarandos is defending Meghan and standing by WLM and As Ever, he’s also making it clear that it’s not like Netflix is laying out a fortune on this experiment. That’s what I said when I saw WLM – it will be so easy for Netflix to greenlight a dozen seasons, because it’s so inexpensive to produce. It’s the same with As Ever – the money Netflix is putting into As Ever is basically a rounding error for a $410 billion company. That, more than anything else, is why it’s easy for Sarandos to support the Sussexes. Because it really doesn’t cost him that much to do so. Plus, I think he genuinely likes Meghan.
Photos courtesy of Netflix, cover courtesy of Variety.
Lots of companies have made easy profits off of Meghan using their products. This opens doors for sponsorships for Netflix and her.
Yup. In the beginning, the British press also wrote about the Meghan Markle effect where clothing and jewellery she wore sold out. So Sarandos has passively watched this for years, and as mentioned in the content H&M made specifically for Netflix, he saw it continue with the blanket and shoes. This man thinks in bottom lines.
I mean LeCreuset is benefitting the most from Meghan’s show right now.
Le Creuset is smiling all the way to the bank 🤩 only someone with no vision would say Meghan is not a wonderful partnership for Netflix, no company could pay for that kind of coverage 🤩
Confession – I bought the braiser pot in olive!
I like what he said about the renewals too, especially as it related to people like the Obama’s. That they are looking for specifically a certain amount of shows per year or certain output, that they decide with each other what they’ll do over the next few years and then create a package around that. This clarification though that they know what they are getting as far as output is needed unfortunately. It won’t shut up the British press of course who are determined that Harry and Meghan are failures that everyone hates.
But hopefully some of the people here who are constantly nitpicking and asking why they aren’t doing promo for this, or putting out that for Netflix will see that they have already worked out what their involvement and level of content production will be. They don’t expect 80 hour work weeks for them doing elevator pitches. For all we know H&M said we’ll do a show a year for you in 2020. If they do continue to work with Netflix it’ll probably be on a basis of this sounds interesting should we proceed yes or no.
I agree that a package (meaning: project by project) deal makes the most sense from a Netflix corporate perspective. I imagine they pay a retainer (most likely nonexclusive, so Meghan and/or Harry can continue to do projects with other partners (eg Lemonada for podcasts) for Meghan and Harry, and then project by project there is a payment for what a given project is likely to bring in terms of new subscriptions, likely in percentage terms, which to my knowledge is still the only metric Netflix cares about because it’s one of the only direct measures of content value that they report to Wall St. Any money from M&H for Netflix on the top of that (eg profits from a being a passive investor in As Ever, support in retail stores etc) is icing on the cake.
Any given project (package) will include requirements for promotion based on the audience for the project, so that’s probably worked out among Archewell Productions, WME and Netflix on a project by project basis: we’ll do X amount of promo for this, Y amount of promo for that. I’m just talking about deal structuring but it sounds rational to me…
And if Ted considers their partnership as marketing for Netflix, that’s in line with corporate thinking, which generally sees marketing as a slush fund that can be increased or decreased depending on how the overall company is doing…Seeing M&H and their content as “contribution to the (Netflix) brand” can be read in many ways.
Let me start by saying HAHAHAHAHA. I wonder what the “Netflix insider” says now. However, I’m sure they can still twist it, like the Netflix exec didn’t want to say that the contract is renewed so they hate Meghan. Or something like that.
My second point would be HAHAHAHAHAHAHA. Now that they declared Kate a silent fashion person (or something like that) who only focuses on work, they can turn back, again, and start peddling how her clothes sell out too!!! Which I don’t think they do, but the BM will say that regardless.
The people who’ve overly dismissed the Sussexes have been the Establishment and the tabloids. They are culturally influential.
Anyone who can objectively crunch the numbers knows this is a charismatic couple at the height of their popularity. The interest in them is high. The rest is noise but the consumers have been buying with their eyes and their wallets for sometime now.
The rest of the Windsors are in their shadow and long that will continue until the Establishment accepts that the values that this couple provides are incongruent with their existing business model of hating them. But I doubt they’re smart enough to self-reflect.
Netflix’s Ted is just pointing out the very obvious. The numbers don’t lie. Meghan moves merchandise, she concentrates eyeballs.
This. For some reason I rage listen to Tom and Lorenzo and they are very very confident Meghan won’t get a season 3 because this season is a “disaster”. People truly forget how money works when it comes to Meghan. The Walking Dead is still making new episodes ffs! If there’s money to be made, she will get more seasons. Period.
I don’t even rage listen to them. I don’t go to their site. I don’t go to Lainey’s anymore either. Every now and then I might read one of Sarah’s takes but for the most part, no.
I absolutely loathe Tom and Lorenzo. The way they write and talk about Meghan is blatantly disgusting, and their bias is so blatant. You could point out outfit for outfit hoe Kate was copying Meghan and they’d deny it while attacking what Meghan wears. They praised Kate’s sad sack “take my work seriously” brown outfit. I’ve been blocked by them for calling out their misogyny and nastiness.
The day T&L wrote & highly praised KKKate’s bright blue taffeta 80’s prom dress, which she wore to the state dinner was the last day I visited their site. Not only they have different taste in clothes than mine, they also are those marginalized people (gay) who bad mouth other minorities.
Mark Cuban said they are so influential that he could make them half a billion in five years 💰
Late yesterday, I was looking a lot of the articles reporting on these positive statements, and it was very nice to see even some of the worst British media copying them! The media must be in shock, but at least this backing of the Sussexes has been very good news.
The other thing that wasn’t talked about is Netflix is extremely interested in global content. Harry and Meghan have global interest.
Yup, like Diana. When WLM is trending across markets, their global impact can’t be underestimated. Spare FFS should have been the bellwether.
Hence the tabloids are failing because the Murdoch press might rule certain Anglo markets but that’s about it.
African and South American countries have welcomed them. Meghan has shown with her linguistic skills how she can definitely be a bridge across cultures and countries. Yup, they’re popular despite what the rats write otherwise.
Totally agree, which is why I’ve been saying for ages that Harry should do a Bourdain-style “No Reservations” show focused on international travel (partnership with Travalyst and Netflix, anyone?), that maybe skews more toward climate change, conservation and effects on the local areas he visits, with Meghan appearing occasionally to do food or highlight her other interests. I bet there’s a pretty big Netflix audience for that and the promo just writes itself (Late Night shows with clips of great animals or interesting weird plants, just off the top of my head…) Easiest job in the world to sell that content!
Genius. Would watch x1million
Interesting idea. Perhaps you already know, Michael Steed, the director for WLM, worked with Bourdain, on the Parts Unknown series.
@Lady Ester: Fantastic idea! I’d definitely watch this and Harry would absolutely smash something like this 🩷
Not likely when his kids are so young, and Harry has legit jobs & charity works to attend to. (Maybe later when the children are older and his threat level is lower?) I would love to see a coffebook of Harry’s photo collection that he’s shot over the years.
About a year ago I mentioned (like others), that a Meghan/H&M travel/food show would be a great watch. I’m on board. They invigorate people with their genuine interest in other cultures/food. Separately and individually, Together, whew, a whole other experience, H&M are just fun and joyful wherever they go.
I enjoyed the support being shown for Meghan. I also understand the cost per episode vs a big budget film. But I did not draw an inference regarding cost per episode re WLM as an experiment. Could be semantics because I am not an insider nor a mind reader. Just enjoying watching Meghan’s joy and Black folks purchasing of La Crueset or sharing previous purchases after watching her show. The Sussexes are magnets for global interest.
I think the experiment part was more in regards to being investors in her products? Has Le Creuset said anything about the Meghan effect?
I wonder if La Crueset hasn’t already invested by supplying her with cookware for the exposure. As the man said, she is an influencer and products fly off the shelf when she uses them.
La Creuset is probably praying that Meghan doesn’t come out with her own cookware. They should be treating her very, very well.
I went into Willliam Sonoma this weekend, La Creuset display right at the door as you walk in.
@Lizzie – I was there yesterday, same thing! Table with display of the white pieces including that new petal top one, just inside the door as you walk in.
Note folks – it’s LE Creuset. Mindy was saying it wrong on her episode.
https://www.lecreuset.com/
I’ve had my cherry red Le Creuset 6-7 qt. dutch oven for years. 15? Great investment. I was cringing at the buy-back then I got it for $125. It’s marvelous. Awesome for bread baking.
Ok I’m sure now that he has said what he did about the Sussexes the BM will now try to find fault with him. I think it was great that he stands behind them. Also happy for a new Knives Out!!
The BM are more than welcome to take on Netflix. So far the BM have been the Goliath terrorising and illegally bugging the many Davids out there. Now, it’s one Goliath against the other. It’s a more level playing field. I’d really love to see how this would play out. 😂
It’s not Netflix’ first time at the rodeo for BM nor even for the BRF. The BM jumped gleefully all over “The Crown” especially when even British MPs, not only the British RF pissed all over it, wanting to require a disclaimer on every episode saying “This is not a documentary” etc…in the end, the writer Peter Morgan softened the content critical of the RF (note how drastically his writing about Charles changed) and everything went away and everyone forgot about it. Netflix will be fine
Yes they have gone after Netflix but what I’m saying is they will make it more personal and go after Ted personally. It’s what the BM does.
Netflix : “We’re a passive partner in Meghan’s company, and it’s a big discovery model for us right now.”
Would love to hear more details on As Ever. What does he mean by saying it is a big discovery model for Netflix.
I think the idea of selling products like this based on a show. this isn’t the same as just straight merch like for Stranger things or something. I think they’re watching and waiting with Meghan’s products (knowing they’ll sell so its a safe bet) so they can see if they want to try this model with other shows.
They tried to do pop-up shops with Bridgerton, but it was so small in quantity, considering the show’s popularity. They are probably testing it out with Meghan’s show now. It is no brainer to sell stuff, marketed throughout the shows. They probably look at the cost and revenue of the operation to see whether it is worth it for other shows too.
He is saying they are using MM’s business as a test to see what things she does that might be leveraged in the future, either financially as a simple investment or as new ventures in other areas NF is nit in yet. Plus they get smart p.r. out of it and keep other streamers from picking her off if nothing else.
I like his comments. He’s talked about everything that Meghan’s associated selling out in another interview. I think this is the main reason for Netflix going into business with her.
I was confused about his comments on Apple’s original content, A lot of it has been really good.
HAHA I just said that in my comment below. To me, Apple’s issue is they don’t advertise properly. My favorite social media comment about Apple was something like “Apple TV is making the best shows on TV right now, but they’ll be damned if they tell anyone about them.”
Lordy, I just saw a headline that apple is losing a billion a year in streaming so maybe that’s what he means. and don’t get the wrong, they’ve got some misses in their content. But overall, they’ve got some really really quality shows on there.
Sounds like Apple assumed that its customer base would automatically translate into Apple TV watchers. So no need to advertise…And isn’t it only available on one or a couple platforms?
Apple doesn’t create as much content but it’s almost always good quality.
i don’t understand his comments about Apple TV. I understand Apple’s content, I dont understand their marketing strategy. so if he thinks its just a marketing ploy, then its failing miserably lmao. But I do think Apple has the best original streaming content overall.
As for his comments about Meghan – yeah, she moves products. I like that he’s openly admitting that he realizes her influence and I’m SURE that’s why Netflix is partnering with As Ever. They want more of that Meghan influenced pie. If she can sell out Hermes blankets (that I’m sure weren’t cheap) and now Le Creuset (which also isn’t cheap), then she can sell out anything.
But I also think their projects for Netflix are relatively low cost and high reward. WLM wasn’t that expensive to produce and its been talked about almost nonstop in the press for weeks now. I can’t imagine POLO was that expensive to produce since it was pretty much all filmed in one area over the course of a few weeks/months. That didn’t get the views that WLM got obviously (based on what we know anyway) but i’m sure Netflix was happy with it since it probably was so low cost. Even when they’re talking about that Carley Fortune movie – its not like Meghan wants to make the next Masters of the Air or something (that’s what we’re currently watching on apple lol.) She’s not doing these extensive documentaries that require a lot of overhead. So yeah, I’m sure Netflix is probably very happy with their output. They’ve put out 4 original series in less than 5 years. (H&M, HoI, Polo, and WLM) and co-produced Live to Lead.
Isn’t he the one who said that he’s never seen heads turn in a room like they do when Meghan enters?
Yeah, I can’t imagine they won’t want to do additional seasons of WLM, especially if the cost is low and it breaks into the global top 10 with each new season. What would be the reasons not to?
Exactly! It didn’t cost the earth yet it got high views internationally and lots of social media engagement. Plus the tie in to as Ever when it launches and hopefully adds more product. I’m here manifesting some seasons of With love, Meghan – on vacation” as she goes to different venues and hopefully a holiday season. You know Meghan goes a little extra for Christmas and I’d love to see it.
I find it endlessly entertaining that the British media will do their thing, push a toxic, horribly dysfunctional narrative about the Sussexes, while American business will do ITS thing: exploit the attention for free marketing. Americans will make money off the Brits.
British business brands saw an uplift when Meghan was on the island. Off the island even now, Waitrose is getting a boost.
But unlike American business, British business would prefer to defer to the Crown because of…knighthoods and the like.
This is the truth in a nutshell: “People are fascinated with Meghan Markle. She and Harry are overly dismissed.”
They continue to defy the expectations the British press has for them. And it enrages the rota.
Let’s be real- this man knows why Suits was streamed for a gazillion hours last summer. It’s more of the Meghan effect.
She’s an increíble influence on culture.
Meghan definitely is having a cultural impact, and even her haters know this. I’m currently in my work quarterly meeting and one of the presenters are mentioning, several times, embracing joy. It’s up there on the slides. The word joy is showing up everywhere and that wasn’t out there the way it is now until Meghan said it. A lot of Black women, especially after being ignored this election, are resting and embracing her show, because they need a break from the ugliness. The influence is there and the worst fear of those who dismiss he as cringe or out of touch r, is her visibility and influence. A simple cooking lifestyle show shouldn’t be setting off this amount of discourse, where everyone is asked about her, where think pieces are written on if she “ deserves “, and the conversations those pieces elicit.
Having worked for so many different companies in different industries through the years the bottom line is the numbers. And M is exceeding them. Numbers don’t lie. The BM just can’t admit that publicly.