Netflix leans on 'what's old is new again' strategy

Netflix has indicated it could further embrace its strategy of licensing older content from third-parties and bringing the shows and movies onto its streaming platform. 

The company said last week it "may have increased opportunities" to license more content "as the competitive environment evolves." It did so in a shareholder letter released alongside its financial results for the third quarter.

"We believe this will deliver additional value for our members, as well as for rights holders who benefit from increased awareness and revenue that Netflix delivers, in addition to the new life that success on Netflix can drive," the company continued. 

Netflix highlighted the performance of legal drama "Suits" on its platform as the company and co-CEO Ted Sarandos discussed its strategy around licensing. That show became available on Netflix back in June, nearly four years after its original nine-season stint on the USA Network had concluded, and quickly gained traction among subscribers. 

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"Suits" clocked 1 billion viewing hours on Netflix from June 19 to Sept. 10, according to the company. Nielsen data reported by Netflix also pegged the program as having been watched by more people for those 12 weeks than any other film, original TV or acquired TV content on streaming. 

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"I think ‘Suits’ is a great example of the impact of the Netflix effect that we can have because of our distribution footprint and our recommendation system," Sarandos said. "We were able to take ‘Suits,’ which had played on cable and had played on other streaming services, and pop it right into the center of the culture in a huge way, not just in the U.S. but all over the world."

There is a new "Suits"-related show now in the works at NBCUniversal, according to reports.

Sarandos told analysts and investors that licensing, a tactic it has "always" used, has helped the streaming giant offer more content that appeals to "a wide range of taste." 

"We can’t make everything, but we can help you find just about anything," he added.

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The company reached an agreement with Warner Bros-Discovery not long ago that saw HBO shows like "Ballers" and "Insecure" play on Netflix’s platform. Those shows "were very successful on Netflix, and they popped into the top 10 on their originating network for the first time," according to Sarandos. 

Netflix data showed "Ballers," which featured Dwayne "The Rock" Johnson, spent two back-to-back weeks in the platform’s top 10 for television in the U.S., with it sitting in the No. 3 spot in the week ending Aug. 20 and taking the No. 9 place in the one after that. 

HBO titles like "Six Feet Under" and "True Blood" are also expected to join the streaming service’s catalog. For the former, that will happen in November, Netflix indicated in a post.

Netflix is licensing with other companies for TV series and movies as well. 

"In one way or another, we’re in business with nearly every supplier, including our direct competitors," Sarandos said last week. "And I think that we bring a ton of value to them."

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Netflix previously had major success with licensing shows like "Friends" and "The Office," both of which have not been available on the platform in the U.S. for a few years. They gained many new fans while on the platform. 

In the third quarter, the streaming giant counted a total of 247.15 million subscribers around the world. Of those, roughly 77.32 million were located in the U.S. and Canada.