Parrot Analytics revealed plans to launch its Content Valuation system to creators, talent, producers, content investors, agencies, studios, distributors, networks, streaming services, brands and advertisers. “In an increasingly streaming-focused world, viewership alone doesn’t translate into direct growth or subscribers. Capturing consumer demand through a more comprehensive set of signals of intent is the most effective approach to determine what's valuable and what's not,” said Parrot Analytics Vice President of Applied Analytics, Alejandro Rojas. “What does audience demand tell executives about their overall product, why are people subscribing to a streaming service, who is at high risk of churn, how and when do you intervene to impact the number of customers subscribing month after month.”
Parrot Analytics’ new Content Valuation measurement system recently recorded data suggesting "Squid Game's" potential to become Netflix’s most valuable title if its success continues. The projections comes one year after the title's globally successful launch, which garnered $2 billion to Netflix through 2027. The data, included in the attached executive summary, also reveals original hits like Squid Game and Stranger Things can drive significantly higher ROI for major SVODs than big budget original movies or nine figure licensed series. Parrot Analytics’ Content Valuation measurement system can determine the value of any title for any distribution service by measuring its historic and forward-looking impact on user acquisition and retention for that service, within each market.
“The entire industry is grappling with key questions right now about the future of content, and we’re excited to roll out an empirical solution to help the media and entertainment industry make sense of today’s attention economy,” Parrot Analytics CEO Wared Seger said. “Content Valuation will help global entertainment leaders help sort through the uncertainty facing the industry — determining whether or not to acquire or produce a title, where it should be released and whether to go theatrical or not, the overall value contribution of a title to an existing library, the value of an entire library, determining projected value across multiple seasons for a TV show or the value of a film to a streamer five years after the fact, just to name a few.”
The system is said to measure the actual revenue contribution of any title to any platform in each market, and what percentage of that revenue was derived from adding new subscribers or retaining existing subscribers in that market, the forward-looking revenue potential for new productions, new seasons, and library titles to any platform in each market. It will also develop model scenarios suggesting the best distribution platform for any title to maximize its value, Measure whether a movie would perform better theatrically or direct-to-streaming, and Measure the value contribution of talent to each title in each market.
Adoption of the Parrot Analytics Content Valuation system will impact every step of the global content creation pipeline, helping to level the playing field between all stakeholders in the industry. "What Parrot is helping me to do is not just to monetize, you're helping to impact the way people feel,” Producer Caryn Mandabach said. “We have learned from working with Parrot that what connects us is more than what divides us. When I learned where it's popular, and who you know, which cohort, it really made me think. It's powerful."
In an increasingly streaming-focused world, viewership alone doesn’t translate into direct growth or subscribers. Capturing consumer demand through a more comprehensive set of signals of intent is the most effective approach to determine what's valuable and what's not. What does audience demand tell executives about their overall product, why are people subscribing to a streaming service, who is at high risk of churn, how and when do you intervene to impact the number of customers subscribing month after month.” Alejandro Rojas Vice President of Applied Analytics, Parrot Analytics