Most people in the United States should have heard of Nielsen Holdings at some point in their lives, though they may or may not have the best understanding of what its operations entail. For those who are unfamiliar with the name, Nielsen specializes in the collection of information about who is consuming what kinds of media in which manner, whether said media consists of TV shows, radio shows, movies, or even newspapers. As a result, Nielsen is an invaluable source of market research for a wide range of clients, so much so that it is considered to be either the most important or one of the most important market research firms that can be found in the entire world.
Recently, it has been announced that Nielsen will start looking into who is watching what in which manner on streaming services. It plans to start with Netflix, but in time, it seems probable that it will be extending its efforts to other streaming services as well. This is an important piece of news because this will have significant consequences for a wide range of entities that are connected to streaming services in some manner, no matter how indirect the relationship might be.
Why Is This So Important?
Different parties have different reasons for wanting to see the numbers on content consumption for Netflix users. For example, companies that have content on Netflix might be interested in seeing those numbers because they want a better idea of how their programming is doing. They should have access to that information from Netflix, but in business, being able to consult a neutral source such as Nielsen provides them with increased confidence that what they are seeing is real. Something that matters because accurate information is one of the critical components for ensuring accurate decision-making.
Meanwhile, competitors of Netflix might be interested in seeing who is watching what in which manner because that information will empower them to make better choices about how to maintain their own positions. After all, if competitors don’t know how the viewers are reacting to Netflix’s choices, they can’t make the appropriate counter-strategies save by guessing at what is happening, which is a sub-optimal approach to say the least. It should be mentioned that the competitors of Netflix would include not just other streaming services but also TV channels as well as other providers of traditional media that are being impacted by the rise of streaming services, meaning that the term encompasses a much wider range of entities than it might seem on initial inspection.
On a semi-related note, it should be mentioned that advertisers have a strong interest in seeing how viewers are reacting to Netflix and other streaming services as well. Yes, Netflix does not have commercials for its content, meaning that advertisers have no direct relationship with the streaming service. However, it should be obvious that a lot of advertisers have been using TV channels and other providers of traditional media to deliver their intended messages to a wide range of viewers. As a result, as streaming services impact the viewerships of TV channels and other providers of traditional media, information about their consumption choices could help advertisers adjust to new realities.
Summed up, Nielsen’s new involvement in measuring not just Netflix but also other streaming services promises to provide a fascinating look at not just their internal performances but also their impact on media as a whole. Something that should interest those with even a casual interest in how we consume our content.
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