Netflix, Data, Drunkard’s and Adam Sandler

There has been much discussion about Netflix’ recent announcement signing Adam Sandler for an exclusive four movie deal to be premiered on Netflix. It has also generated talk of the beginning of the end of the traditional Hollywood studio model as well as praise for Netflix use of data to make a content investment decision; albeit, this particular decision has left many people scratching their heads.

Let’s start with the fact that it has been a while since Mr. Sandler made a commercially successful or comedically substantive film; while Grown Ups fared better, he did not carry that movie. If you ask people to name their favourite Adam Sandler movie, most say Wedding Singer and movie buffs will add Punch-Drunk Love. His last few films, ‘That’s My Boy’ and ‘Blended’ have been critically panned and box office duds. In fact, the last movie, Blended, might have had a longer advertising campaign preceding the release, than the actual run it had in theaters!

On the lack of critical and commercial success, Netflix’s content chief has a data counterpoint: “Very uniquely, he stands out for his global appeal to Netflix subscribers. Even movies that were soft in the U.S. [theatrically] outperformed dramatically on Netflix in the U.S. and around the world.” (Source: Hollywood Reporter).

Don’t get me wrong, I love data and am a big advocate for using it to make better and more informed business decisions. However, I am also against over-reliance on data and using it without the benefit of judgement to accompany the decision-making process. My thinking is best explained by David Ogilvy who once exclaimed about the ad industry’s over-reliance on research – “I notice increasing reluctance on the part of marketing executives to use judgment; they are coming to rely too much on research, and they use it as a drunkard uses a lamp post for support, rather than for illumination.”

If one were to take a closer look at Netflix catalogue you will find that of the twelve highest rated comedy films, currently available in USA (as of October 2014); 2 are foreign (The Intoucahbles and Zindagi Na Milegi Dobara), 8 were made between 1953 and 1987 (Breakfast at Tiffany’s, Roman Holiday, Sabrina, The Graduate, Charade, White Christmas, MASH and Good Morning Vietnam), only 2 are from this century – Pirates of the Caribbean (2003) and Silver Linings Playbook (2012).

Additionally, their top comedy recommendations for me include ‘Maz Jobrani: I come in Peace’, ‘Tortilla Soup’ and ‘Welcome to Dongmakgol’; each movie gets 4.5 / 5; stars as personalised recommendations for me. No doubt you are also scratching your head and asking “Max who?” and what the %$%^*$%* a Dongmakgol and can it be eaten?

Then there is also the fact that Netflix continues to have a large selection of Mr. Sandler’s movies in both the US and abroad; “We had almost all of Adam’s movies in the first pay window in the U.S. Today, we continue to have those movies in the first pay window in Canada. And then, through various windows that follow the pay window all the way to the deep catalog, we’ve licensed Adam’s movies in all of our territories.” (Source: Hollywood Reporter). Considering these two data points one could surmise that Netflix has a pretty poor selection of comedy films in their library but a wide selection of Mr. Sandler’s movies.

If you are like most people, who sign-up for a monthly subscription service, you only feel you are getting value for your money if you are able to watch movies frequently. You start by looking for recent comedy films, finding none you tend to default to one with a recognisable actor. On both these counts your Netflix search will deliver an abundance of Mr. Sandler’s titles because of the limitation of their current comedy catalogue. I have no doubt that their viewing data is accurate, and many subscribers are watching Mr. Sandler’s films, even repeatedly; but if I were to add a dose of judgement I would also guess that this is has less to do with his popularity or the quality of the films, and all to do with the fact that there is really nothing else worthwhile to watch…

Then there was also the bizarre press release issued by Mr. Sandler saying he signed this deal because “Netflix rhymed with wet chicks.” Hopefully, this is not an early indication of the substance of each of the $40 million a film that Netflix is reportedly paying him. (Source: Reuters).

While I laud Netflix use of data (House of Cards is a brilliant case in point) and for continually breaking ground in entertainment and forcing studios and TV networks to think in a more customer-centric manner; I am not sure I agree with their choice of Mr. Sandler. I wonder if this is an instance of using data for illumination, rather than support; but either way it will be interesting to see who has the last laugh.