Netflix Viewing Stats Reveal That All Shows Aren't Created Equally

Very little has been known about Netflix, Inc. NFLX viewers' habits as the company has been tight-lipped about its viewing data. The streaming service has kept show ratings under wraps saying that the firm's lack of reliance on advertisers makes such data irrelevant.

However, measurement company Nielsen has been upping its efforts to track online viewing through services like Netflix and Hulu in order to give markets a better idea of how particular shows are performing.

Why Does It Matter?

Data showing whether or not Netflix's shows are performing well may not be needed to impress advertisers, but shareholders are likely to embrace it. Netflix has been pouring money into developing its own original content, and smash hits like "Orange is the New Black" and "House of Cards" have given the firm bragging rights and attracted interested investors. Many believe that Netflix's efforts to develop its own series will shift the way that new content is made. Instead of peddling their ideas to big networks like NBC Universal, writers will likely give streaming services first dibs.

Related Link: Netflix Could Be Turning Into A Victim Of Its Own Success

Data Incomplete

However, Netflix says the Nielsen data is virtually worthless as it fails to capture a full picture of Netflix users' viewing habits. For one, the figures won't include mobile views on devices like tablets or smartphones, something the company said will significantly skew the numbers. The data also doesn't take into account Netflix users' ability to binge watch, or watch large chunks of one series at a time.

How To Hook A Viewer

This week, Netflix released its own data showing how its viewers get hooked on particular series. The firm was able to track how many episodes it took for users to decide to continue or give up on shows. For some shows, like "Breaking Bad" and "The Walking Dead", it took just two episodes for users to get on board. For others like "How I Met Your Mother", it took four episodes to get a viewer to commit.

The company said that its own data, which includes metrics like the popularity of particular actors or topics helps determine where Netflix will spend its money. TV viewers are overwhelmed by a barrage of new shows each year, making it difficult for streaming services to decide which are worth buying rights to.