Netflix Inc. NFLX co-CEO Ted Sarandos doesn't see YouTube, TikTok or Reels as competitors but thinks people use the platforms to express their fandoms.
What Happened: During the Global TMT conference, Sarandos said that Netflix doesn't see ByteDance-owned TikTok, Google's YouTube and Instagram's Reels as threats.
He said people actually use these social media platforms to express their fandoms, which grows their affinity for content on Netflix. Sarandos cited TikTok as an example. He said when people spend time on TikTok "what that really does is that they actually use TikTok to express their fandom, which actually grows their affinity for content on Netflix."
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According to Sarandos, the excitement shown by users on TikTok and other social media platforms helped Wednesday — a comedy horror show on Netflix — grow tremendously. "The way people got excited about Wednesday early on and started talking about it, they started posting music videos. They started making their own content based on their excitement about how much they love Wednesday," he said.
Netflix's co-CEO admits that these social media platforms are incredible marketing routes.
Why It's Important: Last week, it was reported that following Netflix's footsteps, TikTok decided to enter the gaming market.
In October, research from Omdia highlighted that TikTok had replaced Netflix to become the second most popular service in the U.S.
"For broadcasters, commercial or otherwise, keen to engage younger viewers, the increasing importance of TikTok to reach and grow new audiences should not be understated," Maria Rua Aguete, Omdia's senior director, stated then.
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