Gregory Peters, welcome to the set of Quotidien. Here is part of the team and here is the audience. Welcome to a traditional TV set for a live broadcast on the TNT on an old channel with a real audience here.
I imagine that everything I just said is very exotic for you.
Yeah, a little bit but not really.
So welcome, you are 56 years old, you are the co-CEO of Netflix with Ted Sarandos. You are in Paris for the agreement you signed with the TF1 group. We will talk about it in a moment. You have never done a talk show. So thank you for starting with France and thank you for starting with us.
And even in French.
Yes, in French. There. Yeah. I am very happy to be sitting with you tonight. Thank you.
And can I know where did you learn French?
Uh, I lived in Paris for 3 months when I was young.
3 months and you speak like that?
It's not... it's not good.
Okay. No but yes, you speak very well, you speak very well. But if there is a translation problem, we are here and then I think you have an earpiece just in case.
That's it. Okay. Thank you.
Do you find that Paris resembles what we see in Emily in Paris on Netflix?
Yes, it resembles a lot anyway. I recognize myself a bit but it's not really reality still. No, it's not really reality but still let's say it's a reflection of this culture, of everything that is magnificent here in Paris. What is good in Emily in Paris is that it attracted tourism precisely but even shopping, fashion, all that. So it shows the power of beautiful stories.
You watch all the series and all the episodes?
Emily in Paris or others, it would be impossible to follow everything, there are too many. But let's say I sample those I can watch. I do watch quite a bit of Netflix.
Why are there two CEOs at Netflix? You say it's the alliance of tech and creativity.
Yes, it reflects who we are as a group, meaning we bring together two very different worlds: the creativity that creates remarkable stories, and alongside it, the world of technology and product. By bringing together the best of both worlds, we have a particular power because it's quite exceptional to have this capability within the same group.
And you, you are more on the tech side, right?
Let's say yes, the product tech side, yes, that's rather my strength and my background.
So, the Netflix saga told in 2 minutes flat. 2 minutes flat, it's impossible but Paul will take up the challenge. If he forgets things, you tell us.
I will probably forget a lot of things. So, first Netflix, like any giant, it started from a simple idea. Before, when you wanted to watch a movie, you went to the video rental store on your street, you had to move, there wasn't much choice, and if you returned them late, you paid penalties. I've experienced that too, believe it or not. Anyway, it was an annoying experience. But in 1997, a young computer entrepreneur named Reed Hastings had an idea: a DVD-on-demand system for $20 a month. Americans could order as many DVDs as they wanted per day without late fees. DVDs are sent by mail in those famous red envelopes.
Go to netflix.com, make a list of the films you want to see, and in 24 hours, you'll receive the DVD. You keep it as long as you want, without paying penalties. And when you've finished watching everything, you take these prepaid envelopes, send back the DVDs to us, and we send you others. It's easy.
Netflix takes off and soon has about fifty warehouses full of DVDs all over the United States. A thriving but rudimentary business.
All DVDs are inspected to check for scratches, and after this handling, they are re-enveloped, ready to be sent.
DVDs will die as quickly as they appeared. No problem, Netflix always has a step ahead. 10 years after its launch, the company announces this.
The Netflix DVD rental service launches today a new subscription system to watch movies on their computer.
The industry is skeptical, many people don't believe it.
I am very skeptical about Netflix's ability to succeed in their transition to downloading.
Yet, the bet is brilliant and the boss is sure of himself.
Yahoo, Apple, Amazon, all these separate companies, they do books, music. We will be the only company that will focus solely on films.
This is the beginning of the Netflix we know today, an online platform that quickly won't just stream movies and series, but will also produce its own, starting with House of Cards in 2013.
Netflix now creates its own content. They have already produced House of Cards with Kevin Spacey, partly thanks to an algorithm that understands what people really want to watch.
And what I find deliciously ironic in Netflix's story is that one year after its launch, in 1998, Amazon's boss, Jeff Bezos, immediately spotted the genius and tried to buy you. He offers $15 million. It's a pittance, but the founders refuse. And today, you have become competitors of Amazon Prime, meaning Jeff Bezos, the man who wanted to buy you. Bravo!
In 2 minutes, that went well.
If you had to summarize the Netflix recipe in one formula, what would it be?
I would say that essentially we constantly try to provide the best possible experience for our subscribers. First the customer, but thanks to technology and creativity, we provide them with the best entertainment possible. I believe that's very simple, but it's a simple concept.
What is your main competition? I tell you YouTube, Disney, Disney Plus, HBO, sleep.
Well, there are many, everything you mentioned for sure, but YouTube is certain, but also social media, gaming, and ultimately everything that can be done around entertainment. And today, I believe we are in an extremely competitive environment. There are many competitors, that's for sure.
Television like the one we are doing is not your competitor?
In a very general way, yes, still. But the good news is that from tonight and tomorrow, Netflix subscribers in France will be able to watch Quotidien.
Tell us what will happen from tonight on Netflix France.
Well, one of the reasons I am here in France is to announce this partnership with TF1, through which we will bring all of TF1's offerings to the Netflix app. So subscribers, if they want entertainment, can see all sorts of things including Quotidien. So they will be able to see that.
So like that, we can go see TF1, TMC, TF1 Plus, all TF1 channels live.
Exactly. Exactly. And what we have done is try to create a special place, a special location for TF1 within the Netflix offer. You have live channels, sports, Quotidien training, also on demand, but all this is inside the Netflix offer and available for all subscribers.
And will we be able to watch in Kentucky or is it just in France?
So indeed, it will be available for subscribers in France. Yes, still, we could extend this partnership beyond what we've done. It's like what we've done in the past, by the way. And telling French stories to the whole world is part of our mission.
And who needs who the most? Is it TF1 that needs Netflix or Netflix that needs TF1 or the experience we will have from tonight?
Yes. I would say that in any relationship, there must be a mutual bond and it is important to rely on each other, and it's important to see how the product we offer supports TF1 and how TF1 supports our subscribers too.
So this is a world first.
A world first indeed, it has never been done in any other country.
No, not only has it never been done, but I also don't think it can be compared to anything else because it's really a completely integrated model. It exists nowhere else. So this is the very first time it happens, and it's in France.
Will you do it in other countries?
In Germany with ZDF or the BBC, we'll see. It's possible. What we like to do is leave the choice to the consumer. We'll rely on this experience, and if other opportunities arise, why not?
Is television dying or is it becoming a streaming service like another, like it's coming to?
Listen, no, I think not quickly. Maybe let's say there is a transformation in how the audience expects to be entertained, what they expect from what they see on screen, and what we bring is some of what we've learned, so technology, recommendations, all that. We bring all that into the experience so that TF1's programming, which works well, you know, ensures that it reaches a large audience.
We are going to look at Netflix's iconic series displayed here behind me. Your investment in programs will be $20 billion next year. I said $20 billion. So that's about $50 million per day. When you have that much money, you become the main global cultural power. How do you manage that?
Once again, it's linked to the fact that we provide entertainment to a large number of subscribers, and we can do it because there is value found by our subscribers, but each time the subscriber decides if they will continue, if they will renew their subscription. So we invest to ensure they stay with us through the stories that we hope to tell in an interesting way, but worldwide. So like Lupin, for example, which was created here in France, we find a global audience.
And you see what I mean about the responsibility you have, the responsibility it gives.
Yes, we feel this responsibility, but it is towards our subscribers. Are we meeting their expectations? They trust us, they pay their subscription, and our role is to ensure that translates into beautiful stories that we bring to them on Netflix.
The algorithm, does it reveal the viewer's taste or does it manufacture the viewer's taste? In which direction does it go?
