As Netflix begins to roll out its new ad-supported tier, the company is vowing to work with third-party measurement and verification companies. This move could help Netflix not only better understand its audience, but also pave the way for future changes to its business model.

It’s no secret that advertising requires a different set of skills than producing quality content. And while Netflix has always been good at the latter, the streaming giant has admittedly been late to the game when it comes to ads. That’s why partnering with companies like Nielsen and BARB is so important. By working with these third-party measurement firms, Netflix can glean valuable insights into who’s watching its content and how best to reach them.

And while some may see this as a potential drawback—after all, Netflix has always been tight-lipped about its viewership numbers—it could actually be a boon for the company in the long run. After all, if Netflix wants to continue to grow its business, it will need to find new ways to monetize its vast audience. And by working with third-party measurement firms, Netflix is laying the groundwork for doing just that.

Why Measurement Matters
In today’s hyper-competitive streaming landscape, it’s more important than ever for content providers to have a clear understanding of their audiences. After all, without that data, it’s impossible to tell if your content is resonating with viewers or if your marketing efforts are reaching the right people. And that’s where measurement comes in.

By working with firms like Nielsen and BARB, Netflix will be able to get a better handle on things like who’s watching its content, when they’re watching it, and what they’re watching it on. This data will not only help Netflix better understand its audience but also make more informed decisions about everything from what content to produce to how best to market it. In other words, measurement is incredibly important for any company that wants to stay ahead of the curve in today’s Streaming Wars.

As Netflix moves forward with its new ad-supported tier, the company’s decision to partner with third-party measurement firms could prove invaluable. Not only will this data help Netflix better understand its audience, but it could also pave the way for future changes to its business model. In today’s competitive streaming landscape, that type of insight is more important than ever.

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