In 2015, Netflix released the entire first season of Stranger Things at once. The series, which follows a group of teenagers as they investigate the supernatural disappearance of their friend, was met with critical acclaim and has since amassed an impressive following of loyal fans.
Four years later, Disney entered the streaming wars with The Mandalorian, a spin-off TV show of the uber popular Star Wars franchise. The series enjoyed a similarly positive reception to Stranger Things, but they used a different release strategy. Instead of making the entire first season available at once, Disney chose to release new episodes weekly.
To some degree, both shows are similar. They’re both big-budget science fiction fantasy series released exclusively online. So why did Netflix opt for a simultaneous release strategy and Disney did not?
It’s difficult to say for sure without asking the people involved. But research by Setareh Farajollahzadeh, Assistant Professor of Operations Management at the Desautels Faculty of Management, sheds some light on the matter.
“Depending on the audience, the authors or producers have to make a decision about which release and pricing strategies would be most beneficial,” she said.
The release strategy and pricing shape the way people learn about the product and whether they choose to consume it.
A sequential strategy, where episodes are released once a week, is a good way to create consistent buzz about your show, she explained. Each new installment generates a conversation among audiences, which creates more opportunities for them to spread the word and generate new fans.
But this strategy’s greatest asset is also its biggest risk: it opens the door to excessive negative criticism. Audiences might dislike the first entry of a show and voice their displeasure online, or critics may write a piece discouraging future viewers from ever engaging with the product. Repeat this every week, and you have a recipe for diminishing audiences and, eventually, a cancelled show.
New and innovative shows will experience this risk more strongly, said Farajollahzadeh. These productions may require more time to catch their stride and find their audience. Consistent negative criticism can interfere with that, discouraging others from forming their own opinions about the product.
Simultaneous release, on the other hand, allows producers to mitigate some of this risk. They release their whole show at once, so audiences can binge watch it right away. In this model, there’s less opportunity for unhappy viewers to negatively affect public opinion about the show. They watch it at release, talk about it for a while, then move on. The downside, however, is that any positive responses from viewers will likely be short-lived.
To a degree, The Mandalorian’s sequential release strategy speaks to Disney’s confidence in the Star Wars franchise. In releasing new episodes weekly, they trusted that the loyalty of Star Wars fans would translate to consistently high viewership.
Stranger Things, on the other hand, was an unknown quantity at the time. Netflix wasn’t sure how people would react. To hedge their bets, it would seem, they released the whole season at once, limiting the amount of negative attention it could receive as fans became acquainted with the show.
Not seen on tv
These kinds of release strategies play out in other cultural industries, too; books, comic books, art, music, and other types of content face similar dilemmas, explained Farajollahzadeh.
In 2015, the publishers of Go Set a Watchman – the sequel to the iconic Harper Lee novel To Kill a Mockingbird – were unsure how the book would be received. And expectations were high. To Kill a Mockingbird is a cornerstone of American literature and continues to be one of the most-assigned novels in American schools.
The publishers could have chosen to release the book in the United States first and international markets later, allowing the book’s American reception to influence sales in other countries, said Farajollahzadeh. But they chose to pre-ship copies around the world. On the official release date, buyers could purchase the book at the same time globally.
This was a careful calculation, explained Farajollahzadeh. Releasing everywhere at once allowed them to capitalize on the hype while hedging against potential negative reviews. Readers paid full price before fully knowing what to expect. Had the publishers adopted a staggered release strategy, sales in other countries may not have been as strong.
Platforming independent creators
Major TV shows and book launches can benefit or suffer under the weight of their reputation. But what about independent, up-and-coming creators?
Hosting platforms have a big effect on how audiences interpret independent content. Their pricing structures and feedback functions can shape opinions about a creation and influence creators’ abilities to earn revenue on their work.
Some platforms, for example, allow book authors to release individual chapters on a weekly basis and charge for each new installment. These platforms might also place comment sections and upvote/downvote buttons next to each chapter.
Comment sections and ratings can help consumers avoid spending time on a book they won’t enjoy. However, when it comes to creative and niche content, people can have varied opinions, and it’s easy to be influenced by others before engaging with the content independently.
Farajollahzadeh said platforms should encourage consumers to engage with content on their own by temporarily hiding any ratings or comments. This way, the author, who spent many hours creating the content, can build their fan base before any criticisms affect sales. This in turn can help them find an audience whose taste matches their own.
To learn more about sequential and simultaneous release strategies, read Professor Farajollahzadeh’s paper.
McGill Delve is the official thought leadership platform of McGill University’s Desautels Faculty of Management. Subscribe to the McGill Delve podcast on all major podcast platforms, including Apple podcasts and Spotify, and follow Delve on LinkedIn, Facebook, Twitter, Instagram, and YouTube.
Setareh Farajollahzadeh
Article by Eric Dicaire
Based on the research paper Simultaneous vs. Sequential Product Release by H. Abdolanezhad, Ningyuan Chen, Setareh Farajollahzadeh, Ming Hu.