As Netflix shares continue to slide, the streamer is making some sweeping changes to keep investors happy and retain its ever-shrinking subscriber base. CEO Reed Hastings has already made the switch to lower-priced plans and introduced ads, something he promised Netflix would never do. But these are desperate times.
The next significant change Netflix is considering is ditching its compulsive posting model. Unlike Amazon Prime Video, HBO Max, and Disney+, Netflix releases all of its original series at once, even prized IPs like Stranger Things, The Witcher, Y Bridgerton. However, this model will not last long. According to Puck News, Hastings is contemplating a new launch strategy. The outlet writes: “Hastings seemed unwilling to abandon the binge model because he didn’t need or want it. Now, it seems he does.”
Hastings’ distinguished vision for Netflix turned it into a $100 billion business, and it’s still the world’s largest streaming platform, but its competitors are starting to catch up. HBO house of the dragon and the one from amazon The Lord of the Rings: The Rings of Power are currently trending globally, while Netflix’s recent big-budget exit, The Sandman, It has not yet been renewed for a second season. Neil Gaiman’s adaptation has performed extremely well on the Nielsen streaming charts, but could probably have benefited more from premiering a weekly episode.
As seen in the case of Disney+ and HBO Max originals, shows that air weekly keep social media active for weeks and improve fan engagement, though not as much. Strange things Y cobra kai No. They’ve also been blockbusters for Netflix, but the streamer can’t count on them all the time.
Netflix experimented this year with Strange things season 4 and Ozarks Season 4, which debuted in two installments and trended throughout the summer. They’re one of the most-watched shows on Netflix and would have broken viewing records either way, but the gap between episodes definitely helped, and the company can’t just walk away from a profitable business strategy.
Netflix struggles to retain subscribers
Netflix used to be the leading streaming platform until last year, when, in light of growing competition and frequent big-budget flops, the company’s losses began to pile up and investors began to panic. Netflix’s ambitious plans to lure in high-profile directors and greenlight any TV show or movie without a second thought could only hold for so long. Now, the streamer is laying off multiple employees each month and canceling fan-favorite shows like hotcakes.
Cowboy Bebop, The Jupiter Legacy, demonic resident, and many other big-budget shows were pulled by Netflix after just the first season. Not only does this irritate fans, but it also makes talented creators wary of working with Netflix, which likely explains their growing mediocrity today. All of this frustrates customers and shareholders, who have even sued Netflix for misleading them about declining revenue growth.
Netflix’s ad-supported tier will roll out in 2023, but there’s no word on the new release model. Netflix has also raised prices and plans to curb password sharing. Let’s see how subscribers react to these changes.