Netflix continues to be the most popular streaming video-on-demand platform (call it VOD, call it OTT … call it what you like), but even as it continues to grow and attract new subscribers, it is seeing its piece of the pie shrink because of competition, appearance of new services and improvement of those that were already present. Will Netflix bear the pressure? For how long?
The bottom line is that the offer is soaring to unsuspected limits and the pocket is not enough. Having arrived first and having decidedly opted for the original content has boosted and maintains Netflix as the spearhead of the sector, however, all the big companies are doing the same and with more sense: they do not produce as much, which means that neither they spend so much, but precisely for that reason they sharpen more.
With a bit of derision, Netflix is usually called ‘the churros factory’, and the fact is that diversification does not serve as an excuse when the bulk of what you produce is at best mediocre. Of course, Netflix also releases very good material, but when you review the best of the year, you realize that at the most it has placed two or three movies and as many series among the highlights … and that the competition has done the same. own, with the exception for the moment of the movies.
This is a double problem for Netflix: first, because the average consumer, the one who is guided by media punches, will want to see The Witcher, Stranger Things, The Paper House and a few more, but You’ll also want to see Chernobyl, Westworld, The Boys, The Mandalorian… And, again, the pocket is not enough, unless one is jumping from one service to another like a bee from flower to flower.
In other words, there is plenty of content and although one may end up seeing more subtle things, the hits are those that drag users from one service to another and these occur on all platforms. Then Netflix’s strategy of producing contents in piles, many of which may end – if they don’t already – being irrelevant even to the target audience they are directed to because time is finite and you have to choose, it plays against their interests.
Ergo, Netflix spends a fortune to produce tons of content that for the most part pass without penalty or glory, people sign up and unsubscribe depending on whether this or that premieres here or there, the growth of the company stagnates, the income they do not give to cover the investments … I am not saying that this is happening, but that it can happen, and a small sample of it are the latest increases in the subscription price, the most expensive among the great video on demand services.
So the first problem is the competition and the second is the need for Netflix to continue growing, and the competition is not going to make it easy for him: so soon, Amazon Prime Video prepares the series of The Lord of the Rings, HBO a from The Last of Us, Disney + various Star Wars and Marvel superheroes… It will be very difficult for the masses to resist these types of releases, and even more difficult for them to maintain their subscriptions constantly on all these platforms.
Not to mention a significant fact: Netflix plays solo. Competition no: Disney is the entertainment giant; HBO is owned by WarnerMedia, which in turn is owned by AT&T, the world’s largest telecommunications company; Amazon Prime Video is a service with which to make the subscription to Amazon Prime more attractive, but as important as the retail portal is, the company has its great business in Internet services for companies and professionals. Let’s not say Apple anymore.
Given the seen, it should be repeated, will Netflix hold what is coming? For how long? Will it end up being absorbed by some giant?