As Netflix’s stock continues to fall, the streamer is making some radical changes to keep the investors happy and retain its constantly shrinking subscriber base. CEO Reed Hastings has already made the shift toward lower-priced plans and introduced ads, something he promised Netflix would never do. But these are desperate times.
The next significant change that Netflix is considering is abandoning its binge-release model. Unlike Amazon Prime Video, HBO Max, and Disney+, Netflix drops the entirety of its original series at once, even the most prized IPs like Stranger Things, The Witcher, and Bridgerton. However, this model won’t last for long. As per Puck News, Hastings is contemplating a new release strategy. The outlet writes: "Hastings has seemed unwilling to pivot off the binge model because he hasn’t needed or wanted to. Now, it appears, he does."
Hastings’ distinguished vision for Netflix turned it into a $100 billion business, and it still remains the biggest streaming platform in the world, but its competitors are starting to catch up. HBO’s House of the Dragon and Amazon’s The Lord of the Rings: The Rings of Power are currently trending globally, while Netflix’s recent big-budget outing, The Sandman, is yet to be renewed for a second season. The Neil Gaiman adaptation has performed extremely well on Nielsen’s streaming charts but probably could have benefited more with a weekly episode premiere.
As seen in the case of the Disney+ and HBO Max originals, shows that air weekly keep social media abuzz for weeks and make for better fan engagement, though not that the likes of Stranger Things and Cobra Kai don’t. They have been blockbuster hits for Netflix as well, but the streamer can’t bank on them all the time.
Netflix experimented this year with Stranger Things season 4 and Ozark season 4, which debuted in two installments and trended throughout the summer. They are one of the most watched shows on Netflix and would have shattered the viewing records either way, but the gap between the episodes definitely helped, and the company can’t just turn away from a profitable business strategy.
Netflix Struggling to Retain Subscribers
Netflix used to be the leading streaming platform up until last year, when, in light of growing competition and frequent big-budget misfires, the company’s losses began racking up, and investors started panicking. Netflix’s ambitious plans to lure high-profile directors and greenlight any TV show or movie without a second thought could only be sustained for so long. Now, the streamer is laying off several employees every month and canceling fan-favorite shows like hot cakes.
Cowboy Bebop, Jupiter’s Legacy, Resident Evil, and multiple other mega-budget shows were axed by Netflix after just the first season. Not only does this irk the fans, but it also makes the talented creators wary of working with Netflix, which probably explains its rising mediocrity nowadays. All this frustrates the customers and the shareholders, who’ve even sued Netflix for misleading them about the dwindling revenue growth.
The Netflix ad-supported tier will roll out in 2023, but there is no word on the new release model. Netflix has also hiked prices and is planning to curb password sharing. Let’s see how the subscribers react to these changes.