Netflix is in crisis, the number of subscribers has fallen for the first time in ten years. The streaming top dog is said to want to introduce not only advertising subscription models, but also live streams in the future. It may increase revenue, but it also destroys the Netflix DNA. A comment by Anna Schmid.
Not long ago, when you searched for the word “Netflix” on Google, it was mainly new series, films or features that appeared. In the meantime the tide has turned. In addition to new film and series titles, results such as “Why Netflix is in crisis” or “Does Netflix dare to break the taboo?” on.
The reason: For the first time in ten years, the streaming top dog has lost subscribers. A total of 200,000 users migrated in the first three months of this year, as shown by the current quarterly figures. And Netflix expects even more people to leave the platform.
Against this background, it is not surprising that the group is working on alternative financing options. Not only is there soon to be an advertising subscription model that will allow users to stream more cheaply – provided they are willing to watch commercials. Netflix is also considering the introduction of live formats, as reported by the industry portal “Deadline”.
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With live streams, Netflix would dilute its DNA
The streaming giant could therefore soon broadcast competitions or casting shows à la “Celebrity Big Brother”, in which viewers have to vote live. And soccer games or Formula 1 races may also be available on Netflix in the future. According to “Deadline”, the idea is still in its infancy.
Luckily, one almost has to say. Because if the streaming service were to introduce live streams, it would severely dilute the Netflix DNA. Because casting shows, in which the viewers decide live on the progress of individual candidates, are actually a television thing.
In addition, Netflix has built a reputation as a platform for high-quality original productions. “Squid Game”, “House of Cards” or “Stranger Things” are just a few of the expensive, elaborately produced originals that fans appreciate about the streaming giant. For some viewers, football broadcasts or live casting shows may not quite fit into this portfolio.
There are also losses elsewhere. So far there has been no time pressure on Netflix – nobody has to turn on on time to be able to see their favorite show. With live formats, the watch-when-you-want image would be a thing of the past.
There is also an opportunity for Netflix in live formats
But even if live formats have many disadvantages. Netflix is in crisis and has to reinvent itself – at least in part. It is not without reason that 200,000 users turned their backs on the streaming giant in the first quarter of 2022.
For one thing, inflation is forcing many people to save. On the other hand, the competition in the streaming sector has grown, just think of services like Amazon Prime Video, Disney Plus, Sky or Apple TV Plus. Competitors such as Amazon Prime Video or Apple TV Plus already offer live streams and show that they can be an attractive line of business.
The content that Netflix offers is also important for retaining existing subscribers and preventing further migration. Their quality is currently high without a doubt. But will it stay like this? It is becoming increasingly common to read that the climate at Netflix has changed.
“It’s become a lot more business, and it’s less about the artistic side,” Marta Kauffman, creator of the Netflix series Grace and Frankie, said recently in an interview with NPR. In the meantime, important creative personalities such as Cindy Holland have left the company. Live streams could fill gaps in content.
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Netflix is changing – but maybe not for the better
One thing is clear: Netflix is changing. Perhaps in a few months it will be normal to watch films and series with commercial breaks and to have a say in live broadcasts as to which candidate advances in a round. Maybe that will go down well with users.
But it would be another, any Netflix. For some subscribers, such an image change might be enough to do what hurts the streaming giant the most: cancel their subscription and look elsewhere.