Falling subscriber numbers have been a wake-up call for Netflix, but the platform must avoid making decisions that might be justified solely by fear of being overtaken by the competition.
Despite the appearance of countless movie and series streaming services trying to compete for its leadership, Netflix has managed to remain the first benchmark in the sector. However, everything seems to have been turned upside down after the loss of 200,000 subscribers in the first quarter of 2022. Worse still, the estimates for the second quarter are even more worrying, we are talking about 2 million fewer subscribers.
Attack on different fronts
Netflix seems to have released a contingency plan that attacks different fronts. On the economic level, the American company has chosen to finance less original content in quantity, but of better quality. Investment is increasing, but Netflix wants to be more selective with projects.
In addition, Netflix announced the launch of a cheaper subscription that will include ads, which you don’t like at all, and the streaming platform has started exploring the possibility of entering the world of event broadcasts. live. They also increased subscription prices. Plus, they want to tackle account sharing. While Netflix has long been in favor of this practice, now the service is turning around and starting to tighten the screw.
Internally, Netflix released a note on its corporate culture — the first to be released in five years — explaining that “sIf you’re struggling to support the breadth of our content, Netflix may not be the best place for you. In other words, if you don’t like Netflix, just leave. There was also a less noticeable injunction: “Spend our members’ money wisely.“.
Finally, Netflix began a shift towards the video game industry, which seems not to have helped it to stay focused. Its games for iOS and Android did not arouse the passion of the crowds. Netflix persists, they plan to release 50 new games.
It is clear that the company of Reed Hastings seems to have emerged from its lethargy. However, this seems to be actions carried out much more out of obligation than conviction.
Don’t overdo it
There have been many attempts to explain Netflix’s real problems that have led to its declining subscribers. We are obviously talking about rising prices, a lack of proprietary content, uneven quality in content and increased competition.
Netflix’s worst mistake today would be to overdo it in its attempt to make up for past mistakes or oversights. If the company rushes to make strategic decisions, it risks wading through water and its relationship with users will suffer even more.
Better promote what Netflix produces
In our opinion, the real problem with the service that affects it more than its competitors is its limited marketing reach.
Netflix aims to try to reproduce the full range of content on screen, for everyone, prestige films, but also very specific small series or comedies. Netflix’s competitors also offer a huge range of content with equally varying levels of quality, but they do so through a number of different channels and platforms, which helps to differentiate the brands.
On Netflix, on the other hand, everything is mixed up, especially in sections like the Top 10. This gives customers the impression that Netflix has no real quality standards or consistent vision.
Another criticism, the streaming service generally only advertises its main content in the short term, which does not allow to apprehend new seasons or upcoming films. Although Netflix’s binge model has contributed to its success, this way of doing things prevents their series and movies from building hype over several weeks.
As a result, most content is forgotten a few weeks after release. Instead of conventional marketing, Netflix uses its algorithm with new content on its homepage, but little is done to entice viewers outside the Netflix ecosystem to subscribe or open. ‘application.
In order to reverse its decline, Netflix needs to better deliver its best content. This could involve creating differentiated sub-brands that viewers could identify with. The streaming service’s most important job isn’t to create more or better content, but to better promote what it already has.
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