During the streaming wars, the news of Netflix losing its first subscriber in a decade raised questions about what will happen to the next company and other market players.
HuffPost looked at Netflix’s response and spoke with industry experts to answer some of these questions.
Why did Netflix lose a subscriber?
Netflix, which is still the best player in the industry – at least for now – with nearly 222 million subscribers The decrease in subscribers was partly attributed to the Russian war in Ukraine as the company suspended services to Russia and gradually shutting down payment subscribers in Russia.
How is the company fighting?
In an effort to reduce losses, the company announced it would release a low -priced, ad -supported version of its service – a move long opposed by CEO Reed Hastings – and also block password sharing. The company estimates that 100 million households worldwide have access to free services.
“Netflix followers know that I’m a big fan of the complexity of advertising and the ease of subscription,” Hastings said. In the first quarter win the interview. “But as far as I’m concerned, I’m a big fan of customer choice. And allowing consumers who want lower prices and tolerant advertising to get what they want makes a lot of sense.
Hastings said the company hopes to add a plan over the next two years.
What is the challenge for Netflix in the future?
George Gays, a professor at the UCLA Anderson School of Management, said people in the industry said Netflix was a guaranteed win.
However, “Netflix has some difficulty figuring out how to add additional media to a traditional content stream,” Gays told HuffPost. “And it’s not going to be easy”.
He added that Netflix needs to see if the steps it has already announced, once entered into the game, are enough to bring the company back.
Another area where streaming services can expand is live sports. When asked if the company watches sports, Netflix co-CEO Ted Sarandos said he wasn’t sure of the direction, adding that the offer would significantly contribute to the company’s bottom line.
“I’m not saying we’re not going to get involved in the sport, but we need to find a way to increase the flow of big profits and with it the flow of big profits,” Sarandos said of the win.
Instead, the company focuses on “sports -related programming” such as “Formula 1: Travel to Survival” and other sports documentaries.
The gays also said Netflix will need to overcome the recession seen by many U.S. markets and be more disciplined when it comes to spending.
“Somehow it needs to get a must-have program on a regular basis if it’s going to stop this delay, and somehow it needs to do it so that it doesn’t spend $ 20 billion a year on programming costs, “said Gays.
However, Gays warn that Netflix is in existential danger.
“I think Netflix is fighting right now for its life, especially its precious life,” he said. “It’s a really serious battle.”
What does this mean for other streaming services?
Asked if other companies with streaming offerings on Netflix News should worry, Jim Millio, an executive producer who has worked in the film and television industry for 40 years, said, “It depends on whether how different they are. “
“When you watch Netflix, it’s really a streamer,” Millio told HuffPost. “They don’t diversify. They were not bought by another company. “They really don’t have to go back despite the subscriber base.”
This means that companies like Disney, Amazon, and Apple, with businesses other than their streaming platform, may be in a better position.
“I think the main lesson here is that streaming isn’t everything and it’s the latest,” Gays said.
“Streaming is an intriguing market, but it won’t keep any company afloat,” he continued.
What awaits the next streaming industry?
As users, we have many choices when it comes to streaming platforms. Millio doesn’t think everyone will survive.
“Some fail, some merge, others buy. “Some, like Quibi, will lose business,” Millio said.
Quibi, a streaming service designed to offer short videos on smartphones, closed six months after launch, despite revenue of $ 1.75 billion.
CNN +, a subscription service that launched in late March, confirmed on Thursday that it will close on April 30. CNN’s former parent company Warner Media partnered with Discovery in the weeks before the service, which reportedly at 150,000. To subscribers. David Zaslaz, the newly formed Warner Bros., said. CEO of Discovery, who he wants to have all the company’s brands. Under a streaming service, it annoyed Ed that CNN + launched shortly before the merger, According to Variety.
Source: Huffpost
