Streaming service announces major upheaval
Things have always been going smoothly at Netflix for years. As the absolute world market leader, the streaming service had no worries. But now it looks very different. For the first time, Netflix had to complain about a minus in subscribers, and the share then plummeted. But one has obviously drawn the right conclusions and now wants to focus on quality.
Netflix suffered severely on the stock exchange, the share price lost 35 percent in value within a day. The streaming service had previously announced that it had lost users quarter-on-quarter for the first time in a decade. What is a bitter pill for the boardroom and many investors should for the subscribers who are still there, but a real plus will.
Class before mass: Netflix wants to change
Because Netflix apparently drew the right conclusions after users voted with their feet. As the Wall Street Journal reports, the era of carefree spending is over. Netflix is tightening its belt and invest less money in new content than in previous years. But why is this good news for viewers?
According to insider information, the streaming service rely on an ancient principle of success: Quality before quantity. Instead of throwing out more than 500 in-house productions in 2021, as was the case recently – practically without considering the costs and more with a view to aggressive growth than to the content – people now want to be more selective.
On the one hand, it’s frugal. On the other hand, it should above all provide better series, films and shows, with which you then want to convince the viewers again.
You will not stop investing money. But you want to take a closer look to see if it’s worth it. As a result, one expects, for example, to produce content less for mass taste, but instead for specific, albeit smaller target groups. Every series and every film should become more profitable. The selection is only one of the planned steps.
The latest additions to Netflix – the list could be shorter in the future:
Disadvantage for underdogs: Netflix wants to sort out unprofitable series faster
While more quality as a goal can become an advantage for viewers, there is also a potential downside to Netflix’s realignment: content that doesn’t perform quickly and well will also be quickly pulped in the future. So it can happen that your new favorite series has disappeared faster than some fans would like. We’re excited to see how Netflix’s plans translate to what’s on offer.
