Netflix (nflx) – Get a free report enjoyed a huge first-mover advantage in the streaming space. First, he was the only player licensing archival content at a time when few rights holders fully understood its value. That gave the company early access to hit movies and TV shows at low prices because no one else was really bidding.
The streaming giant also had the advantage of being the first digital player to go original. That gave him an advantage in recruiting talent and creating attention-grabbing shows.
Those advantages allowed Netflix to amass an estimated 224 million subscribers worldwide, but the company has largely squandered its advantages, allowing Walt Disney (DIS) – Get a free report become a major rival while opening the door to Amazon (AMZN) – Get a free report become a player in the prestige game.
Not that Netflix could have stopped Disney from succeeding. The Mouse House simply has too much good content for it to fail, but the current leader has made plenty of bad moves since the launch of Disney+.
Now, Netflix needs to make some big changes or it will move in the wrong direction when it comes to subscribers. The company can right its ship, but doing so will require making some tough decisions that the company has so far been unwilling to make.
Netflix needs to make better content and be a prestigious player
Every show Disney does has a clear audience and a logical business plan. The Mouse House knows that “Ms. Marvel” won’t reach the same audience as “The Falcon and the Winter Soldier,” but understands that the smaller show helps the company attract the young adults who fuel its future business.
Amazon doesn’t have the intellectual property (IP) muscle of Disney, but it has been very careful to license big names and make its shows feel like highly regarded works. The company made a big splash with its “Rings of Power” series and acquired MGM’s catalog giving it the James Bond rights, as well as some hit TV shows (as well as other archival content).
Netflix started out as a prestige play where most of its releases seemed like a big deal. He’s clearly left that to focus on his algorithm and that leads to movies like “Red Notice” starring Dwayne “The Rock” Johnson, Ryan Reynolds and Gal Gadot in a movie designed to be a franchise that no one really connects with.
Subscribers may have seen it, they also watch “Bright” with Will Smith and countless terrible Adam Sandler movies, but those movies don’t build buzz, get people excited, or create enthusiasm for the service. Netflix needs less content, but what it produces has to be much better.
Netflix needs to change its release schedule
Netflix created the idea of binge-watching by releasing entire seasons of its shows in one go. That model worked when you had no rivals, but now that you’re dealing with multiple competitors for eyes, it no longer makes sense.
Disney shows are released one episode at a time. That allows the media to cover each episode as an event, while viewers know when they can talk about each episode with friends and colleagues. That’s a huge advantage that Netflix willingly gives away simply because it thinks its subscribers like the current model.
They probably do, but that doesn’t benefit the company. When you have a lesser known (or completely unknown) IP, it takes time to build an audience. Netflix shoots itself in the foot when it comes to doing just that with its current release schedule.
Yes, some subscribers would complain that they want to watch “Stranger Things” or the next season of “Ozark” all in one weekend, but that’s not how people traditionally consume content. Netflix has been very stubborn on this, but its success depends on making this change.
Netflix needs live sports
Amazon and Apple (AAPL) – Get a free report they have immersed themselves in live sports with “Thursday Night Football” and Major League Baseball respectively. from Comcast (CMCSA) – Get a free report Peacock has Premier League football while Alphabet’s (GOOG) – Get a free report YouTube has made a deal for NFL Sunday Ticket.
Netflix has stayed out of the live sports space and that’s a mistake. Sports is dating viewing really the last dating viewing left. Disney has built ESPN+ on the foundation of being the home of UFC Pay Per Views. People have to subscribe if they want to pay more for that content.
While bidding on an NBA or even NFL package may be unlikely (but not impossible) for Netflix, you could make a move for the UFC, WWE, or AEW, the major professional wrestling groups that have a following around the world. world and devoted audiences (and deals to come). relatively early).
Netflix can choose to play on the fringes of live sports, avoiding the huge cost to the NFL or NBA, but anything else needs to be discussed because sports fans have shown they will follow their teams wherever their fans go. Rights.