Given the dramatic drop in subscribers that Netflix had in the first quarter (200 thousand) and an even greater one expected for the second (2 million), let alone the growing competition (Disney +, HBO Max, Prime, Paramount +, among others) , the platform has already announced some of the measures it will be implementing in the coming months.
The question that arises is how much those adjustments will allow it to stay ahead and how much they will end up turning it into a mixture of a cable service and a movie studio.
Until now, Netflix’s hallmark has been to offer large amounts of content (series and movies) on free demand, that is, the viewer chooses when and how to watch it and without commercials; every week there are more than ten new releases aimed at the most diverse profiles (documentaries, soap operas, reality shows, art films, blockbusters, among others).
The inclusion of commercials is one of the measures that has been mentioned. Apparently, it would happen for those subscribers who wish to pay a lower monthly amount, thus seeking both to prevent viewers and to motivate more subscribers to pay, preventing password sharing, one of the main causes of said decrease in users, as they have indicated.
It is uncertain if that will happen, although for this it has also been said that other “locks” are being worked on to prevent it from happening when the system identifies that the same account is being used in different IP’s.
Now, with commercials, at least, for those users, Netflix will be very much like a cable system except that the content won’t be tied to a schedule; however, Netflix has discussed the possibility of also doing some specials on unscripted shows (probably reality shows) and real-time stand-up specials, which would certainly make it equal to a cable service (even from TV). open television).
A big question that arises is, how will they be able to guarantee the same content to those who pay for the service without commercials, since the ad forces us to pause what happens in the show in those cases so that the commercial content can be shown. Perhaps paying a little less also implies a delay and then it was no longer so “live”, in addition to the fact that it would imply other logistics and production challenges.
On the other hand, Netflix has commented that it will have more films showing in theaters, a measure that has been implemented relatively little and that has also served to meet the requirement of certain associations such as the Academy of Motion Picture Arts and Sciences.
The Oscar recently announced that for the 2023 ceremony, the films must have been released in theaters during 2022 in one of the six metropolitan venues: Los Angeles, New York, Bay Area, Chicago, Miami and Atlanta. This measure, unlike the previous one, may be advantageous to the platform.
It will give you the chance to have some of your productions seen on the big screen, but better yet, it could allow you to extend your presence for longer.
A big problem with Netflix and about which little has been said is that, with so many releases a week, they end up cannibalizing each other, causing the vast majority to get lost among the rest. Added to the same, is the fact that they hardly get a title to be in your Top 10 for weeks.
Content is being consumed at the same rate as it is released and Netflix would really like to be able to produce a little less, of better quality and with greater consumption. Furthermore, the move could very well allow them to reach other market segments.
What will come of it? It remains to be seen, as well as to see what other measures or strategies other services implement. For example, it has already become clear to Disney that the alternative of releasing simultaneously in theaters and Disney+, at an additional cost, does not work for it.
HBO Max has also stopped releasing simultaneously in the US, free of charge, between both media; It was good as an attraction strategy during the pandemic, a period in which ticket sales would still be affected.
The point is that the battle for subscribers is still in its infancy and the business model of cinema and entertainment continues to be redefined with “the new reality”.