Netflix is at the top of the streaming game so far. It has proven its success through producing amazing series, and upgrading their platform regularly.
But nothing stays the same. Streaming services are becoming more and more popular these days. The demand has become so high with many people appealing to cord-cutting.
Smart TVs and new devices have made it quite easy to watch and stream the things we love. We don’t have to stick around and adapt to scheduled entertainment options. We can just stream it whenever we can!
The Competition Netflix Is Facing:
Although Netflix is a renowned streaming service, both in the United States and internationally, it seems that they’re losing American subscribers bit by bit. Let’s go ahead and figure out why.
The very first thing we need to think about is the underlying competition the company is facing. As we said earlier, more customers are looking into buying a streaming subscription these days. It makes the market one with high demand. Other networks are looking into creating their own streaming service, getting head to head with Netflix in this rapidly growing industry.
Disney will be launching its first streaming service later this year. They’ll have access to Marvel movies, and new series created exclusively for the streaming service. This will definitely pose danger on Netflix’s success with American viewers.
Netflix Successful International Outreach:
If we’re talking about the international outreach for Netflix, they seem to be doing a pretty good job. Recent reports estimate a 10% drop in their stocks, but the international increase of subscribers remains in-flow.
The company expects a huge increase in their Indian viewers over the upcoming months. They also announced their intention to produce around five new shows specifically targeted for such viewers.
This comes as a response for the incredible success some of their international shows seemed to make. On the top of the list comes The Rain from Denmark, How to Sell Drugs Online from Germany and Quicksand from Sweden. According to The Verge, each one of these shows managed to pull in more than 15 million viewers from across the globe… even outside of their intended viewership.
Streaming Market Saturation Is On the Rise:
Although the strategy followed by Netflix is a sound one, bringing in customers from around the world, it seems that the market of streaming services is becoming saturated bit by bit. It’s not just Disney releasing a service of their own. Lots of networks and companies are looking into this huge opportunity of pulling viewers off TV screen. WarnerMedia has announced the development of their own platform, even Apple is taking a piece of the cake with a streaming service yet to be released.
If customers of streaming services start to be scattered across multiple providers, Netflix will start losing its top position. They’d still be making a ton of money, but it won’t be enough to keep producing the massive amount of shows at the rapid rate they’re currently going at.
Shows Pulling Out from Netflix:
As more competitors get on the battlefield, some shows that are not originally made by Netflix is pulling out from the platform. Popular series like Friends and The Office is leaving the platform soon in favor of other services. This furthers the company’s challenge in order to remain on the top of the market.
Also, not enough originals being made by Netflix could have contributed to their loss of around 130,000 subscribers during only the last quarter. It becomes all the more challenging to manage their expenses on new productions while losing incoming earnings.
What Does Netflix Plan to Do?
Indeed, the company is growing internationally, but they’ll never forsake the American market. It’s been said that Netflix has already bought a bunch of studio sets to expand their productions over the upcoming months.
The company is also making a deal to buy a movie theater located in Los Angeles. This would be a great move for a streaming service, honestly. But in the time-being, Netflix is already spending around 15$ billion to produce new shows and movies. This is a massive amount of money to throw in production only. They’re probably looking for long-term, getting the market for themselves for the years to come.
So, will Netflix go out of business? We highly doubt it. We love their shows and, apparently, they’re doing the best they can to keep producing the things we love. Tune in to hear more news about our beloved platform.