I believe Netflix does not require any introduction, but I’d like to give you a brief.
Netflix is the world’s leading premium entertainment service, with over 125 million members in over 190 countries watching TV shows, documentaries, and feature films in a variety of genres and languages.
However, since the post-pandemic, Netflix has lost thousands of customers, and recently, I mean yesterday, Netflix has stated that it has lost approximately a million subscribers across the United States and Europe.
Here are my explanations for Netflix’s eventual downfall!!!
Paying directors millions of dollars to produce TV shows
Netflix is paying directors millions of dollars to create TV shows or to purchase films. Recently, Netflix set aside a budget of about $200 million for the film “The Gray Man,” which was directed by the renowned Joe and Anthony Russo of “Avengers: infinity” and “Endgame.” And this movie failed to live up to the expectations of the audience, making losses.
This was merely one example. Netflix spends several million dollars annually making movies, TV shows, or purchasing the rights to a title.
BUT on the other hand, as I mentioned earlier, YouTube is more than just a social media or an OTT platform.
YouTube doesn’t always pay for content, but even when it does, it still generates millions of dollars daily and millions of hours of viewing every hour.
This is the #1 cause of Netflix’s losses and declining customer base.
No other source of income.
I previously explained why LG left the smartphone industry in an earlier post, stating that while they were producing innovative phones with good quality, sales were lacking, and eventually they started to lose money.
This was happening with Netflix.
Don’t put all of your eggs in one basket.
Netflix kept all of its eggs in one basket. However, we can see that some of their main rivals, including YouTube, Amazon Prime Video, Disney+ Hotstar, Zee5, Sony Liv, and Amazon Prime Video, have kept all of their eggs in different baskets.
For instance, if Amazon Prime Video suffered a loss, it could make up for it by selling goods on Amazon, AWS, Kindle, Audible, and other platforms.
The same applies to Hotstar, Zee5, and Sony Liv. Since all of these OTT services had TV channels like Star TV, Sony, and Zee, they could make up for any losses.
Netflix, on the other hand, only has one type of source, which is a subscription. Another source could be independent documentaries that Netflix paid to keep.
Prices are High
I don’t know about other countries, but Netflix has very expensive prices, at least in India. A typical Netflix subscription costs Rs. 199, which is extremely expensive when compared to its rivals.
Okay, so it might not be a problem for some users, but when compared to Netflix, their rival’s features and benefits are far superior.
Assume we have a basic plan. Rs.199 per month When it comes to Hotstar or Prime Video, the best plan is around 1500 and they offer 1080p, 4-5 devices at a time. Netflix only allows you to download and watch one device at a time and the video quality is SD (480p). Even Amazon Prime has additional benefits such as free delivery, Prime Reading, Prime Music, and more.
Netflix Losing Licensed Titles
Netflix became extremely popular with shows such as Friends and The Office, but according to reports, Netflix is losing licenses to these titles. This was another roadblock that Netflix needed to overcome. I believe these two are the evergreen watches (though I did not watch anyone😥).
Netflix has some less curated web series like Narcos, Money Heist, Squid Game, Stranger Things, and others, but Disney+ Hotstart has a larger library of Marvel Series, and HBO series like Game of Thrones, Europhia, Pixar, and much more.
I believe that businesses should keep a hook on their customers in order to keep them as repeat customers. I also got a Netflix subscription when Money Heist Season 6 was released, and I binge-watched the entire series beginning with Season 1 in a month.
These are my thoughts on why Netflix is losing customers. There are some common reasons, such as people having no time to watch after the pandemic ends and being preoccupied with their work, but these are my predictions based on their business model.
I hope you learned something from this. If YES, please like, share with your #Netflix Friends, and ask him not to cancel.
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