Dear Netflix, Where’s the Chill?
Netflix is a word which has become synonymous in every person’s phone call today. Most people have a common reply when asked what they are doing. They are watching something on Netflix. Another discussion in calls between family and friends revolves around any new series being watched on Netflix. Such has been the impact that a day without watching a TV series makes it void. The pandemic has simply added to the hook by making more people watch TV shows on Netflix and other OTT (Over the Top) platforms to pass their time or catch up on something interesting or on a latest movie. All this would indicate that Netflix would be the perfect place to chill and there would be a constant growth in users across Netflix. The quarterly results of Netflix have a completely different story to tell.
Netflix lost over 200,000 subscribers in the 1st quarter of 2022 as opposed to the expected gain of 2.5 million subscribers. This is a huge offset from the expectations and the atmosphere around does not indicate that people around the world are shifting from the OTT platforms. The situation is so grim at Netflix that the shareholders have sued the firm for making outlandish promises and not disclosing the real state within Netflix. I am a huge fan of Netflix owing to the breadth of offerings in terms of TV series, movies, and documentaries that I can engage my time in. However, the past 12 months have seen a declining trend within me as well to solely view Netflix. This could either be a common trend across the world or it could boil down to individual choices of doing something else other than watching TV or being glued to the screen. So, why is the chill missing from Netflix suddenly?
1. Rise of new OTT platforms with unique offerings: With more people shifting to OTT platforms, there has been a sudden rush in the number of OTT platforms with offerings for specific set of shows. HBO, famously known for Game of Thrones and other famous Hollywood movies has come up with its own OTT platform which gives exclusive viewing rights for Warner Bros movies and series. This is a marked shift for people from Netflix as they will be guaranteed the best shows on HBO platform. Similarly, Amazon Prime and Disney+Hotstar is providing sports streaming which as well is totally missing from Netflix. These unique offerings are allowing people to prefer OTT platforms other than Netflix. In addition, the fabulous Academy Awards success of CODA which was supported by Apple has led people to explore Apple TV+ as well as an option for viewing new Oscar worthy movies.
2. Mellowing down of the pandemic and the Rise of Worldwide Inflation: The pandemic had forced everyone to stay in their homes and work. This allowed a lot of us to simply log onto Netflix at any point of time and watch any series or movie of our choice. With a lot of people heading back to work coupled with the existing inflation, many users are preferring to unsubscribe Netflix and priortising the OTT platform of their choice.
3. Unnecessary attempts to diversification: Netflix announced its intention of venturing into gaming services in November 2021. This aroused interest in the subscribers as this was an all-new domain that OTT landscape would have entered into. Fast forward 6 months and the games are in limited number, and it has not captured the imagination of the gaming industry as it should have. Such diversifications call for more investment from the company with minimal return on investment. This has translated into subscribers not viewing Netflix as an agent of innovation. There is no niche that is defining Netflix at the moment and the dynamic and impatient world is constantly looking for something new in anything they use.
4. Updated content as per geography: Netflix is the jack of all trades but not master of many. It has failed to provide offering as per geography. The limited number of Latin American or Indian Series as compared to its peers has resulted in a lot of subscribers shifting to other platforms. The Bollywood (Indian Movie Industry) films and Indian TV series coming on Netflix are unable to match that on Amazon Prime or Hotstar. This has led to another downfall in the subscribers in India, but also in other regions.
Amidst all this, is there anything that Netflix can do to start chilling again?
This is indeed a herculean task, but Netflix needs to stick to the fundamentals that got everyone hooked to it in the first place. The diaspora of offerings of latest tv series and movies across the world and regions need to be provided at a frantic pace. The unique offerings will not bring in subscribers. The new, high-quality content which comes at a rapid pace on the platforms keeps people hooked to the platform and make them talk about it within their family and friends. A systematic approach of every Saturday release of new tv series and shows just like Friday releases of movies will engage the users and bring in more users in the hope of catching a show or movie on the first day. This is already happening, but the frequency needs to be amplified to enable the subscribers to get glued to Netflix. Such ups and downs come within behemoths but sticking to the basics is the key for bringing back the chill scenes of Netflix.
