Netflix Struggles With Content

Netflix Is Bleeding All Over the Place

April 19, 2022

It looks like Netflix is in hot water. For the first time in its history, the company has posted significant quarterly subscriber losses. That subscriber bleed is predicted to be even worse the next time the company reports quarterly earnings. So why is Netflix struggling so hard right now, and what could it do to cauterize the wounds?

Netflix Subscriber Bleed: 2 Reasons It's Happening, Possible Solutions

By now, most of you have heard that Netflix posted significant subscriber losses. After years of what seemed like unstoppable growth, the company announced its Q1 2022 net subscriber count went down by about 200,000 people. Thankfully, that's less than the 2.5 million the company had predicted, and in part is due to suspending services in Russia, which resulted in a loss of 700,000 subscribers. Still, the company is admitting that it can't pin all of this on the Russian invasion. So why is Netflix hurting so badly now after years of success?

"Bland content"

I put "bland content" in quotes because that's exactly what it is. I recently had the opportunity to have dinner with a Disney General Entertainment executive. At one point, I hit him with a direct question: "What's your opinion on Netflix?". His response was that Netflix is currently struggling because it has bland content. According to him, Netflix's IPs just aren't hitting well. The company is spending billions of dollars on content every year that people just aren't in love with. Meanwhile, it now has competitors with solid IPs that are drawing away subscribers.

Stiff competition and rising prices

People will only pay for so many streaming services. With rising prices and a limited amount of must-watch original content, many are questioning the value of holding a Netflix subscription. Particularly for US subscribers, Netflix has become a bit of a high-cost service with limited shareable features. A Basic subscription only allows you to watch on one device at a time. Meanwhile, almost every other service competing with Netflix provides multiple device streams per account. What's more, the quality of content is getting better for competitors. Paramount+ is going all-in on its Star Trek IP. And Disney owns a wealth of IPs that make it a force to be reckoned with, alongside the experience to deliver content people love.

Netflix needs to get creative

As odd as that might sound, Netflix needs to find a way to get creative. The company that's known for innovation has lost its edge. If you ask Elon Musk (not that anybody did, but he volunteered information anyway), Netflix's problem is that its content is too "woke". More likely, however, the company needs to do a better job of analyzing its own market and needs to find a way to make the price of its service feel worth the cost. That may come in the form of adding new features or reducing the cost with ads (which the company is now open to doing). Time will tell, but how Netflix reacts over the next year should be interesting.

This Week's Streaming Guide

Learn how Disney artists create magic with Sketchbook

Offering instructional content on how to draw, Disney's new series Sketchbook premieres Wednesday (April) on Disney+.

Hulu drama series Under the Banner of Heaven premieres this Thursday

As Detective Jeb Pyre investigates the murder of Brenda Wright Lafferty and her baby daughter in a suburb in the Salt Lake Valley, he uncovers buried truths about the origins of the LDS religion and the violent consequences of unyielding faith. Streaming Thursday (April 28). - Watch on Hulu

Ozark returns for season 4 this Friday

Season 4 of the popular Netflix drama Ozark returns this Friday, April 29. - Watch on Prime Video

Apple TV+ drama Shining Girls premieres this Friday

Newspaper archivist Kirby Mazrachi's dreams of becoming a journalist are put on hold after she survives a brutal attack that leaves her in a constantly shifting reality. Shining Girls premieres on Apple TV+ this Friday (April 29).

News and Industry Developments

Is Netflix tanking because its shows have gotten Bad?

The company's subscriber losses have many turning an eye to its content quality. - Daily Beast

Disney+ has 30% more value due to focus on genre focus

Customers like how Disney is going all-in on select IPs. - Deadline

What will the merged HBO MAX/Discovery+ streaming service look like?

The changes will be more than just cosmetic. - Business Insider

CNN+ failed for the reason Netflix struggles and Disney+ thrives

Emotionally connecting to the content is important--something Disney understands well. - TheStreet

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