Could Netflix Be in Trouble Because of Competing Streaming Services?
Streaming giant Netflix has been dealt a couple of big blows in recent months. On July 9, a tweet revealed that Friends would be yanked from the service’s lineup as Warner Bros. prepares to launch their streaming service. The Office will also be removed from Netflix ahead of a 2021 release of NBC’s launch of their own streaming service. Disney has also slowly removed their content from the platform ahead of the Disney+ platform launch. Could the launch of several new services spell doom for the original streaming content platform? The answer is kind of complicated.
Fans claim they’ll cancel when their favorite show jumps ship
Fans have become accustomed to watching their favorite shows on repeat with Netflix. Two of the company’s most significant acquisitions, Friends and The Office, are set to jump ship, and it looks like it could spell trouble for Netflix.
According to Cord Cutters News, 1 in 10 subscribers are willing to leave the content giant when The Office leaves the platform. The loss of viewership could total up to $935 million a year if you tally up the monthly subscription of 6 million viewers, according to a research study.
The massive loss of income could be problematic for the streaming service. The monthly subscription model is what fuels the business’ ability to craft original content and purchase the rights to America’s favorite shows. If the company were to lose nearly $1 billion each year, their buying power would be significantly stunted.
Netflix will probably be okay, though
While the research study doesn’t paint a pretty picture, there is some good news for Netflix fans. Sure, 1 in 10 people claim they’ll leave the streaming service when The Office is dropped from the lineup, but the odds are most actually won’t go when the time comes.
While the drop in subscribership isn’t expected to be nearly as cataclysmic as researchers report, Netflix will likely see a dip in their subscriber numbers as fan favorites are shifted over to other platforms. The company that revolutionized the way people consume content, however, seems to have a plan. It’s possible that they are planning to put all of their money into original content.
Netflix is doubling down on original content
Netflix must change to stay competitive. As more companies begin to launch streaming services, the company will need to dig deep to find a new competitive advantage. Original content seems to be the angle they are most invested in.
According to IMDB, Netflix has over 100 pieces of original content planned for the next three years. The content ranges from series to movies, to shorts, and they are currently in all stages of production. Some have been announced, while others are filming, while others are in post-production.
The streaming giant has done exceptionally well with their original content thus far, and it looks like the same will be said for their future endeavors. The streaming giant’s original film, Roma was nominated for a staggering 10 Academy Awards. It took home three of the prestigious trophies for the film. Steven Spielberg even bemoaned the streaming platform’s inclusion in the awards shortly after it aired, according to CNBC.