Netflix and Chills takes up a new meaning when the company loses $17 Billion in value over a single day
Netflix has been an online telecommunication meal for adults and teens alike. Its raging popularity took the World by a storm that proved to be a nightmare for Television sets and companies but a delight for its users. The mega-billion company not only broadcasts amazing and mind-blowing shows, it also makes it easier for us to follow the concept of entertainment on-the-go. Our cathartic pleasures come in the form of Stranger Things, Black Mirror, Riverdale, 13 Reasons Why, Sex Education and a whole gamut of series.
Frankly, to survive in the contemporary World, Netflix has become a necessary tool to engage in peer group conversations and humanistic contact.
Impact of Netflix in the 21st century
Producing up to 700 original shows and contributing to 1,500 hours of viewing are not an easy job and the brunt of these homogonous numbers seem to have taken a tool on the ‘Entertainment Giant’ itself. In an economy of free market, socialism and abundance of choices that we as consumers are provided with, it’s not an astonishing fact that Netflix is losing interest among millennia’s and its subscribers alike.
‘Netflix and Chill,’ has now become simply a catchphrase with viewers shifting its loyalty to Hotstar, Amazon Prime, YouTube Premium, and HBO Now etc. In our defence, we simply follow the motto of,“You provide, we follow.” Our capitalist veins and multipotentialistic personalities simply cannot fulfil our greed for viewing content and entertainment. The public reaction to such variety proves to be very harmful for a company like Netflix who focus solely on their subscription monetary gains and shows, without any aid from Ads and private media manufactures.
The Titanic meets its Nemesis
Stating this startling fact, Netflix reported to have lost up to 2.7 million paid subscribers. Its stocks dropped by more than 10% and as stated by the New York Times, it’s suffering from a loss of millions which is only recoverable if they sign up more subscribers in a figure of 2.8 millions globally. Such staggering figures are momentous tasks to complete which can only be made possible if Netflix merges with more entertainment companies or grants permissions to feature Ads. But with a reputation to maintain, they won’t resort to putting Ads on the streaming service to upgrade their potentiality. Truthfully, who would want an Ad to interrupt you while binge watching the gripping seasons of YOU? There’s a reason why We Eat, Sleep, Netflix, Repeat.
The current dwindling down of funds does give a way for other companies to succeed, but what guarantees their long way ride when they face the same situation. We as audience are content-hungry and when we don’t receive the programming nutrition, we become angry. Spiralling down of Netflix, will lead to the death of a Netflix culture itself. But, our concerns are not shared with the creators themselves where Reed Hastings comments, “Our product has never been in better shape.” The only way that could be true is, if you compare the earning reports between 2011 when Netflix was a physical disc mailing company and now is into online mainstreaming.
Fierce Competitions among Similar Industries
The rat race will be seem to have some more runners with Warner Bros and Apple ready to launch their guinea pigs for testing. With such speculations on brand propositions, the idea of “staying out of competing for Ad revenue and instead entirely focusing on competing for viewer satisfaction,” seems to be a fraudulent loss. Even with such big companies in succession, the snatching away of movies and shows pertaining to copyright issues is another obstacle in the course that Netflix has to cross. Moreover, if you’ve experienced heartbreak after witnessing the fall of The Office, Friends, and Pretty Little Liars, you are not alone in this mourning procession.
Addressing the elephant in the room is the discriminatory online content distribution that happens with the homeland of Netflix, America and its branching counterparts. The bias experienced due to shows channelled only in the Netflix of New York, London, Tokyo and major metropolitan cities as compared to your Netflix in Brazil, Mexico or even India is a bridge that should be constructed for customer satisfaction. Even though executives emphasize on international markets and subscriber growth, the enmity of the audience remains with unfair content distribution.
The marketing strategy of aiming for quantity remains, with new ‘Netflix Indian productions’ that sees steady increase and engagement of Indian viewers, slowly building on a population of 1.2 billion and counting. Ramping up the shows that do well domestically, they also gain international recognition putting the diversity of variety shows ahead. If losing market in the US is below sea level, Netflix’s abroad markets seem to be the anchor holding the landscape of its headquarters.
Solutions, Strategies and More Entertainment
The solution to such problems seems to be a rope-walk for us. If money goes out, money needs to come in, and we are the ones who provide them the incentive. With subscriptions at a price range of Rs. 500, 650 and 800, it’s only a matter of time when the former two money limits will be dissolved. Quality also comes at a high price due to which the company is focusing on increasing gripping and fascinating movies and shows it has the capacity to produce. The only problem encountered is the absence of profit, Netflix will utilize for its mass recognition and status. As an investor, this tells a different story, where shares and cash flow is trickling down.
If this article is a revelation to the back-story of your beloved App, we are not inducing you to extreme stress levels of Netflix being on the verge of cancellation. The recent Wednesday news forced us to think about the future and sustainability of the entertainment giant only to come up with solutions that will prove to be beneficial to us in the end. If there is one thing, the market is understanding now is the importance of good content creation and it will only be a matter of time when we will go back to our couch potato sessions with more shows to come our way.
What does the future hold in store for Netflix, and which direction is it leading us to?
Let us know about your thoughts and by all means, do sneak in a few series suggestions!