Netflix Originals Are More Mediocre Than Ever: Vice Editorial

[Y2kTheNewOldies]

https://www.vice.com/en_us/article/neaxmw/netflix-originals-are-more-mediocre-than-ever

Your faves are leaving Netflix, as you've surely already heard, thrown into the inevitable money pit of dozens more streaming services. As networks pull back what they've licensed to Netflix (RIP The Office, Friends, and much of Disney's catalog), the streaming pioneer is continuing its shift toward original movies and shows. Yes, the carousel of Netflix Originals that you already struggle to choose between will become even more confusing a content mine.


Netflix still has a hold on the streaming market—for now. A Q2 letter to shareholders shared by the company yesterday suggested that competition is causing struggles. For the first time since 2011, Netflix lost subscribers with membership increases for the most recent quarter over 2 million subscribers fewer than projected, a "tumble" that Reuters claimed affected Wall Street's lower opening today. Also addressed in the letter was the company's continued shift to original content; as it has previously found when it has lost shows and movies, Netflix said, "our members shift over to enjoying our other great content" but remain on the platform. The upside now, it says, is that it'll have even more budget for those Netflix originals since it won't be throwing money at licensing. It would seem like a win.

Part of the reason mentioned here is that some shows that were contracted to stream on Netflix has left for competing in house streamers Most notably when 20th Century Fox and Disney was in the process of ending their streaming contract with Netflix and moving their streaming content to Disney owned venues as in Disney+, and Hulu most notably. Also at play is Netflix originals competing against other streaming outlets for viewers/subscribers.

 

[Will_H_69_9]

in other words, the Netflix bubble just has burst. it was a matter of time before it would happen.

 

[Y2kTheNewOldies]

https://www.fiercevideo.com/video/netflix-shows-weakness-after-losing-126k-u-s-subscribers

Here is an Update.

Subscriber growth is still the key metric by which Netflix’s performance is measured, and by that standard, the company just posted some disastrous second-quarter results.

The company added 2.7 million paid memberships, dramatically fewer than the 5 million it had forecast. Moreover, the company posted a net subscriber loss (down approximate 130,000) in the U.S. for the first time since 2011. The company pegged the losses and forecast miss on a weaker content slate during the quarter, and promised the third quarter would see a return to growth. With help from the hit new season of “Stranger Things,” Netflix expects to add 7 million paid memberships (800,000 in the U.S. and 6.2 million internationally) in the third quarter.

During the company’s earnings call, Netflix CFO Spencer Neumann acknowledged the potential impact that price increases (between $1 and $2 per month) during the quarter may have had on Netflix’s subscriber growth but said that any side effects are worth it since price hikes are revenue accretive.

Part of this is price increases on Netflix and now the competition is going after the venue.