Netflix has held the monopoly of streaming since it revolutionised tv viewing, but with the market becoming increasingly saturated, it’s interesting to see how this is taking its toll on the platform.
It could look like Netflix is struggling as it fails to meet its subscriber growth targets and is being outbid by other platforms when attempting to secure new content.
Their business strategy seems to have shifted from a streaming service, to a producer of original content as they increase their budgets and efforts in more films and shows. Their continued efforts, however, is being matched by their competition, with the likes of Amazon Prime offering original content to rival, and new streaming services such as Apple TV offering additional extras that Netflix can’t (e.g. 12 months free with a purchase of an Apple device.)
To add to their struggle, Disney have now banned Netflix advertising across their channels following the creation of their own service. Should similar broadcasting channels follow suit, which doesn’t seem too unrealistic, it could see all Netflix advertising removed from mainstream TV.
I find this topic of great interest, and think it is imperative that Netflix continue to adapt their strategy if they hope to further their success. They revolutionised TV viewing, the likes of which, arguably, contributed to the downfall of other companies such as Blockbusters, who failed to alter their strategy to accommodate the change of TV viewing.
It will certainly be interesting to see how a rise in competition, offering better deals, and a more inclusive service, combined with a hit on their advertising might impact the future for Netflix. One thing it certainly demonstrates is the importance of revisiting strategies to reflect audience demand and behaviour. The question is, will Netflix be able to acclimatise themselves to this change, or like so many companies before them, will we see them sink in the changing tides?
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