The Streaming Game of Thrones
For the first time in a decade, Netflix lost subscribers.
How did this happen?
10 years ago it was Netflix that revolutionized the entertainment industry. Throughout the years, it was Netflix originals such as House of Cards, Stranger Things, and Ozark that dominated the streaming charts. And if you asked me what was in store for Netflix in 2022, I would guess that they would be the first streamer to win the best picture at the Oscars… but that honor went to the different streamer, Apple TV Plus. So let me repeat myself. How did this happen?
If you asked Netflix they would tell you that their problem is password sharing. They would tell you that they are thinking about including a commercials model to their subscription plan. They would also blame marketing, as they fired 25 marketing employees. Is it as simple as that? I don’t believe so. Most people don’t either.
Once upon a time, Netflix stood alone. As a consumer, I felt understood by Netflix. I loved the binge-watching model. I loved having a portfolio of old content to watch, and more than that I loved the originals. It was a place of convivence and creativity. That is no longer the case. Many users took to Reddit to discuss their gripes with Netflix. There is just too much noise, there is too many streaming services, and there is too much content. But wasn’t Netflix supposed to loudest in the room? Why isn’t their content enough?
In the Instagram comments section, @Jesslovesmokey commented, “Hulu and HBO Max. Netflix not worth it anymore.” She received 500 likes, and there is truth to her statement. Q1 and Q2 2022 are going well for Hulu and HBO Max. According to Variety, the Kardashians became Hulu’s most-watched premiere in America. On a celebratory Instagram post, @TonnyKardashian commented, “are we surprised tho IT WAS DESERVED.”
Why does this matter? Netflix has competition. Is it really shocking that their competitors are doing well? Quite frankly, yes. As Gleiberman wrote in Variety, “Netflix is mortal — not a god, not an invincible monolith, but a company like any other — could wind up having a powerful impact on viewers’ perceptions of the entertainment world they want to live in.” HBO Max and Hulu remind us that Netflix is a mere mortal.
For the first time in a decade, consumers are acknowledging Netflix is not a God. We are coming out of a decade-long fog and can acknowledge that Netflix makes mistakes. In a TikTok video, @Jazzminenotjasmine discussed how many of her favorite Netflix originals were canceled after one season, such as The Society, Anne with and E, and Teenage Bounty Hunters. @Kirawontmiss tweeted, “This is what happens when you keep raising prices and don’t have anything good on there.” In 2021, Netflix spent $230 billion on content. How can it be true that there is nothing good on there?
The answer is that it is quality over quantity game. Even though Netflix lost 200,000 subscriber’s in Q1 2022, it also released its most popular English language show to date, Bridgerton season 2. So how did Netflix have a huge success and a huge loss in one quarter?
Quality beats quantity. Netflix dropped the entire season of Bridgerton season 2 all at once, and many viewers (myself included) finished it in forty-eight hours. Once we are done, we want to know what is next, and for Netflix, it is not sustainable to make that much high-quality content. Streamers like HBO Max and Apple tv plus are slowly cranking out high-quality shows and receiving great praise. A Reddit user described appointment tv as shows that are “aired” once a week forcing us to “shiver with antici…pation” . Shows like Succession, Ted Lasso, and Euphoria fall into that category and have seen great success. The reason for that is because we are being forced to wait, forced to consume at a slower rate, and forced to examine shows for what they are. We hate it, but we love it. The anticipation makes us love the content we are watching, and it makes us excited for the next episode to be released.
In the post COVID era, we are changing. According to one report, the number of UK homes with at least one paid-for subscription to a streaming service fell by 215,000 in the first three months. Content is king, and the winner of the streaming wars needs to be the best because most consumers will not pay for 10 streaming services. As mentioned in a Reddit post by camwow13, consumers do not feel loyalty to streamers they only care about content. Whoever has the best content is the place they will go.
The post COVID era is and will change the way we interact with content. People are going back to theaters. This is shown through the smashing success of Everything, Everywhere, All at Once. @Sheilagirl2299 tweeted, “Everything, Everywhere, All at Once was the best movie of 2022 and you MUST watch it in a theater”. Consumers are craving the movie theater experience. They want to be in front of a big screen, they want to be eating movie theater popcorn, and they want to be a part of an audience. @MarvelPerfectGifts&Clips tweeted, “I will never forget the silence in the movie theater full of people after the Infinity War ending. One of the best experiences”. We all have great movie theater memories, and we want to create more. The Netflix and chill way of life is slowing down as life speeds on.
The binge racing model may be dying, but the content lovers are very much alive. People are looking for high-quality content at fair prices. This does not seem to be a password sharing issue, but rather a changing environment issue. I can’t help but wonder, in a decade from today will Netflix be Netflix or will Netflix be Blockbuster?
