News hardware Netflix does not intend to stop this controversial practice!
Published on 10/19/2022 at 15:56
Still the market leader despite the loss of millions of subscribers, Netflix continually seeks to adapt its features to maintain a viable model without upsetting habits too much. But the way in which the series are offered is debated.
Netflix: diversification of content and subscription with advertisements
Despite this leadership status, Netflix is still not a profitable service. The diversification of activities, whether linked to original productions or the launch of the gaming tab, aims to improve the economic model on which the principle of subscription is based. This last one goes evolve by proposing a new formulaless expensive, but which adds advertisements in return.
Specifically, this subscription will cost €5.99 per month, in exchange for which users will be locked into 720p, only able to start a single stream, and some third-party content will be inaccessible. In addition to this, subscribers to this formula “with ads” will have to watch 4 to 5 minutes of advertising per hour. A cringeworthy amount of advertising, but Netflix wanted to compensate for this growing discontent by specifying that these ads will only be placed at a logical moment or a fade to black. This new subscription will be available from November 3and Netflix hopes to attract new subscribers or bring back those who have terminated previously.
The return of growth at Netflix!
Last night, Netflix revealed to its shareholders that the service had 223.1 million subscribers worldwidea figure that allows the firm to return to growth. There are thus 2.41 million new paying subscribers, including 100,000 in the United States and Canada. It is obviously good news for shareholders and managersas co-CEO and Chief Content Officer Ted Sarandos commented:
(I feel) better and better. The range and scale, as well as the range and cadence of hits improve. So, I feel better and better about this $17 billion spent on content, because what we need to do is improve to have more impact than anyone per billion dollars spent! And that’s what we focus on. I think we are spending at the right level today. And as we accelerate our revenue growth, we will revisit that number, of course.
Soon the end of binge watching at Netflix? The co-CEO sets the record straight
SVOD platforms have several options for broadcasting their series. Some offer 2 or 3 episodes at launch then one per weekothers do not broadcast only one episode per week. At Netflix, we usually find the seasons in full from the start, or divided into two parts. Anyway, several episodes are systematically available.
For several weeks, a rumor suggests that Netflix could end this practicewhich gave rise to the principle of “binge watching” (watch all the episodes available next). Proponents of the principle immediately stepped up to the plate, while its detractors saw a glimmer of hope. But Ted Sarandos shut down all talk by reaffirming that Netflix absolutely did not intend to stop broadcasting the content in a “bingeable” way:
We believe our bingeable release model helps drive substantial engagement from our subscribers, especially for new titles. This allows viewers to get lost in the stories they love. It’s hard to imagine, for example, how a Korean title like Squid Game would have become a global mega-hit without the binge-watching momentum. We believe that our members’ ability to immerse themselves in a story from start to finish increases their enjoyment but also increases their likelihood to tell their friends, which then means more people watch, join and stay with Netflix.
In other words, the media and public excitement around certain content would be directly linked, for Netflix, to the fact that we can see everything at once, or see a whole part of a season. Binge watching would therefore make it possible to recruit new subscribers thanks to word of mouth carried out by relatives who are already subscribers. Disney and Amazon Prime generally choose to stay on the “one episode per week” model.and this does not seem to limit their growth.