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Netflix looks as though it’s slowly but surely losing its edge and popularity with the consumer. Netflix has been around for a decade and has been one of the most influential companies in the entertainment industry. However, in the last year or so, there have been some major changes to their business model and it is not working out as well as they had hoped.
Netflix’s original content is not as popular as it once was, and they are struggling to compete with other streaming services like HBO Now, Disney Plus and Amazon prime which offer new and varied content every week. It’s easy to say then that competition has hindered Netflix’s growth significantly.
Netflix’s stock price has dropped significantly since last year, but they are still profitable. The company is trying to turn things around by investing in new shows and hiring big names like Shonda Rhimes and Ryan Murphy. Yet their content clearly isn’t helping them anymore. Netflix is failing because they are not adapting to the changing market and they are not willing to take risks. The company has been boasting about how it has been able to produce a lot of original content in the past few years, but it seems like this strategy is not working anymore. Netflix has been losing subscribers, which means that there’s a lack of interest in its content.
Not to mention now, but Netflix is raising its subscription model prices even further. Considering the prices have risen year on year, this is enough to put off consumers who may wish to pay less for something such as Disney Plus which ranges around the £8 a month mark. That, and with big rumours of Netflix adding advertisements to their content, why should consumers have to pay anything at all if this is the case?
This drop in subscribers isn’t surprising and it looks as though the numbers will only fall more. Even with shows such as Stranger Things, as popular as it is, coming back – it doesn’t seem to be enough to keep people invested. Competition from other companies was always going to be a factor in the future of the site due to how successful it is. It seems, as what happened to Blockbuster stores when Netflix came around, the latter could go just as extinct.
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