Netflix needs a clear strategy and don’t panic

In case of netflix it is quite conspicuous. Despite the appearance of countless movie and series streaming services trying to compete for its leadership, the platform has managed to remain the first benchmark in the sector. However, his world seems to have been turned upside down since he reported in April the loss of 200,000 subscribers in the first quarter of 2022. And the estimates for the second quarter are even more worrying, since he plans to suffer the departure of 2 million subscribers. users more.

Not a month has passed since the news broke and Netflix has released a contingency plan that attacks different fronts. From an economic point of view, the company has chosen to finance less quantity of original content, but of better quality. This does not mean that he intends to reduce his investment – in fact, he will increase it by $20,000 million – but that he wants to be more selective with the projects, and that has already set off alarm bells. among producers in Hollywood.

Additionally, it announced the launch of a cheaper subscription plan that will include ads (apparently coming this year) and started exploring the possibility of entering the world of live event broadcasts. And as if that weren’t enough, he wants to go on the hunt and find everyone who shares his account passwords so they stop doing it.

That said, it is clear that the company of Reed Hastings seems to have come out of its lethargy; although more by obligation than by conviction. However, The worst thing Netflix can do today is act out of desperation. The platform continues to dominate the market and has the wherewithal to do so, and needs to address some key issues to reverse the negative reviews and start building after a rocky start to the year; among them, offering a more organized catalog and being more aware of what is happening outside with the competition.

Netflix needs to adjust its strategy

The feeling remains that, in recent weeks, Netflix has stepped on the accelerator on topics that have been “dormant” for the past few years. The first drop in users in a decade was a painful but necessary reality check; especially so that the company exit comfort level which he has just adopted.

Netflix has isolated itself to the point of not even considering whether its release dates coincide with big releases on competing platforms. One of the most notorious cases was the series dawnwhich debuted on the service at the end of October 2019, just when the greatest expectation for the presentation of The Mandalorian on Disney+, which hit audiences a few weeks later.

The failure of dawn It was such that in mid-December, when two months had not yet passed since its premiere, Netflix decided to cancel it. And the problem was not the criticism towards the production, which received mostly positive reviews, but the lack of impact with the public. Jeffrey Fierson, producer of the series, did not hesitate to criticize the streaming service for its poor launch logistics. “If there’s one thing I would say is Netflix’s fault, it’s that it’s an island. They may not see what’s happening outside their walls, or they may know and the arrogance is so great that they don’t care,” he said. The Wall Street Journal.

And his shift to the video game industry doesn’t seem to have helped him stay focused either. Over the past year, the platform has been very mindful of releasing its games for iOS and Android – and absorbing studio oddity along the way – and so far none have garnered much attention. passion of the crowds. That too makes you doubt that your bet on the video game is really justifiedalthough it is a subject that we will discuss in depth on another occasion.

Beyond applying the necessary changes, Netflix’s worst mistake today would be exaggerating your attempt to make up for past mistakes or neglect. If the company rushes to make crucial decisions, it risks falling through and its relationship with users will suffer even more.