The Netflix Bullish Pitch
American BigTech has made a move on Netflix’s subscriber base. Let’s put the spotlight on the company’s best chance at protecting its ‘eyeball-share’ in the streaming world, and executing its grand strategy to become profitable. Showtime!
In the early 2000s, the company did DVD rentals. It was only when DVDs went the way of the Dodo that Netflix was forced to adapt into the internet platform we all know today, buying over-the-top rights to shows that aired on cable.
Unfortunately, 24/7 streamers became a threat to cable with every living room which “pulled the plug” and crossed over. A victim of its own success, Netflix could do nothing as channels tried to protect themselves by putting content rights on the top shelf financially, well out of Netflix’s reach.
So, for the 2020s, Netflix has reinvented itself again. Now, it’s a fully-fledged film studio making original content. Peaky Blinders still doesn’t come cheap, but it’s a good show, ad-free, and on-demand. Ten new paid subscribers every minute believe that’s an amazing service.
Now, it’s all about playing the waiting game. Plowing huge sums into “long tail” content streams and targeting international subscribers will eventually lead to world domination, and the growth figures leveling out.
Once that is achieved, bulls are expecting no further need for expensive, non-original ‘golden oldie’ shows on the platform (‘Friends’ and ‘The Office’ are already gone!). They also hope for original productions to get cheaper with efficiencies at scale, marketing spend to be reeled in, and, most importantly, prices to be jacked up. If all goes to plan, Netflix should stem the flow of red ink and turn a handsome profit.
Of course, it’s not going to be plain sailing. Disney+, Apple TV+, and Amazon Prime Video are now on-scene, and with there being no need to subscribe to all of these streaming services, winners need to be sorted from the losers. Some analysts think Netflix will be taught a lesson at the hands of these giants, and this is why!
