✔️ 2022-04-22 15:07:00 – Paris/France.
The policy of not allowing the sharing of accounts and passwords, the "woke culture" and the intense competition between Streaming are the three reasons that cause the drama - not the tragedy - of Netflix.
The news that Netflix lost subscribers for the first time (200 between January and March 000) was alarming. He announced that in the next quarter he could lose another two million worldwide. At the end of March, it had 2022 million subscribers. Losses occurred in the United States-Canada, Europe and Latin America, but increased in Asia-Pacific.
During the two years of the pandemic, Netflix and the platforms of Streaming experienced a boom as users contracted the services to cope with confinement with audiovisual content.
Netflix has hiked prices as the world suffers decades-long spikes in inflation, forcing the most vulnerable households to cut the bill. Streaming.
Honesty and constructive criticism are part of Netflix's corporate culture. Frankly, the decision not to allow password sharing between users is wrong and goes against their expectations and habits of digital consumption.
It is undeniable that Netflix loses potential customers when a subscriber shares their password with family and friends, but by charging additional fees, they also lose their loyalty to the platform. Internet culture is about sharing and collaborating and Netflix can't do anything about it.
Netflix CEO Reed Hastings remembers you saying about Blockbuster's greed and lack of vision: "If a business model is to make customers feel stupid, it's not going to generate much loyalty. . »
Despite the disconnects, Netflix recorded revenue in the quarter of $7 million, an increase of 867,7% from the same quarter of 8,9 and 2021% from September-December of the same year.
Although revenues are holding up, the (always unrewarding and fickle) stock market has sanctioned Netflix's action as a way to question its ability to sustain subscriber growth and the company's future prospects.
Netflix stock price fell 35% on Wednesday, April 20. The sudden capitalization loss was $54,3 billion. However, other companies with platforms Streaming such as Paramount Global, Walt Disney and Warner Bros also suffered share impairments. Is this the first crisis that has flowed into collateral damage from inflation and war in Ukraine?
Another cause that has caused the loss of Netflix subscribers is the so-called "woke culture" which could displease some traditional users, little affected by creative innovation and ethnic and cultural diversity.
“Waking culture” refers to the “awakening” of certain minorities and social groups. It is the “politically correct” trend of producing audiovisual content with obvious inclusion and racial and cultural representation with white, black, Asian and Latino actors.
For some viewers, it may be shocking to see such iconic literary characters as Inspector Javert (Les Miserables) or knight-thief Arsène Lupine portrayed by black actors, when it is clear that their creators Victor Hugo and Maurice Leblanc did not design them that way. in his novels.
Netflix seeks to be inclusive in its original content as its own value and as a creative engagement and risks attracting a diverse and libertarian audience with buying power. It is also part of its strategy to produce global content visible in any territory.
Netflix is not only an Internet platform and a technological and innovative company, it also sees itself as a creative, artistic company that promotes art through quality cinematographic and audiovisual productions. Hence his interest in participating in film festivals and obtaining Oscar nominations.
The question is whether in the future we will see a black, Asian or Latino James Bond (Metro Goldwyn Meyer, Amazon Prime Video) or a Batman-Bruce Wayne (Warner Bros, HBO Max) as part of the "revival" of these productions. companies and platforms competing with Netflix.
Let's not forget that the platforms of Streaming video and audio like Netflix and Spotify allow the right of access to culture. Thanks to technology and its global reach, they promote the plurality and diversity of audiovisual content, in a way that traditional televisions and record companies never did in their time.
Finally, competition on the Internet has favored the emergence of innumerable Streaming looking to take market share from Netflix. According to JustWatch, in March 2022 in Mexico, Netflix had a 28% share, followed by Amazon Prime Video (16%), Disney+ (15%) and HBO Max (14%). The last three platforms have seen rapid growth in the country.
To regain lost ground, Netflix must tap into the culture and strategies that made it grow and be the premier platform for Streaming video. It's all summed up in the book that Reed Hastings and Erin Meyer wrote together: “There are no rules here. Netflix and the culture of reinvestment”.
Netflix needs to go back to basics and make people more important than subscriptions, put innovation, creativity and flexibility first.
Hastings: You wrote that "the vast majority of businesses fail when their industry changes." the Streaming undergoes changes. Don't worry about stock market speculators, be more innovative, more creative, and do whatever it takes to make sure it doesn't fail.
Twitter: @beltmondi
President of the Mexican Association for the Right to Information (Amedi)
in communication
Media and telecommunications analyst and UNAM scholar. Studies media, new technologies, telecommunications, political communication and journalism. He is the author of the book media presidentialism. Media and power under the government of Vicente Fox.
SOURCE: Reviews News
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