Two years ago, Netflix lost 200 thousand subscribers in a quarter and the streaming giant was thought to be in crisis. Today, the company announces record revenue and 13.1 million new subscribers. Between these two extremes there have been years of changes: the arrival of the plan with advertisements, the fight against password sharing. And judging by the new announcements and rumors, Netflix wants to keep changing: will focus less on the originals, will cut the basic ad-free plan (as it has already done in Italy) and will invest even more in the world of gaming.
Netflix continues to change: fewer originals, more games and goodbye to the basic plan
Netflix isn’t just winning the streaming wars, it’s dominating them: with 260 million global subscribers, far surpasses all its rivals (according to Statista, the second in the ranking is Disney+ with around 150 million). At the same time, it has also collected several Oscar nominations — although, compared to the past, most of the nominees are not originals produced by Netflix: for Maestro, NYAD e Rustin the steaming giant only acts as a producer.
Compared to the past, Netflix seems to focus less on Original productions. Some of the streaming giant’s most popular series and films are “homemade” ones: from Stranger Things to The Crown for the series, moving on to films by Scorsese, Fincher, Baumbach, Bong Joon-ho, Cuaròn, Jane Campion and Cohen brothers. But Netflix seems to have understood that the cost and effort of these productions is often not worth the candle: it’s not the real reason why people watch Netflix.
More and more “TV”, from classic series to wrestling
Looking at the streaming giant’s rankings, we find more and more films that Netflix only distributes and series that debuted on classic TV, and then landed on streaming. And also some of the exceptions, like Berlin, are spin-offs of series that Netflix bought after evaluating their success. A tactic that is paying off — and one that Netflix seems to want to continue.
Netflix has announced the acquisition of the rights to wrestling, in particular the WWE Monday Night Raw. A five billion dollar deal. That if placed alongside the departure of Scott Stuberwho led Netflix’s film division for three consecutive years to become Netflix’s most nominated film studio Academy Awardsmarks a clear change of pace.
While other services focus on specific content (Apple TV+ is focusing on films and series by prestigious authors, Disney+ on its Marvel portfolio, Star Wars, Pixar, etc.), Netflix seems to want to reach all viewers. And although it continues to produce original films and series, it seems that buying many different products is a more efficient strategy: from The Legend of Tarzan to Suits, films and series that they are more successful in streaming than they were in cinema or on TV.
Advertising works: goodbye to the basic plan
Netflix he added 13.1 million of subscribers during the last quarter of 2023, for 247 million subscribers in total. Of these, 23 million use the basic plan with advertising: just under 10%. A percentage that might seem low if you don’t reflect on how streaming advertising is a recent option — and the opposite of what Netflix has been offering for years.
The streaming giant seems to want to continue believing in this plan. And to make it more attractive, Netflix no longer allows new or returning users to sign up for a subscription Base without advertising. In Italy, since last October we can no longer sign up for the basic €7.99 subscription. This change will also happen in Canada It is in the United Kingdom in the second quarter of this year, and then in the rest of the world.
The basic subscription without ads was too close in price to the 5.49 euro one with ads. If you don’t want to watch ads, the cheapest plan costs 12.99 euros (Standard), while the most expensive 17.99 euros.
This detachment makes it more attractive to watch advertisements, which are still less than classic commercial TV. In the fourth quarter of 2023as in previous quarters, ad subscriptions grew by nearly 70% quarter on quarter, now reaching the 40% of all subscriptions to Netflix in markets where there is the option to watch advertisements. In short: advertising for Netflix is here to stay. And indeed, we can expect further increases in the future for those who want to avoid looking at them.
More and more games
The earnings report of Netflix It also reveals that in 2023 user interest in games on the service has tripled. Although games still represent a relatively small part of the offering of Netflix, the company declares itself satisfied with the progress made. And, in all likelihood, it will continue to invest in the world of gaming.
The trilogy of Grand Theft Auto played a fundamental role in the success of this project, both in terms of installations and involvement. Netflix did not provide specific information on the number of downloads from the platform, but made it clear that GTA has made a difference.
The announcement marks a notable change from 2022, when only less than 1% of Netflix subscribers played the games offered by the platform. As with TV and cinema content, the difference is made by the offer. Netflix has continued to expand its game library, introducing popular titles such as Hades, Dead Cells, Braid, Death’s Doore Katana Zero.
In this area, Netflix has focused more on originals: it has developed its own games such as Oxenfree II: Lost Signal, acquiring an independent developer. And it also offers games based on its original programs, such as Money Heist e The Dragon Prince.
More games, more advertising and fewer original films and series: Netflix seems to have taken a clear direction. And he is reaping the benefits. As much as cinephiles like us would prefer to see original arthouse films and never-seen-before series, Netflix speaks to a much broader audience. And he does it with success unthinkable two years ago: who among us would have bet that advertising and games would become an important (albeit not the majority) slice of Netflix’s business?
