When COVID hit I read an article suggesting that it might hurt Netflix in the long run. Their subscriber numbers will eventually level off (as we're now seeing) but with their all-you-can-eat business model, if you watch ten hours of Netflix per day or one hour per month, you're charged the same. So the cost of keeping their servers r…
When COVID hit I read an article suggesting that it might hurt Netflix in the long run. Their subscriber numbers will eventually level off (as we're now seeing) but with their all-you-can-eat business model, if you watch ten hours of Netflix per day or one hour per month, you're charged the same. So the cost of keeping their servers running and stuff would go way up if people are binging Netflix while in lockdown, but it wouldn't result in any new revenue.
As the streaming services crack down on password sharing, I'd say you'll see people start subscribing to one service per month and just keep alternating them. (Netflix in May, Disney+ in June, and so on.) Amazon Prime has a huge advantage by packaging it with their Prime shipping service.
As for Netflix itself, they're at a disadvantage in not having a massive catalog of IP accumulated over the years, so I wouldn't be surprised if they make their marriage to Sony Pictures official in the coming years. Actually, I can see Netflix and some of the "small" major studios - Sony, Paramount, Universal, etc. - merging or entering into some kind of streaming joint venture to compete with Disney and Warner. It's not unlike what happened to the music industry.
The wild card, which I think people tend to overlook, is that young people watch YouTube much more than any of the paid streaming services. At least if my kids are any indication. Thanks to my son I just discovered the Dhar Mann YouTube rabbit hole.
When COVID hit I read an article suggesting that it might hurt Netflix in the long run. Their subscriber numbers will eventually level off (as we're now seeing) but with their all-you-can-eat business model, if you watch ten hours of Netflix per day or one hour per month, you're charged the same. So the cost of keeping their servers running and stuff would go way up if people are binging Netflix while in lockdown, but it wouldn't result in any new revenue.
As the streaming services crack down on password sharing, I'd say you'll see people start subscribing to one service per month and just keep alternating them. (Netflix in May, Disney+ in June, and so on.) Amazon Prime has a huge advantage by packaging it with their Prime shipping service.
As for Netflix itself, they're at a disadvantage in not having a massive catalog of IP accumulated over the years, so I wouldn't be surprised if they make their marriage to Sony Pictures official in the coming years. Actually, I can see Netflix and some of the "small" major studios - Sony, Paramount, Universal, etc. - merging or entering into some kind of streaming joint venture to compete with Disney and Warner. It's not unlike what happened to the music industry.
The wild card, which I think people tend to overlook, is that young people watch YouTube much more than any of the paid streaming services. At least if my kids are any indication. Thanks to my son I just discovered the Dhar Mann YouTube rabbit hole.