Netflix has been facing a massive loss of subscribers in the last few months which declined their revenue graph. According to data, around 2.5 million account subscribers have canceled their subscriptions in the last five quarters. Seeing this ravaging issue, Netflix has been attempting to redesign its release model. And it would seem that they are making these changes soon after Stranger Things ends.
Will Netflix drop its binge model post Stranger Things?
According to recent research, experts have suggested that Netflix’s past model of binge-watching seems to be one of the core reasons that are affecting its growth. It has been their legacy that they launch a whole season altogether. This allows users to binge-watch their favorite shows without waiting much for the new episode. The caveat here, however, was that users could temporarily cancel their subscriptions for a few months and come back when their show returns with a new season.
Fans waited for Stranger Things season 4 for about three years and the release of 7 episodes broke records. The show had the biggest premiere of all time in the history of English language shows. However, these numbers didn’t have much effect on their subscriber loss rates.
With one of the biggest shows ending, Netflix has been trying to break seasons into chunks to keep subscribers waiting for new episodes. The streamer also implemented this with Kdrama simulcasts previously. Given these changes, it is not far-fetched to imagine that Netflix after Stranger Things ends will change gears and drop its popular binge model.
“Just like they said ‘no way, no advertising,’ don’t assume that binge viewing is forever,” said Peter Csathy founder and chairman of media advisory firm, Creative Media.
For Netflix, the problem is not just the subscribers anymore. Investors are worried about the crashing stock rates since last year, dropping from $700 to $160 per share. This means the streamer needs to take steps and make changes to their core strategies like bingeing. However, the binge model has been a major part of Netflix’s core strategies, and some analysts don’t think there will be a drastic change.
“I don’t think Netflix will say no more binge watching,” says media and streaming analyst Dan Rayburn.
More content will likely not solve Netflix’s problems
Netflix is known for dropping new titles every month. Doing so helped the streamer sustain its promise of a binge model. The result of this practice is losing the quality of content over quantity so that viewers remain engaged watching other things. Csathy believes that “Wall Street will reward those that come out with a public strategy of less is more”.
Chatter also exists that Netflix would focus more on its low-price ad model. Will the streamer completely desert its binge model or will it bring in ads? Time will answer that question. Meanwhile, let us know what you are currently bingeing on Netflix.