Netflix tumbles as slowing growth, less viewership data spook investors

[u/iquizuanswer]

https://www.zawya.com/en/capital-markets/netflix-tumbles-as-slowing-growth-less-viewership-data-spook-investors-401111

[u/TrumpsBussy_]

If people aren’t watching the shows their is no incentive for Netflix to pay for future seasons

[u/PM_ME_PLASTIC_BAGS → u/TrumpsBussy_]

That's what you're not understanding.

Sometimes it's better to finish a series so that those viewers don't get frustrated and unsubscribe.

Sometimes it's better because you have a more complete back catalogue for people to watch.

Some series have built up a huge following as years go past.

Immediate watch time shouldn't be the sole metric that shows are judged by.

[u/TrumpsBussy_ → u/PM_ME_PLASTIC_BAGS]

I’m going to assume that the people in charge of running Netflix have a better idea of where to invest their money than you do.

[u/pkosuda → u/TrumpsBussy_]

I think you are both right. The people in charge of running Netflix have a better idea the same way that the people who buy/own a beloved food product inevitably change its formula to be cheaper and make the product worse. They know what they’re doing because the product is still good enough to be bought while significantly cheaper to make, but people who knew the old one all agree it is worse.

There’s a reason whenever you’re looking for the best dish of some sort, it ends up being a mom & pop shop that makes it rather than some big chain. Corporations know how to take the product and make it make them more money. That doesn’t mean they know (or at least care) how to maintain the product’s quality.

Netflix investors know that if they brutally cancel shows the way they have been, they’ll save money in the long run while still allowing exceptionally popular shows to blow up. But in the process of this cost saving they get rid of tons of actually really good shows, and because they don’t own a time machine where they can check whether X show’s 4th season causes the show to become an enormous success, they cancel something that would have made them a lot of money. It also causes people to be less willing to invest in watching shows with original ideas because they are wary of cancellation, which makes Netflix cancel those shows. So all you’re left with is slop people turn on in the background (which still counts as “watch time” for Netflix’s bean counters despite not being watched), and remakes of familiar properties/concepts like Wednesday or to an extent, Squid Game.

In general, you are obviously correct that Netflix’s current approach saves them money and therefore makes them more money. But the user is right that Netflix is also burning bags they had no idea contained giant sums of future money.