The future of Netflix is at stake.
The news that subscribers are looking to downsize, rather than upscale, their streaming video subscriptions—which lands just months after afound nearly half of consumers report feeling overwhelmed by the number of streaming services available—could be troubling for the sector as a whole. As newer players like HBO Max, Disney+, Paramount+, Apple TV+, and others enter the fray, viewers are going to have to make choices about which services are the most essential.
Yet, instead of filling out its catalog, Netflix is trying to diversify beyond video. Like, for example, beefing up the staff of the gaming service it. “They’re going to pour money into branching out into different types of content to be as much of a four quadrant service as they can,” says Alexander, meaning they’re targeting not just men but women, and not just those under 25 but those over 25 too.
With 75 million households subscribed to Netflix in the United States, Alexander believes that the service is close to its peak in the country when it comes to adoption. “What you’re really trying to do at that point is to reengage customers who may have left to subscribe to Paramount+ for a month or whatever it might be,” she says.
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