Netflix is now following in the footsteps of the rest of Hollywood

• Netflix lost almost 200,000 customers in the first quarter of 2022.
• The company is moving away from its frenzied release schedule.
• A new goal is to develop “larger movies” at a less “gluttonous pace.” 

Because Netflix had a near-endless source of cash and no need to impress distributors or theatres at the time, it could afford to create more diverse content to try to secure people’s monthly memberships. It could also explain the hefty expenditure by arguing that it was striving to better understand customers by analysing viewing data in a way that its competitors did not.

The entertainment sector was supposed to be revolutionised by Netflix. Instead, it’s resorting to the same techniques that helped its competitors become billions, but without the lucrative franchises, fandoms, or vast back catalogues.

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In order to entice more sceptics of paying money in the Streaming Wars, The web is already working on a new ad-supported subscription tier. Peacock and Paramount Plus already offer similar bundles, while Disney Plus and HBO Max also plan to launch ad-supported options.

Netflix is also cracking down on password sharing, which it claims is used by over 100 million households to avoid paying for additional subscriptions. Previously, the company appeared to ignore — and even implicitly condone — password sharing. Meanwhile, HBO Max includes built-in safeguards against password sharing.

On the other hand, is chasing the competition the most in terms of how it decides which films to make. Netflix’s CEO Ted Sarandos stated on the company’s most recent earnings call that the company would focus on “big event films,” and the company has spent the last few months ruthlessly eliminating departments such as animation (which is typically more expensive to produce and has lower returns), original independent features, and family live-action films.

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Two of those categories, animation and family live-action, are profitable for Netflix’s major competitor, Disney. It’s almost as if the website is following in the footsteps of many other film companies in avoiding direct confrontation with Disney in areas where the latter has traditionally flourished.

Netflix, on the other hand, may find it difficult to distinguish itself from its competitors, given that Disney is by far the largest producer and distributor of films in the United States, has a near-monopoly in theatres, and has a library of some of the most well-known properties in cinema history. It’s also feasible that organising itself in a more Hollywood-like manner will be ineffective. When Bob Chapek took over as CEO of Disney, he immediately set about revamping the company to make it more like a tech company.

Netflix’s attempt to bring the internet ethos to Hollywood may not have been a huge success, but its competitors can’t say the same.