Is the Netflix riot model doomed?

In their latest earnings report Netflix showed that he first suffered subscriber loss more than a decade, warning that he could lose another two million subscribers by the next quarter.

Against this backdrop, it looks like the streaming giant’s model – an “all at once” TV show release strategy – is being tested again as it looks for ways to better retain its 222 million subscribers, according to a new report. CNBC report.

“On services like Disney+, HBO Max, and Hulu, individual episode releases keep audiences hooked for weeks, which means less churn from month to month. Meanwhile, Netflix subscribers can watch the full season of the show they are interested in and then leave the service at the end of the month.

“Netflix has played with various release models, mostly due to pandemic-related production delays, and noted that splitting the seasons into two can be a “satisfying long-term experience” for subscribers. However, the company has not given any indication that it will stop releasing all episodes of the scripted series at the same time. Instead, decisions will be made on a case-by-case basis,” he continues.

CNBC noted that Netflix has experimented with releasing some reality shows weekly, but this strategy has not been used for scripted series. “We deeply believe that we want to give our subscribers choice in how they watch,” Peter Friedländer, Head of Scripting for Netflix US and Canada, said earlier this month. AV club. “And so allowing them to watch these scripted shows for as long as they want when they watch it is still fundamental to what we want to deliver,” he added.

However, Netflix has divided seasons into specific shows, with popular programs being the main examples. Ozark as well as very strange things. “Before, there was a practical reason for separating seasons, which was delays due to Covid and all those projects that led us to separate some seasons. But we found that fans love both,” co-CEO Ted Sarandos said during the company’s earnings announcement in April. “So being able to share it gives them a really enjoyable binge experience for those people who want that really satisfying long-term binge,” he continued.

Meanwhile, Netflix continues to engage rampant exchange subscription passwords. The company estimates that more than thirty million households in the US and Canada share passwords, and another 100 million households do so globally.

“Our relatively high household penetration—given the large number of households sharing accounts—combined with competition creates headwinds for revenue growth,” Netflix explained in its quarterly shareholder letter. “Account sharing as a percentage of our paid membership hasn’t changed much over the years, but combined with the first factor, this means it’s harder to expand membership in many markets — an issue that has been hidden due to our rise in COVID.”

Ethen Kim Lieser is a Washington State Finance and Technology Editor with positions at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Subscribe to him or contact him LinkedIn.

Image: Reuters.

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