Will Netflix Go the Way of Blockbuster?

Netflix the once dominant leader in CTV is quickly losing share A quick history lesson here may help to explain whyNetflix innovated in the movie rentals business by disintermediating Blockbuster years ago by mailing CDs to users They moved to a digital model and quickly took the ownership position when companies like Fox NBC Paramount Disney and others had either nascent or nonexistent streaming businesses by taking the libraries of these programmers and studios to marketWill Netflix be the next Blockbuster Did they simply wait too long to adopt and change and have now been overcome by competition Big investors are pulling away from the streaming giant and their stock is stumbling amid subscriber growth and revenue challenges If they do not quickly either find a tremendous amount of new content to keep subscribers or adopt an adsupported model to keep afloat to cover the costs of operating and content creation they might beIn the last few years while Netflix increased subscriber fees and invested heavily in new content their competition went to work to do what Netflix did to Blockbuster disintermediate them If Netflix does not pivot fast they too may be another MBA course we studyWhen you own an incredible library and are the 800pound gorilla you can sustain yourself and your growth But these days are over for Netflix because they failed to take the lead on ad models and other things when they had a clear ownership and leadership position Netflix no longer has the best library despite having some truly incredible awardwinning originals They have lost a good pool of their most watched content as Disney Fox Paramount NBC Discovery and others have launched competitive streaming solutions and adsupported models to defray costs and pulled their libraries back into their own platforms While Netflix could have been the dominant platform and adrevenue generator they too have lost this opportunity as their competition have built massive businesses while they sat idleNetflix has remained steadfast on a nonad model and if they do not act soon even that option may be too late If they see a mass exodus of subscribers their value to advertisers will diminish and they already see what has happened with the streamer39s contentThe huge and very exciting thing is that if Netflix does move fast not only could an adsupported model truly take them to another level but it will also truly transform the CTV business for the positive A successful ad model for Netflix could mean an additional 50 of adsupported supply which would not only allow Hastings and his team to truly invest and deliver incredible content but it would also likely lead to many new innovations in targeting and attribution if done wellI am huge fan of Netflix and have been for years I do however think that if this opportunity is not properly seized and done so in shortorder we will eventually be teaching about this in an MBA courseClick the social buttons to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Will Netflix Go the Way of Blockbuster?

Author

Publish date

Channel

Gabe Greenberg

FEMA and the Ad Council Encourage AANHPI Communities to Enhance Disaster Preparedness in New PSAs - Ad Council InSites

More Videos:

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Will Netflix Go the Way of Blockbuster?

Enjoying This Commentary? There's More to Love

Gabe Greenberg

Stay in the know with more from MediaVillage

TAGS:

FEMA and the Ad Council Encourage AANHPI Communities to Enhance Disaster Preparedness in New PSAs - Ad Council InSites

Cookies