How Netflix's stumbles are causing rivals to rethink the streaming business

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Netflix's first decline in subscribers in a decade has raised questions about the viability of the streaming business model.

Password piracy and account sharing is expected to cost streamers and pay TV providers $12.5 billion in 2024, according to Parks Associates.

Netflix customers have grown accustomed to watching shows without commercials. But some might be willing to put up with ads in return for a subscription offered at a lower price, which Netflix Co-Chief Executive Reed Hastings said is now under consideration. The streamer said it was testing features that would allow its subscribers in Chile, Costa Rica and Peru to add up to two users outside of their household, for an additional $2 or $3 per account.

“We’re committed to meeting customers where they are and delivering content in the way they want to watch,” Jennifer Salke, head of Amazon Studios, said at Amazon’s recent presentation to advertisers in New York. “You have to be able to sell your shows,” said a veteran TV executive who works for one of the streaming companies. “One company can’t take on all of the cost of these shows.”

Such measures are a response to a savvier consumer, who can opt out of streaming service with a few clicks, a far cry from the days of waiting for a cable company employees to show up at your home. “What the behavior is of those younger generations is they’re subscribing to the service to get that original content, they’re watching it, then they’re canceling that service and moving off,” Westcott said, adding the average household has four video subscriptions. “What we see is, people are switching in and out all the time. That’s a very costly model for the streamers.”For example, Netflix has been investing in mobile games and has acquired several game-related companies.

 

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Go woke go broke!

forced content and narrative!!. To do that you need to delete history.

Its viable as an oligapoly..like internet providers as an example - right now there are too many of them cannibalizing each other..

Netflix’s content has always sucked. And now that Woke is played out, people are not going to spend their Biden-devalued dollars on a substandard product. WokeIsDead

Glad I bought ExxonMobil instead of Netflix. It's up 50% and pays a 4% dividend.

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