The Netflix Cash Dispenser Needs The Kind Of Results That Money Can not Buy | Media

NOTetflix is ​​a multi-billion dollar programming machine that desperately needs house success. She can not count on friends to help. Last week, the streaming giant announced that it would bid farewell to the still popular comedy of its US service at the end of the year, when it was confirmed that WarnerMedia would now offer it exclusively on its competing service, HBO Max, at its launch in 2020.

friends is the most watched show on Netflix, but mainstream media companies are no longer willing to provide a commercial phenomenon that has upset their own business models.

By the end of next year, Netflix will also have lost the US version of Office, the second most popular program of its service, on NBCUniversal's worldwide streaming service, owned by Comcast, launched in 2020. Disney, which has already pulled Marvel content from Netflix in the US before launching Disney + streaming service later in the year also owns 20th Century Fox, which has moved popular shows including Family Guy, How did I meet your mother and It's always sunny in Philadelphia to American rival Hulu.

Netflix will hold to friends in some international markets, including the United Kingdom, and this is important. Subscribers outside the United States account for 80% of new listings and 60% of Netflix's total user base of 148.8 million subscribers.

Its annual programming budget of £ 12 billion should be sufficient to fill the gaps left by friends and Office but some badysts warn that apart from Strange thingsNetflix Originals' antecedents – its local content – are mediocre. "There was always an existential moment for Netflix when it just could not rely on licensed hits," says Tom Harrington of Enders Analysis. "It's a bit like now. But otherwise than with Strange things and one or two others, they really have not been able to create their own hit series. "

Despite some other remarkable characters – such as Orange is the new black and movies such as Roma – The number of persistent hits in the service is limited.

Netflix, rich in pockets, has focused on a production model of a huge amount of content. According to Ampere Analysis, it is the world's largest commissioner of new television shows in the world, but it also cancels the shows almost as fast as it makes them.

Ampere estimates that Netflix currently has 285 original television programs in production around the world and nearly 700 of its own series broadcast on the service. But his research has also shown that Netflix is ​​much more likely to cancel TV shows after only two or three seasons compared to traditional broadcasters. Original streaming shows have an average life of only two seasons.

"Netflix seems determined to drive growth in the number of subscribers through a continuous pipeline of new content," says Fred Black, Ampere Analysis. "But this is done at the cost of missing out on long-standing franchises that bring customers back year after year."

Netflix selectively publishes data that may appear impressive for some of its content, such as the recent Murder Mystery, the mediocre comedian Adam Sandler and Jennifer Aniston, who beat Sandra Bullock Bird box break the broadcast giant's record with 31 million accounts to watch in the first three days.

"They have 150 million accounts in the world, they can make every show a success," says Harrington. "What you do not see is data that shows how the display of the original content disappears quickly a few days after it is launched. Emissions disappear quickly and many Netflix are populated with largely forgotten emissions. Subscribers may be watching an original, which is probably abandoned after its second series, then they turn to content with which they have an affinity, such as friends and Officewhich makes them so important for Netflix. "

The company's strategy will come under increasing pressure as more and more private label content disappears from service.

Until now, its low-cost, high-volume model continues to bear fruit. On Wednesday, Netflix will release its second quarter results and is expected to cross 150 million subscribers (154 million), an increase of 24% over the previous year.

Investors satisfied with its growth – despite the weight of around £ 24 billion in debt and liabilities, such as programming contracts, in Netflix's balance sheet – drove its market value to £ 132 billion. And the service remains cheap compared to traditional satellite and cable TV in Western markets (if not in its new growth territories in Asia-Pacific), its most popular monthly package costing $ 12.99 in the US and £ 8.99 in the United Kingdom.

Netflix, which has a large budget for content production and licensing, apparently has an apparently insatiable appetite to continue to supply huge amounts of TV shows and movies to its service. And the obliging fans are happy to gorge themselves. According to research firm IHS Markit, a typical Netflix fan views more than 85 content per month, a one-third increase over the last five years. Over the past three years, the amount of television and film content on the UK service has almost tripled from 12,000 hours to 34,000 hours, according to Ampere.

"Sending to the producers, they say the Netflix sponsors would only partially tell them what is ironic that the hardest part of the job is spending all the money at their disposal," says Harrington. "They do more things than they want."

The juggernaut of Netflix shows no signs of slowing down.

Last week, the company signed an exclusive agreement for all Shepperton Studios, which hosts productions such as Extraterrestrial and Mom Mia!, to ensure that the more than 40 productions produced each year in the UK can be produced without delay.

It would be very useful for Netflix for many of these productions to become timeless clbadics, as competing studios and broadcasters are no longer as friendly as they have been.

Best of the band

Strange things The third series of sci-fi horror movies of the 1980s shattered Netflix records, with 40.7 million account holders watching the show four days after its release, making it the movie or most watched series in the history of the streaming service. The show is considered the flagship series of Netflix, especially after the disappearance of Room of cards. That's a commercial cash cow – there are about 75 links with the brand for its third season.

Room of cards The one who propelled Netflix to world domination. The series on a malicious American president may have lost its appeal following accusations of badual badault against star Kevin Spacey, who had been rushing out of the series. But the $ 100 million deal aimed at achieving the first two sets of high-quality political drama has turned out to be a smart gamble.

Roma The movie that gave Netflix the Hollywood credibility that society needed. Alfonso Cuarón's 1970s black-and-white drama won the Oscar for best director, making Netflix a major player in the Oscars, the last bastion of the traditional film industry. Netflix pushed some movies into the Oscar race by giving them a limited theatrical release before streaming – and used this strategy to appeal to talent like Cuarón.

The crown The lavish drama costs between £ 8 and £ 10 million per episode and has been a hit with subscribers and critics alike. Claire Foy won an Emmy Award for her portrayal of young Queen Elizabeth II.

Orange is the new black In a women's prison, with actors mostly unknown, comedy drama has won many awards. The seventh and final season of the series based on Piper Kerman's memoir will be released this month.

BoJack Cavalier The bizarre animated comedy directed by an alcoholic and washed actor who is an anthropomorphic horse launched in 2014 to mixed reviews. The following seasons cemented the series as a hit with viewers and critics alike.

… AND TWO FAILURES
Down Baz Luhrmann may have had a lot of success on the big screen, his hyper stylized style Romeo and Juliet at red Mill, but his first foray into television was a failure. With a budget of up to £ 14 million per episode Down, a revival of the hip hop foundation, was canceled after only one season.

Marco Polo The historical saga of Netflix lasted two seasons before the cap was finally removed, resulting in a loss of 160 million pounds.