October 5, 2022

Netflix

disruptive


flow

The company, whose innovative strategy and rapid growth has brought the entertainment industry back together, faces some challenges of its own. Having lost first subscribers earlier in 2022, the company’s share price has plummeted.

Although longtime Netflix bears like Wedbush analyst Michael Pachter have been somewhat vindicated by this development, its influence has spilled over through the company. The layoffs hit employees during the spring — first, at Netflix’s Tudum site, and then in two more rounds that affected hundreds of full-time employees and contractors.

With Disney reporting stronger results, including subscriber growth in the first quarter, Netflix found itself in a vulnerable position — and its problems sent shock waves through the Hollywood creative community. Writers, producers, agents, and more stakeholders spoke to Insider about concerns that the company might reduce its creative ambitions, production budgets, and content spending along with its workforce.

Read more about Hollywood insiders’ fears that Netflix’s golden era of creativity is over after explosive growth led to a ‘quality control issue’

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But Netflix moved quickly to reimagine that its dominant position in Hollywood was in jeopardy. In addition to announcing plans for an ad-supported tier, due to launch later in 2022, the company has also begun work on developing live streaming capabilities.

Read more about who Netflix might hire to run its advertising business

Netflix even bid for US rights to Formula 1 racing, its first foray into live sports (Disney’s ESPN eventually won the bid).

In May, Netflix launched one of its most ambitious live events to date, a massive comedy festival that featured artists from Dave Chappelle to Amy Schumer at venues across Los Angeles — it was a massive logistical project that promoted the Netflix brand and also highlighted the Streamer as a supportive creative home for top comedians, even controversial ones.

Read more about how Netflix organized its massive 11-day comedy festival with over 300 stars

The company also published a new update of its popular cultural note, emphasizing its commitment to both representation and freedom of expression for artists — principles that can sometimes conflict, according to one expert. “Sometimes content can harm individuals and communities,” said Y-Vonne Hutchinson, co-founder and CEO of ReadySet, a niche consultancy focused on diversity, equity and inclusion.

Read more about how Netflix’s reformed cultural memo could cause conflict in the company

As the competition for the influx of subscribers intensifies, Netflix has also expanded its appetite when it comes to new shows. Insider reviewed internal Hollywood agency documents that revealed some of the series on their 2022 wishlist: female “Jack Ryan,” her own version of “New Girl,” and “American Idol”-style reality contest.

Read more about what Netflix is ​​looking for in its next series, according to leaked agency documents

On Netflix, the turmoil begins with its content

Just a decade ago, Netflix released its first original series, the Norwegian mob drama “Lilyhammer,” but at the time, the streaming company challenged the entertainment industry with its global approach to content creation, marketing and distribution.

Netflix, which started as a DVD by mail company, is now the global leader in streaming subscription streaming entertainment, ending 2021 with 222 million paid members. The company’s success in live streaming has propelled legacy media companies including Disney and Warner Bros. Discovery and NBCUniversal have to pursue direct-to-consumer strategies of their own.

And Netflix didn’t stop there, in recent years it has expanded its reach to include publishing, live events, gaming, and other nearby businesses.

Read more about how Netflix’s video game strategy began to take shape

Headquartered in Los Gatos, California, Netflix has always been product and data driven. This put it ahead of the rest of Hollywood when it comes to creating consumer-facing experiences.

For example, after years of providing almost no data on viewership, Netflix has unveiled a list of the most popular shows and movies on the platform in the US and around the world. In 2021, Netflix went a step further and introduced the 10 best websites to share information about its most viewed titles. Although what is presented is just part of the whole picture of how people consume content on the platform, the site reveals more data than any other streaming device provides.

Read more about why new viewing data gives Netflix an edge over Disney+ and other players in the streaming wars

How Netflix disables the TV screen for the first time and switches to merchandise and more

When Netflix first arrived in Hollywood, its competitors appreciated it as a platform for their long-forgotten shows and movies. The checks Netflix wrote about bookstore titles in those early days helped boost revenue at the studios. But it soon became apparent that the company’s appetite for content would include more than just licensed programming.

The broadcasting company launched original programming with a focus on prestigious projects from iconic creators – series such as “House of Cards” and “Orange Is the New Black” came to define the roster of originals. But over the years, Netflix has systematically moved to conquer every major genre, from documentaries to stand-up specials to reality TV to YA programming.

The first reality show launched on Netflix in 2017 – “Ultimate Beastmaster” was a global competition series set in the context of “American Ninja Warrior” that put contestants through complex and exhilarating obstacle courses in the shape of a true beast. Netflix has since minted reality works from “Love Is Blind” to “Sell Sunset.”

Take a look at the planned presentation that sold Netflix on ‘Ultimate Beastmaster’, the first live-streaming reality show

The company has also made a significant investment in original programming for children, in an effort to create loyal viewers and possibly reduce subscriber momentum. But like its rival Disney, Netflix is ​​increasingly leaning toward the current IP for children’s shows.

“Real success in the children’s business takes many years to build an audience. It takes 5, 6, 7 seasons to get sea legs and then be able to sell backpacks at Walmart,” said former Cyma Zarghami. Nickelodeon president who now runs children-focused media company MiMo Studios.

Read more about how Netflix and other streaming companies are battling to find the next ‘CoComelon’ amid the streaming war for kids’ content

Today, the broadcaster makes and distributes hundreds of original titles each year, lending global hits from shows including “Stranger Things” and “Bridgerton” and movies from “Red Notice” to “Don’t Look Up.”

Netflix has also upended the notion that international programming does not resonate with American audiences, turning South Korean thriller “Squid Game” and Spanish drama “Money Heist” into two of its most-watched shows.

Read more about the reasons why ‘Squid Game’ has become a global phenomenon, according to a Netflix marketing executive

Netflix has been able to increase international production because it has kept tabs on global content trends for years. After slowly moving into a few markets outside the United States, in 2016 the company launched a large-scale expansion, simultaneously making its services available in 130 countries. It now operates in every country except China, North Korea, Russia and Syria.

Read more about how Netflix’s Squid Game is part of a robust international television strategy that is far ahead of competitors, especially in South Korea.

In September 2020, Netflix — led by co-CEOs Reed Hastings and Ted Sarandos — promoted longtime CEO Bella Bagjaria to president of global television. She previously oversaw and promoted the company’s local language originals, which led to the departure of Netflix veteran Cindy Holland, and indicated that the company would prioritize international programming moving forward.

Now, all of Netflix’s competitors – including Disney+ and


HBO Max

Increase their efforts in global programming.

Watch our full interactive chart of Netflix’s top leaders

Netflix expands into publishing, events, and other consumer businesses

As Netflix’s constellation of original IP grows, the company has been looking for new ways to boost fans around the world, including large-scale live events like Tudum, which airs to audiences globally in September 2021, and the more eclectic The Queen’s Ball: The Bridgerton Experience. She tours the United States and Canada.

Read more about how Bridgeton’s live events promote a broader strategy of subscriber retention and audience building

Netflix’s first attempt to adapt its IP to the physical world was through merchandise. “Stranger Things” and “Squid Game” cassette players are now selling tracksuits at Walmart in just another example of how it’s looking to create touchpoints with fans.

Read more about Netflix’s partnership with Walmart to sell ‘Squid Game’, ‘Stranger Things’ and ‘Ada Twist’ products

Netflix has also moved aggressively into publishing, hiring former employees of Condé Nast to create random site Tudum, which posts news about upcoming Netflix titles and interviews with stars.

Read more about how Netflix is ​​hiring Condé Nast and Time Inc journalists. To build a ‘fandom engine’ to market its software

With Tudum, Netflix now competes directly with fan sites like Whats-on-Netflix.com, which obsessively track the comings and goings of programming on the service. The broadcast also conflicts with children’s publications such as Highlights with Netflix Jr. magazine, which will ship to viewers’ homes with young children. She handles Hollywood trade publications such as Variety and The Hollywood Reporter with Queue, which are edited by Vanity Fair alum Krista Smith and pushes award contenders with photos and profiles.

Read more about the “Netflix stan” who runs the What on Netflix website

Awards are an area in which Netflix has made a particularly huge investment. Although its studio rivals also spend lavishly to give their films and TV shows the best shot at getting Oscars and Emmys, Netflix has gone a step further. She has very visible billboards all over Los Angeles and hosts premieres at her purchased theaters there and in New York.

Apple TV+ has overtaken Netflix to become the first streaming company to receive a Best Picture Oscar – with its 2022 win for “CODA” – a sign of how much Netflix continues to be seen as an intruder by many in Hollywood.

Read more about how Netflix built Hollywood’s noisiest awards process in its quest for the Best Picture Oscar

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