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Published in 12 Oct 2022
54

Here is why Netflix transforming

https://epic.club/suggestions-ideas/netflixAs a product manager, I can't get over this news: Netflix will launch a cheaper ad-supported subscription at the end of 2022.

Why do they do it? I'll tell fortunes on coffee grounds:

– users have less time (they need to work);
– users have less money (inflation and crisis);
– users have less choice (everything has already been looked at for covid, but there is no fresh one).

Well, streaming is dying, but what's interesting here?

And the interesting thing is that it seems to me that with such a transformation of the business model from such a giant as Netflix (and this is real, a very big event), comes ... the beginning of the end of the subscription model in the form in which we now see them in text/streaming/music industries.

The reason is simple - the value and income from content and subscriptions is spread over the entire product and all of its content, at a time when users can and want to pay and support only the content / authors that they are interested in.

Actually, this is exactly how advertising on YouTube works: targeting by interests (video) + targeting by geo and demo (audience = customers), scaling with an increase in the number of views from subscribers (audience). A great example of an "endless" growth loop of metrics and money.

Source: https://epic.club/suggestions-ideas/netflix

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