The Fall of Netflix
Over the last decade, people of all ages have been raving over Netflix. Whether you’re a teenager who’s “Netflix and Chilling” with someone else, or an adult that has been binge-watching the latest hot-topic thriller or the show that reminds them of their childhood — everybody was watching Netflix. It was a simpler time, because there wasn’t really another option for streaming shows or movies. Now however, an issue has arisen that is throwing Netflix to the side, and allowing others to take its place.
Due to other platforms such as Hulu, Disney+, Amazon Prime Video, YouTube TV, and many, many more, Netflix has been forced to raise the price of their streaming service, from the original $8 a month, to the now much steeper $13 a month. Due to this, Netflix has lost a large portion of its users to other, cheaper streaming services. Since Netflix is losing viewers, the company begins to lose income, which causes it to have to raise its prices. This then turns into a cycle, that will constantly continue.
Another reason Netflix continues to have to raise its prices, is to account for the billions of dollars of debt it has racked up. It has been reported that Netflix accumulated more than eight billion dollars of debt in 2018, and the raise in prices can also be considered a supplement to try and deter that large sum of money. People love the show Friends, but fail to realize that Netflix had to pay one-hundred million dollars to keep the nineties sitcom streaming for another year.
However, the raise of prices isn’t necessarily always a bad thing. Another reason Netflix is raising their prices, that people don’t necessarily focus on, is so that the company can have enough money to continue to produce their own original shows and movies. Years ago, Netflix stated that there was going to be a time when most of their content was going to be primarily their own original titles, and I remember thinking that there was no way that could be true. However, skip ahead to present day, and some of my favorite shows just so happen to be Netflix original titles. People fail to realize how much it actually costs to make these shows and films, which could be one explanation for why the prices continue to grow. People want more seasons of their new favorite shows, however, Netflix just can’t afford it. With the raise of prices, however, Netflix is able to match the demand for their newest titles.
It is believed by most that if Netflix wants to remain successful, then they should return to the prices they previously had. Although that would mean Netflix would have less original content than offered now, the payout for Netflix would ultimately be worth it. More people would purchase Netflix if prices were reduced again, and Netflix could just fund the shows that are doing extremely well, instead of every single show that is proposed to them.
It is unclear whether or not Netflix will continue to decline in viewership, and be forced to raise prices again, or if Netflix will be able to maintain its current status of being the largest streaming service to date. Several of the investors have stated that they are not worried about the billions of dollars of debt that they are in. The only way we can find out is by watching and waiting. With more than a handful of new streaming services arriving within the next year or two, the future is uncertain for societies binge-watching needs, but either way, get your bank account ready for what’s to come, because it won’t be cheap.
