Netflix has a TV-show problem

Dwayne Harris   ·   About 260 words

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Insider posted an article yesterday about Netflix and their strategy of cancelling shows before they get the chance to find their footing.

I remember seeing another article from Wired last month with more information about Netflix’s thinking:

Shows can have a dedicated fan base, like Altered Carbon and The OA, but they might not have been successful enough to have amassed a Netflix-wide viewership. Tom Harrington, an analyst at Enders Analysis, explains that the ideal show for Netflix is one where the large majority of people who subscribe to Netflix will watch it, and not just one dedicated fan base. Something like Stranger Things can bring in new audiences, and maintain current ones, which is why it keeps getting renewed.

Netflix, like most Silicon Valley companies love gathering and analyzing lots of data and using it to know exactly how to make themselves successful each quarter and keep that stock price looking good.

But what’s good for the quarter isn’t what’s good for long term health. From the Insider article:

TV lovers in these fandoms can only be burned so many times before they stop investing. Why should a Netflix subscriber spend 10 hours watching a new show if there’s a decent chance they’ll never see it end?

It’s definitely interesting watching these companies back themselves into corners over and over chasing short term growth.

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