Chapter 1: The Changing Landscape of Streaming

For nearly a decade, I've been a loyal Netflix subscriber, having signed up in December 2012. Initially, my enthusiasm for the platform was lukewarm. I recall discussing it with a friend who praised Netflix's “extensive library of classic films.” I acknowledged that there was usually something appealing to watch among the vintage selections, yet I often contemplated canceling my subscription without following through.

The pivotal moment arrived in February 2013 with the debut of Netflix's original series, House of Cards. This marked a turning point for me, and by the time Orange Is the New Black premiered in June of the same year, I was fully engrossed in Netflix's offerings. Since then, I have remained a steadfast member, never once considering a cancellation, even as I added other platforms like HBO Max, Disney+, Apple TV+, and Amazon Prime Video to my streaming options.

However, even the most dedicated fans are starting to notice signs of trouble within Netflix. In 2022, the platform experienced its first loss of paid subscribers in a decade. As reported by Forbes, Netflix still leads the streaming market with approximately 220.67 million global subscribers as of June, though Disney is closely trailing with 205.6 million subscribers across its bundle of services (Disney+, Hulu, and ESPN+). HBO, HBO Max, and Discovery+ collectively have 92.1 million subscribers, with plans for consolidation into a single platform.

In terms of global streaming market share, Netflix holds 27.3%, followed by Amazon Prime Video at 24.3%, and Disney+ at 18.2% (excluding Hulu and ESPN+). HBO Max and Apple TV+ come in at 7% and 6%, respectively, according to 9to5Mac, citing research from JustWatch.

Here's a deeper look at Netflix's challenges with a video that discusses how Netflix is struggling on Smart TVs.

When comparing Netflix's position to that of Spotify in the music streaming industry, where Spotify commands a 31% market share and boasts 406 million active users, the landscape appears even more daunting for Netflix. In 2022, Spotify had 180 million subscribers while Apple Music trailed with 78 million. Such numbers illustrate what it truly means to lead a market.

Yet, as a devoted viewer, my primary concern revolves around the content itself. It's understandable that users who initially joined Netflix for its Marvel offerings are now migrating to Disney+. Many people are faced with tough choices, having to select services based on a handful of preferred titles.

This brings me to the frustration I feel toward Netflix's recent email notifications, such as the one titled “Here’s what’s leaving Netflix soon.” While I appreciate the heads-up, the way it is presented feels disingenuous. Phrases like “We’re making room for tons of new titles” suggest that Netflix has limited storage capacity, which is misleading. This attempt to mask a negative situation (the removal of titles) as a positive development is disheartening.

Imagine if Spotify had adopted a similar approach when Taylor Swift removed her music catalog in 2014: “We’re making room for tons of new songs.” The reality is that Swift simply left the platform.

To me, this type of communication is a more telling indicator of Netflix's struggles than the mere loss of subscribers. When a company reaches Netflix's scale, stunted growth is an inevitability. The critical factor is how Netflix chooses to respond to these challenges. Some industry analysts, like Matt O’Neill from whatNerd, suggest that other streaming services have clear visions that set their content apart, whereas Netflix’s legacy as the original streaming service is becoming stale.

What’s the strategic direction here? The company's venture into gaming has largely gone unnoticed by users. While diversification is a sensible goal, can Netflix realistically compete with established gaming entities like Microsoft, Sony, Nintendo, Valve, and Epic Games, as well as tech giants like Apple and Google?

In my view, Netflix should focus on solidifying its presence in successful niches, such as anime and international films and series like Squid Game, rather than attempting to chase after every trend. Prioritizing quality over quantity, akin to Apple TV+, may serve them better.

Until they establish a clear long-term strategy, Netflix should refrain from sending out personalized notifications about departing titles. Such messages only amplify my urge to reconsider my subscription.

Here's another video that dives into the implications of Netflix's current trajectory.

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