RT
@DKThomp: New pod: THE NETFLIX CRISIS ISN'T WHAT IT SEEMS
I talked about the entertainment story of the moment with
@MattBelloni
Take 1: Netflix is having a bad, bad year. The stock is down nearly 50 percent. The company has laid off more than a 1,000 people this year, including its chief content officer and its head of film.
Take 2: Wait. Actually, Netflix is objectively having its best year ever. It has decidedly won the streaming wars, it has a lower churn rate and higher LTV than any streaming competitor, global subscribers are growing, and its operating margin is higher than ever.
Take 3: Netflix won the last war. That is, it perfected a 20th century business model of making traditional video entertainment (docs, reality shows, TV series, film) and serving millions of at-home customers. But the final boss of video entertainment is not 20th-century TV but 21st-century TV—YouTube, TikTok, and infinite video scrolls, which are not only commanding more and more of our daily attention but also do so with significantly lower upfront production or licensing costs. As attention fractures, it becomes harder to create monocultural moments—what once went by the name "hits."
I, personally, think Netflix makes too much slop. But one household's slop is another household's 8pm downtime. The problem isn't quite that Netflix forgot how to make hits but rather than it's a hit-making enterprise in a world where monocultural moments are getting structurally harder to make with every passing decade.