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Netflix may face difficulties. Here is the reason



In a sense, the streaming service's decision to stick to this series, while irritating some subscribers by rejecting others, is an indication of the growing pain and competitive pressures Netflix faces and why You may experience problems.

To be fair, Netflix has quickly become a dominant force in the content game that Hollywood reporter critic Tim Goodman has recently described as "The Death Star of Streaming Wars." Number of legitimate concerns, question marks and challenges to the business, some of which, as you will see, are interconnected. These include:

Disney ( DIS ) will be screened at the D23 Expo, the biennial gathering of the studio, for more details on its streaming service announce . While other major studios ̵
1; including WarnerMedia's HBO Max – join the same game, Disney is bringing the most impressive arsenal of entertainment to its new company, which is set to launch in November.

Hulu and Amazon rise in class

Hulu ("The Handmaid's Tale") and Amazon ( AMZN ("The Marvelous Mrs. Maisel" While Netflix was targeting HBO in the Emmy race (which, like CNN, owned by WarnerMedia), the urge for attention grew.

Confusion about cancellations

The Canceling shows is as old as television, but Netflix has positioned itself as something other than a traditional network, and once the service has spent so much time being irrelevant as ratings (ie user data), it's understandable that customers would complain when shows they like come to an abrupt end – a by-product that depends in part on how bad Netflix is ​​publicly declaring its decision-making process.

Is Apple planning anything or seriously?

Netflix faces several competitors, including Amazon. The sheer size of Apple ( AAPL ) – whose entertainment efforts are still forming – makes it a player when it comes seriously to become an entertainment Titan , Apple has this week released a trailer for The Morning Show, the upcoming series featuring Jennifer Aniston and Reese Witherspoon.
  & # 39; 13 reasons why & # 39;

The Volume Question

As Goodman noted from THR, a key attribute that Netflix offers is a wide range. But how well can this volume compete with high profile franchise companies ("Star Wars", "Star Trek", "Marvel", DC) that are being used to drive new and emerging streaming projects?

Own Trading with Studio

has Netflix Partly content could be bought, as this was the biggest and one of the few games in the city. The studios are now trying to establish their own services by transferring their program libraries to them.

Increasing Costs / Pricing

If Netflix has to spend more on content sourcing (see previous reason), it will reduce its profits. But to raise the price of the service to offset the risk of subscriber loss. This happened in July, when the company declined for the first time in eight years in the US, temporarily plummeting its stock.

Wall Street

Netflix may need to take a long-term view to position itself against all these new competitors. But will investors be patient when profits collapse as the company pursues these goals?

The film illusion

Netflix invests heavily in the film business and was also keen to play along on the awards stage. It remains to be seen, however, whether this strategy is justified. It has already been pushed back by the film industry, where some (especially Steven Spielberg) have questioned whether such films should really compete with traditional cinema releases.

Live TV / Advertising

Live TV remains one of the ad's biggest drivers, but it's an area Netflix did not enter. However, it has flirted with advertising and has so far resisted the attraction of these dollars, which would make the relationship with subscribers more difficult.

The Talent Trap

The search for hits inspires companies to get involved in winning big deals. Name producers and talents, including Netflix's contracts with Shonda Rhimes, Ryan Murphy, and most recently the team behind Game of Thrones. Investing heavily in talent can be a trap – new voices may be pushed out.

They do not like you. They Really Dislike You

Netflix has disheveled the plush of entertainment companies on their way to building their empire. When the service falters or shows serious signs of weakness, its competitors are ready to report – and aggravate the associated PR issues.


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