Today, Netflix has over 130 million subscribers and this figure is increasing. However, as giants like Comcast and Disney are working on their content delivery platforms, Netflix certainly needs to wake up and be more serious about its services.
The following are some of the problems that Netflix is facing today:
1. Money Problems
The problem that Netflix is currently facing is debt. It has a whopping $10 billion of long-term debt and it recently decided to raise around $2 billion in debt to fund its content spending. So, what it needs is a well-thought-out strategy to sustain its business model over time.
2. Delivery Channel
The hardware limitations of Netflix can potentially raise many problems for the company in the near future. If it wants to protect its identity in the market, then it needs to make it easier for the customers to find the content.
3. Competition from Powerful Content
It’s no secret that Netflix has a massive content library. However, it realized a long time ago that merely borrowing the copyrights of hit TV series and movies won’t be able to take it far. This is why it started creating high-quality original content of its own. For a long time, this strategy worked as titles like Orange is the New Black, Atypical, The Mechanism, etc. performed really well and managed to give a major boost to the subscribers’ base. However, now the company’s original content strategy is failing.
It’s good that Netflix is trying to give its subscribers a large number of fresh and original TV shows. However, IPs cost a lot. It doesn’t help that the platform has competitors like Disney which now owns Fox Studio, Marvel Studios, etc., and has the rights of some of the biggest IPs like Star Wars and other classic movies. Competing with these is certainly a herculean task.
Conclusion
Considering all the points that we discussed above, it’s a no-brainer that Netflix has some serious competition now. So, the original streaming giant now needs to bring its a-game and take creative measures to fight the rivals who only seem to be becoming stronger over time. That said, there is hope and it may bounce back rather soon.
