Netflix still has a strong hold on the streaming market, but competition is ramping up as well. At this rate, it looks like the company is going to face some serious issues if they want to stay relevant through 2019, and we’re already seeing some signs of the downfall of Netflix in some markets. On the bright side, it also looks like the company can do a lot to save itself, but they will have to work hard to adapt to some of the recent changes in the market.
One of the most important factors Netflix has to deal with is attracting new subscribers. Market saturation has reached a point where most people who would be interested in having a Netflix account probably already have one, and it’s going to get more and more challenging for the company to draw new members in.
At the same time, their prices have been going up over the last few years, which has further driven some people away from the service. It will be interesting to see if Netflix manages to keep up.
Capturing Viewer Attention
There is also much more competition to Netflix all over the market right now compared to a couple of years ago, and the situation is getting worse and worse for the company in this regard. Many have decided to try their hands at the streaming game with varying degrees of success. But we’ve already seen several companies that appear to be operating in a very promising manner, and will likely bring some serious competition for Netflix in the future.
Whether the company will manage to live up to people’s expectations in this regard is hard to say, and they certainly have a lot to deal with right now. Rumors indicate that Netflix might be considering alternative business models as a way of dealing with the situation, but we’re yet to see if they have any plans on that front.
Increasing Production and Licensing Costs
Last but not least, cost of business has been going up for Netflix and similar companies at a steady rate. Producing new content has been getting costlier over time, while licensing it from other networks is also becoming an increasingly more expensive option. Some networks have also gotten more reluctant to allow these kinds of licensing deals in the first place, as they have started to see the huge competition that Netflix presents for them. As a result, the company is dealing with increasing pressure from multiple sides, but no viable way of relieving it.
It will be interesting to follow the progress of Netflix in the near future and see where the company goes in a few years, because at this point, anything can happen. Many were convinced in its solid position a few years ago, but things have changed fast. Right now, it’s hard to make any accurate predictions about the way the streaming market will evolve in the coming years and what might happen not too long from now.