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They claim that Netflix will be a traditional media company, and they have good reason to be.

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These are hard times for Netflix. In the last quarter, he lost at least a million followers, so he announced drastic measures to stop the bleeding, such as charging for shared accounts or a cheaper rate with ads.

Is Netflix in serious trouble or is this just another stage in its evolution?

The Business Insider website interviewed several economic experts, and the findings were interesting. Netflix is ​​becoming another of the companies promised to retire.

In its early years of growth after abandoning DVD rentals (in fact, it’s still in business today), Netflix was primarily a tech company like Google or Amazon that bet on maximum growth.

It was a time when fees were cheap and invited everyone on Twitter to share accounts.

But unlike the aforementioned tech companies, Netflix has a major flaw: it only has one kind of business. With the end of the pandemic and increased competition, Netflix not only stopped growing, but also lost subscribers.

For Julia Alexander, director of strategy at Parrot Analytics, measures such as discontinuing the entire series and release chapters every weekor introduce advertisingare “old school measurements“, what bring it closer to traditional media companies like Disney, Comcast or Warnerthan a technology company like Google or Amazon.

Andrew Hare, senior vice president of research at Magid, says the same thing in an interview with CNN Business: “With the introduction of advertising, measures to prevent password sharing, standout shows like Stranger Things with a phased release, we see Netflix becoming more and more like the traditional media company we see every day.

According to Andrew Hare, this is not necessarily a bad thing. Moving from a massive growth stage to a cash flow and income driven stage is sign of maturity. The great paradox is that in order to mature, Netflix will become the school field trip studio that was once called dinosaurs.

Netflix takes responsibility for “take media companies out of their comfort zone“, according to Zayets. But he is not going to fire them, as he promised, but is going to become one of them. Who is the winner here?

Source: Computer Hoy

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