If the stories are true, then Netflix has a debt problem. And we all know Spotify hasn’t turned a profit and neither has Pandora. Meanwhile, Soundcloud is for sale or closing up shop, depending on which stories you believe.
Will Netflix survive long enough to turn a profit?
I hope so. Their own catalogue keeps growing but does the money spent on original content turn into profits or is their debt due to infrastructure and network costs. The ISP’s charge Netflix (and all the other streaming providers) a lot of money and then they charge us to you use the internet and access Netflix. It’s a double dip of epic proportions. Netflix also has investors and shareholders that it needs to placate.
Radio is a perfect example of how it went from a format that broke acts and drove culture to a format that focused on profits to please shareholders.
Gyms make their money from customers who pay and never use the facility. However, the customers who are at the gym for 4 hours a day end up costing the Gym in the long run.
Is this the same deal with Netflix?
Streaming services might have 100 million subscribers, however they might have only 2 million subscribers accounting for 95% of the usage.
Then again it’s been proven that the type of user you want is the person who uses the service daily instead of once a week.
Netflix lives in the current world, where everything’s instantly available, just a click away. But they have the same issue every other service and artist has. People can’t slow down their lives long enough to immerse themselves in their content at a rate they would like. If Netflix has this problem, imagine every up and coming musician.
And sometimes it doesn’t matter what you do. If someone doesn’t want to hear from you anymore, you’ve lost the ability to reach them. For a brief time, an artist or a service might have a person’s attention. However attention is fragile. In a monoculture, when we had 5 channels and gatekeepers, attention could last longer. However it today’s world, it’s gone within an hour, sometimes even a week.
Attention is fragile. We give it and then we take it away only to give it to something or someone else.