Comment Re:FTFY (Score 4, Insightful) 131
struggles to deliver profits and customer lock-in
Nah, it's not even that. It's same thing that's ruining many products and services -- Wall Street's insistence that "endless growth" is possible.
- Endless growth in customer base -- by adopting anti-password sharing stances to pressure new account signups whenever possible.
- Endless growth in revenue (per customer) -- by selling advertising access and user data to aid targeting of ad campaigns to paying subscribers.
- Endless growth in profits -- by almost-yearly price increases, and reducing operating costs in ways that are detrimental in service quality.
People keep bringing up old Netflix. People were fine paying the rates then and not-pirating. There was a better selection, catalog content to chase the "long tail" of consumer demand, etc. Was Netflix profitable then? If yes, they should be profitable now, but the issue was all the content providers stopped being satisfied with their slice of the pie. "There must be some way we can get more of the revenue for ourselves here!"
- And so they started asking for more for licensing rights (and Netflix starts looking into more original content to reduce their dependence on studios) --- resulting in shittier content and quick pivots to drop anything not top-performing, despite impact on customer satisfaction.
- Then those studios started wanting to start their own services, and cut Netflix out of the deal entirely (now the content is splintered and users are getting pissed having to jump between services to view things, let alone the monthly costs multiplying).
- This follows with them then increasing their own services' subscription rates to consumers.
Every step advancing because shareholders said "there must be some way for this company to make more money now than last year". Whether they were making a healthy profit before or not isn't important. It's never enough.
If Netflix wasn't profitable back then, when they had such a better selection, better pricing, customer goodwill, and so on... then maybe this whole streaming service as a business idea was a failed business idea to start with. With all the anti-consumer moves now they certainly aren't improving the prospects.