In a strategic shift that could change the streaming landscape, Netflix has announced a new approach to its content production model: reducing spending on each film with the aim of optimizing its profits and expanding its subscriber base. This change responds to the growing economic pressures in the sector and the fierce competition the company faces.
The plan of Dan Lin, formerly vice president of production Universal Pictures, has in mind the power to create better and cheaper films, this in order for them to recover more than double what was invested in them, something that has been happening with series like One Piece and Merlina. There will supposedly be more diverse content within the company, which will make all audiences feel welcome within the platform, therefore the number of subscribers will increase.
Of course, it has become clear that large productions are going within the plans, since there are certain films that use renowned actors and the remuneration does not meet expectations, so those who will participate will be new promising stars who do not earn large amounts due to their resume. . However, the quality of the films will remain intact so that interest is not lost on the part of customers and so that the films can rise to the most viewed on the streaming page.
Netflix It hopes this strategy will not only improve its profit margins but also attract more subscribers. By producing more content with the same budget, the platform aims to increase the frequency of releases, thus maintaining the interest and loyalty of its audience. Additionally, by avoiding big spends on blockbusters, the company can experiment more with diverse genres and formats, potentially capturing a broader audience.
Time will tell if the new strategy Netflix It's a right move or a wrong move. In the meantime, all eyes will be on the company's upcoming releases and how they compare to their more expensive predecessors in terms of critical reception and popularity.
Via: New York Times
Editor's note: Netflix has always sought to save more and spend less, well, what every existing company does. Of course, their decisions, such as stopping sharing passwords, are rare.
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