Netflix this year unveiled a slew of upcoming changes to its platform, including plans for its first ad-supported tier and preliminary features to curb account sharing. Alongside those changes, the streamer could potentially adjust its release-all-at-once model for TV shows, per a Puck report from last week.
To be clear, the report isn’t saying Netflix wants to ditch the binge-watching model for weekly releases. But Puck’s Matthew Belloni points out if Netflix were to offer a more flexible release model, it would make sense in a competitive streaming environment.
“Netflix says there’s no hard evidence that week-to-week episodes reduce subscriber churn, but the Netflix churn rate has been inching higher, and it is now the only streamer with a default all-at-once strategy,” Belloni wrote.
The streaming service lost around 970,000 global subscribers in the second quarter. Netflix anticipates adding 1 million net subscribers for Q3, as it preps for the launch of its lower-cost, ad-supported tier.
“The others [services] mix and match, with an emphasis on drawing out seasons to keep customers subscribed,” Belloni continued. “In a competitive landscape, that’s smart.”
Amazon Prime Video and HBO Max, for instance, recently kicked off premieres for “The Lord of the Rings: The Rings of Power” and “House of the Dragon,” respectively – both of which are airing weekly episodes. Amazon and HBO Max touted record premiere viewership for each show.
Netflix has experimented with a hybrid binge model for the latest season of “Stranger Things,” releasing the first seven episodes on May 27 but holding off the final two episodes until July 1.
“Stranger Things 4” amassed 1.15 billion hours streamed in its first 28 days, according to Netflix.
Netflix’s fourth season of “Ozark” was also split into two parts, each containing seven episodes. The first part came out on January 21, while the season’s second part released on April 29.
Belloni added, “Netflix customers may like the choice to watch all episodes at once for every show, but they’d also like the service to cost $1 a month and deliver butterscotch ice cream sundaes, and that’s not a viable long-term business.”
With consumers increasingly finding more options for content, subscription-based streamers need to think about how to reel in and retain their viewers. Recent Samba TV data found viewership levels for new streaming shows typically peak within the first two weeks of release.
Another way streamers want to reel in new subs is by building series franchises. Disney is reportedly interested in securing global streaming rights for “Doctor Who,” which would complement Disney+’s already-expansive catalog of “Marvel” and “Star Wars” titles.