It’s all about the content platforms, but what about the consumer?
by Leagas Delaney
Netflix suffered its first major loss of US subscribers in its Q2 earnings call and many blamed pricing. While pricing will have had an impact on this, it's content slate is the biggest battleground.
In its inception, Netflix solved a problem for consumers by creating an on-demand content delivery platform catapulting them to market leader status. 2019 sees the launch of competitor delivery platforms where the technology is no longer the differentiator.
Netflix is now up against the likes of Disney – the owners of everything from Star Wars to Marvel - huge franchise behemoths, and Netflix has little of that ilk in comparison.
When Disney, HBO, Warner and Apple hit the market it’s going to do so with real force, while simultaneously taking its content off Netflix.
At present, the loser is the consumer. This platform diversification is leading to a fragmented market, and a move away from the single access point Netflix created. Finding and choosing content is becoming increasingly laborious and expensive as consumers face paying multiple subscriptions for the content they used to access from one portal, for one price.
The looming battleground, therefore, is in the provision of top-quality content and the ability to charge a premium for it.
But the next disruption lies in an aggregator creating a single access point across all these platforms. Classpass did it for the wellness sector, Hometogo.com for vacation rentals and Moneysupermarket.com for financial products. There is a ripe opportunity to save consumers from the tyranny of choice and multiplying cost, and making content entertaining and available again.