Will Netflix’s Crackdown and Ads Change the Streaming World?
Netflix suffered huge declines over the past ten days after a loss of 200,000 subscribers and a forecast of 2 million more being gone in the next three months. Their shares went from $348 to $216 in four days and right now, it’s at $190.36. Does this mean that streaming has finally hit the top point? Are consumers ready to say enough is enough? The crackdown on password sharing and then Netflix wanting to charge for sitting through ads in order to pay at a lower tier. (Think how NBC’s Peacock app does) When Netflix is the company that taught us that we didn’t need to sit through ads anymore.
People used to believe streaming would replace cable. Many ran to cut the cord. However, watching programs on TV is still the dominant habit for most people. There will be a finite number of dominant players like Netflix, Disney, HBO Max, Apple TV+ and Amazon Prime. Families only have a certain amount of money. If these big players keep raising their prices, then you are going to have some people having to make the decision to drop some of them because they can’t afford it.
Pro Wrestling and MMA
UFC, WWE, and AEW are NOT advised to be quickly looking into an all-streaming world as visible long term. NWA owner and president Billy Corbin has already said that NWA is looking to go all streaming. But is it too fast? Having a presence on network/cable TV is still necessary to grow your audience and reach those that aren’t going to convert. Brandon Thurston of Wrestleconmics on POST Wrestling talks about how if WWE Raw would go to Peacock full time, it would damage its largest audience of 50 years old and up. WWE isn’t the young person’s brand and most of its consumers are older that refuse to cut the cord.
However, is AEW looking to go to an all-streaming platform? No, they aren’t. They are said to be looking into having a streaming place like WWE, but all their content won’t move there. For the same reasons that WWE’s content won’t. Their older audiences that won’t follow them there. Also, like WWE, AEW has a TV deal with TBS/TNT until 2024. AEW’s young audience and growth is a bargain compared to WWE’s value and the audience being brought to the table. But don’t look for AEW or WWE to move to streaming completely anytime soon.
At The Overtime Network, we cover sports and sports betting then let’s discuss live sports. Will Netflix go after live sports? WWE’s Nick Khan has said it’s only a matter of time. The huge success of “Drive to Survive” has many speculating that Netflix will be going after the F1’s US domestic rights that come due after this season with ESPN. It is said that Netflix could get its domestic license for comparatively little investment. This would allow them to test out if their audience would like live sports before bidding on any other major sports.
Personally, I think we will be seeing live sports sooner than we realize on Netflix and Amazon Prime. Especially since we see Peacock hosting Premier League Soccer and now will be showing MLB regular-season games during the week. Let the bidding wars begin.