Being the on-demand and one of the top media industries, Netflix has a subscription of 167 million people around the globe. It not only has secured its dominant place in the industry but has also changed the scope of the television industry.
Due to the dominant prevalence of Netflix in the media industry, it has disrupted the way other television networks used to conduct their business. One can argue that Netflix has changed the expectations and behaviors of consumers by producing original content, better subscriptions, and consumer-preferred ways to consume content. For example, many cable providers offer on-demand service along with their cable TV service. Spectrum is a prime example that offers on-demand for free with thousands of movies and TV shows with the Spectrum Silver package. This plan has premium channels like HBO, Showtime, and NFL Network include.
Now, to consider the fact that Netflix will ever be opting for live TV one day is debatable.
The idea when Netflix started streaming TV shows was entirely on a different road than the typical TV media. Hence, to argue that Netflix will compete for mainstream TV media is a bit redundant. With the huge subscription level, Netflix will not compete against TV. One of the biggest reasons lies in the fact that Netflix already produces original content, so it can also be argued that it is already a TV powerhouse.
Another factor for the higher rate of Netflix views as compared to TV is that of age. It has been studied that people from the age group of 18 to 34 prefer streaming services as compared to TV. Hence, it supports Netflix’s decision to not produce the carbon copy of TV. Besides, a study has also shed light on the fact that in the US people have set Netflix as their default streaming option even though the comparison of Netflix was with Hulu and Amazon Prime Video.
However, these facts cannot outdo another major factor that TV is still being one of the major sources of entertainment among most people and only 58% of people watch Netflix. But we did see a higher wave of people turning towards Netflix during lockdown which makes it even clearer that Netflix does not have any plan to run TV streaming. The lockdown imposed by Govt lured more people to get a Netflix subscription with 73 million subscribers. Alongside, Netflix decided to raise the bar even higher and increased the prices of its subscription services. However, this particular step maybe not a good choice which Netflix has taken so far because of the pandemic and recession in the salaries of the US population.
One of the reports mentioned that Netflix does not indicate that it can ever change its course towards hosting live TV. The CEO of Netflix also mentioned that they are not looking for competition with other online streaming companies, which according to some is not a very wise decision.
According to Netflix, even though people have more choices for entertainment, for starters, there is Amazon, Apple, Disney which are the strong competitors of Netflix. But for Netflix what matters more is that they can provide an original and large number of choices of TV shows and series.
During the first wave of coronavirus, millions of people cut their cable subscriptions and joined Netflix for entertainment purposes when theaters and movie halls were shut down. Due to a large number of viewers around the globe, Netflix had to downgrade the European viewers just to preserve the bandwidth.
All these arguments boil down to one factor that what Netflix has to offer to its consumers is on-demand. There is no live coverage of events or channels to cater to the consumers as TV service does. Netflix has all the resources, money as well as motive to run a TV service but the major question is, does it want to? Because as we have seen above, the CEO has mentioned Netflix’s intentions to run the same way as it does already because the popularity lies in the fact that it has been different than the mainstream TV services. It has been proven by Netflix that it can attract and sustain a giant number of audiences with its original content and creations, which already makes it a live powerhouse. Thereby, it does not feel any need to produce a carbon copy of live TV.