Netflix could be planning ‘always-on’ live TV channels
Summary
Netflix is reportedly exploring "always-on" live TV channels and content bundles to combat slowing viewer engagement and audience declines. This strategy, reported by The Wall Street Journal, would introduce continuously streaming content, similar to free, ad-supported services like Pluto TV and Tubi, potentially boosting Netflix's ad revenue as live programming typically prevents ad skipping. The company is also discussing potential bundle partnerships, with Peacock mentioned. These initiatives follow other efforts to increase engagement, including experiments with short-form video, video podcasts, and a new kids' gaming app. Concerns about audience drops between seasons of original shows and a decline in total TV viewing share, which was 7.8% in April according to Nielsen, are driving these strategic shifts. Additionally, Netflix is in talks to acquire Letterboxd, a social platform for movie fans.
Key takeaway
For streaming service executives evaluating growth strategies, Netflix's shift towards "always-on" live channels and content bundles signals a critical industry trend. You should assess how ad-supported, linear programming could diversify your revenue streams and enhance viewer stickiness, especially for background consumption. Consider exploring strategic partnerships for content bundles to expand your service's value proposition and reach new audiences.
Key insights
Netflix is diversifying content and distribution strategies to counter declining viewer engagement and market share.
Principles
- Diversify content formats to retain audience.
- Ad-supported models can boost revenue.
- Bundling can expand service offerings.
Method
The article describes Netflix's exploration of new content delivery models (always-on live TV, bundles) and engagement initiatives (short-form video, podcasts, gaming app) to address audience decline.
In practice
- Consider "always-on" channels for background viewing.
- Explore content bundles with partners.
- Integrate gaming apps for kids' engagement.
Topics
- Streaming Strategy
- Live TV Channels
- Content Bundling
- Viewer Engagement
- Ad-Supported Streaming
- Letterboxd Acquisition
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Editorial summary, takeaway, and curation by AIssential. Original article published by TechCrunch.