Netflix could be planning ‘always-on’ live TV channels

· Source: TechCrunch · Field: Media & Entertainment — Digital Media & Streaming, Advertising & Marketing Technology, Entertainment Technology & Innovation · Depth: Fundamental Awareness, quick

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

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

Topics

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Editorial summary, takeaway, and curation by AIssential. Original article published by TechCrunch.