Respectfully, this is a lazy take. If you even slightly dig into the numbers the price increase makes complete sense. Netflix spent 17 billion dollars on content last year. They are outspending competitors 2 to 1 if not more. Their catalog is thriving - you have big names like DiCaprio, Jennifer Lawrence, Ryan Reynolds, Gal Gadot, The Rock etc signing on for movies. You have shows like Squid Game attracting ridiculous numbers.
Netflix is, if anything, signaling how confident they are of their position by asserting their dominance over the market by raising rates. They know their offering is too good for subscribers to cancel. And most will gladly pay and keep paying if the Netflix content engine keeps churning.
I honestly don't see how their catalog is thriving. A lot of popular TV series and movies have moved to their own streaming services and I can only speak for myself, but I find the vast majority of Netflix Originals to be big budget, but at the same time low quality content. They produce some real gems, but I find that those are usually few and far between.
Combined with how frustrating their library is to explore, at least on desktop, I'm really having trouble justifying a Netflix subscription.
Endless horizontal scrolling which repeatedly presents the same movies/TV shows on sequential pages, extremely limited information before you click on a show and various other quirks in their UI add up to an extremely frustrating experience, to the point when I'm strongly considering going back to piracy.
Netflix has produced some good movies in recent years. Your big budget talk applies much more to disney marvel money milking the same cows with the same movie variation over and over and consistently riding the remake agenda of all their classics (which I liked tbh).
Can you name a few? I can only think of three memorable ones; Annihilation (genuinely good film IMO), Bright (mediocre; decent worldbuilding but lacking) and Bird Box (mediocre, massive budget spent on promotion and hype).
I get big "direct-to-dvd" vibes with most other stuff they put on. And nobody talks about these films, which for me is a big indicator that it's not worth watching.
I'll admit Netflix spends a lot of money, but they spend it safely; they try to min/max their content, try to fit ever box / category.
It's a lazy take because it underappreciates that Netflix saw this coming for the last ten+ years.
They made the switch from physical, mail-order rental to digital streaming when the average connection supported a streaming model.
But as soon as they switched from owning content (DVDs) to leasing it (limited time streaming rights), they saw the countdown until the content owners would eventually have an equivalent platform offering.
That's what kicked off the Netflix originals spend, and continues to drive their content creation spend today.
Netflix is 100% sober that (1) they need enough already-owned back-catalog to stay competitive & (2) they will never be in a stronger future financial position than they are today.
So it's literally "accumulate content or die."
And I'm not crediting them with foresight. It was abundantly clear to everyone that eventually the content owners would see {cost of developing platform} < {content value being pocketed by Netflix}.
It was only a question of how long it would take the legacy companies to random stumble into a viable offering.
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The more timely question is "What is Netflix's edge, once they've finished becoming a traditional content producer?"
Because from the last few years of hits and misses, they don't seem particularly better than HBO or Amazon Studios at picking winners.
The benefit of Netflix was that you could binge 7 seasons of a show you didn't get to see back when it was new, for whatever reason. They have to heavily promote their own content and often there are only one or two "seasons", where a season is only about 10 episodes.
In short they may be spending a ton on content, but so does all the others and while I do pay for Netflix, I continually wonder if I should just cancel.
That and they used to have an excellent catalog of movies. I haven't watched a full length feature film on Netflix in almost year, because all of it is such garbage. Prime Video has a better movie catalog than Netflix now. My kids very occasionally watch something on Netflix Kids, but that's not even compelling these days. It's a running joke in the household that my spouse will spend an hour trying to find something decent to watch, only to hand the remote to someone else, who immediately exits Netflix. And their original content is so bad often enough that we have to look at online reviews just to try to avoid wasting 30 minutes on something that'd make a B movie look good.
Netflix absolutely needs to deal with shitty content for the same reason that Amazon needs to deal with fakes or crap: it's an existential threat to their brand.
Being Walmart doesn't work in a digital space, because you can't starve the business out from the physical neighborhood around you to prevent competition.
And once people get it in their heads that "All movies on Netflix are trash" or "All stuff on Amazon is trash," you have a much bigger problem.
Yes. Because most of us on HN are not their target demographic. You have to understand the average Netflix viewer is not a hacker nerd but a middle aged mom who watches Emily in Paris (their most popular show of 2020). :D
