The Medium
Member Mailing: After Netflix's Self-Inflicted Wounds, Five Recommendations for Streaming CEOs
If I had the opportunity to sit across from every CEO in streaming right now, I would make five recommendations:
- Netflix is suffering from self-inflicted wounds but is still has “won” streaming, proceed with caution;
- Netflix’s struggles with password-sharing imply there are limits to reaching 1B streaming subscribers;
- Discount FASTs (especially Pluto and Tubi) at your own peril;
- Discount YouTube as a competitor at your own peril; and,
- If you’re betting on sports streaming to solve for 1-4, you needed to solve for UX/UI yesterday.
It is doubtful anyone would agree with all five, and that is my intent: The common theme is that the “streaming wars” paradigm describes market dynamics that exist more narrowly than most assume, and each should provoke the audience to think more broadly. And each of these recommendations hones in on solving for less obvious market dynamics that exist.
In particular, each and all recommendations highlight a key blind spot that the “streaming wars” paradigm has created for market participants: Free Ad-Supported TV Services (FASTs) - especially YouTube - and smart TV and Connected TV (CTV) operating systems (OSes) are better positioned for the future of streaming than subscription services (including Netflix).
The Problem with The “Streaming Wars” Paradigm
Key Takeaway: There is a war when there is product channel fit. When there is no product channel fit, there is no competition in that channel.
I have long argued against the “streaming wars” paradigm for two reasons.
I primarily understand the ...