Will Content Save Netflix?

Netflix took over the digital streaming market with its first-mover advantage, but as licensing agreements expire and competitors start their own streaming platforms, content might be its only differentiator.

Will Content Save Netflix?

The  path  ahead  for  Netflix  could  prove  more  difficult,  however,  as  it  faced three  major  threats.  The streaming market was expected to become bloated with new competitors, each encroaching upon the others’ subscriber bases. Consumers would also face a more difficult choice regarding how much to spend on video entertainment from multiple SVOD services. Moreover, Netflix was going to face an inevitable decline in the breadth of its content due to the expiration of licensed content agreements with former partners, who had turned rivals.

The company’s first-mover advantage had allowed it to secure the largest share of the US streaming  market.  Retaining  that  share  could  become  more  difficult with  the  entry  into  the  market  of diversified media giants.

Was Netflix vulnerable in head-to-head competition in an increasingly fragmented market? How should it respond to entry by its former partners?