Netflix faces steeper drop-offs after first seasons
Reports point to cancellations, longer waits between seasons and free video apps as Netflix studies why viewers leave shows behind.
By Hana Yoshida · Markets Reporter
3 min read
Netflix is examining why audiences are not returning to some of its series after first seasons, according to Bloomberg and The Verge. The issue matters for the streaming service because repeat viewing helps justify expensive renewals and keeps subscribers engaged between new releases.
The Verge reported that Netflix remains the world’s most popular paid streaming service, but has had trouble keeping viewers attached to shows beyond their debut seasons. Its anthology series Beef lost 70 percent of its audience when it came back earlier this year, The Verge reported.
Bloomberg reported that Netflix is trying to identify what is driving the falloff. The Verge pointed to several pressures, including Netflix’s own renewal habits, longer production gaps across television and competition from free platforms such as TikTok and YouTube.
Long waits and cancellations add pressure
Wired has reported that Netflix often cancels shows around the point when they become more costly to make. The Verge argued that this pattern can make viewers less willing to invest time in new series if they suspect a story may not continue.
The Hollywood Reporter has reported that waits between TV seasons have been getting longer. The Verge said those gaps can weaken audience interest, especially for shows that rely on fans remembering characters and plotlines from earlier installments.
The Verge cited live-action adaptations of Avatar: The Last Airbender and One Piece as examples of Netflix projects whose returning seasons face questions about whether viewers will come back. It also reported that Avatar drew criticism from fans of the original animated series after its debut.
Free video rivals are taking attention
Yahoo Finance reported that U.S. adults came to spend roughly as much time on TikTok as they do watching Netflix within a few years. The Verge said that shift helps explain why Netflix has expanded into areas beyond scripted television.
Netflix has pursued games, live sports and video podcasts, according to The Verge. TechCrunch reported that the company also plans to test shorter video content through publisher deals, a format aimed at quick viewing sessions.
The Verge said TikTok and YouTube have an advantage because they are free to use, while Netflix requires a paid subscription. The Verge also argued that short clips alone may not be enough to persuade people to sign up for Netflix.
The binge model created its own problem
The Verge traced part of the problem to Netflix’s release strategy. It reported that the company’s binge model encouraged viewers to focus on a show for a short period and then move to whatever new program was getting attention online.
The Verge said that model can make it harder for a series to build word-of-mouth over time. It also reported that Netflix has had some success with weekly releases, though The Verge said that approach may not fully solve the company’s retention problem.
Quality is another factor, according to The Verge. The site said some viewers stop watching shows when later seasons do not hold their interest, while noting that Stranger Things remained a major draw despite criticism of its later run.
The Verge argued that Netflix’s best chance to reduce the falloff is to keep making shows that hold audience attention and then keep supporting them once they develop loyal viewers. The report said that strategy would require time, patience and money from the company.
This story draws on original reporting from The Verge.