Although there are dozens of streaming services which shows a wide diversity of movies and a choice of TV shows, including ones you won’t see on conventional TV channels, Netflix is probably one of the biggest. Like many other services that have become big such as Amazon, Netflix has developed many of its own shows. All that is now in doubt. Netflix is killing off many of its own shows, and February was a particularly bad time for the service. In this article, we shall try to figure out the simple reason Netflix is killing off their own shows.
Their original series Friends from College, a series which has run now for two consecutive seasons, will not be coming back, unfortunately, and they have cancelled their popular original Marvel TV shows. This is a tragic goodbye to the popular Jessica Jones, the Punisher, Daredevil – another popular show was cancelled much earlier much to the anger to the fans – including Eminem, among other Marvel TV shows which marks the end of Marvel’s tenure with Netflix.
Why did they cancel the shows? Competition. Originally Netflix and Marvel signed a deal, but Marvel’s parent company Disney’s relationship with the streaming company has not moved on in a friendly manner – to the public they are friendly, but that is something to be expected. Behind the scenes where no-one can hear them, it’s a different story. Disney’s original deal was to let Netflix stream all of their content, but now Disney have come up with their own streaming platform, Disney+, and it is very likely going to be a top contender for Netflix to cope with. They have known about Disney+ for a while now, they knew they would need to stop streaming Disney movies like Beauty and the Beast, Snow White, and so on, but they hadn’t wanted to cancel Marvel TV shows – they’d even ordered a new series of Jessica Jones. There have been reports the deal broke down after negotiations failed, and Netflix was no longer willing to license Marvel IP. But it is possible these series will come back.
But there is more than that. A lot more. The problem is Netflix has done this before. They have cancelled the shows that have helped reel in the audience – Daredevil’s cancellation actually led to the fans to campaign for the series to be saved.
Netflix makes and shows this original content to help make it different from other streaming services so people will want to choose Netflix in the first place, and they have many more subscribers than their rivals do while they don’t really need any different content to show. But the main thing to remember is this entire set up costs, and Netflix follows the traditional calculation for its profits like everyone else – the revenue minus the costs. The streaming company wanted to reduce the cost of making its own shows, though it is expensive for them to develop the content of their own -if they want to save money in the long-term business strategy, then they would want to become less reliant on hosting expensive content which is licensed.
Many of the original series Netflix shows are made with help from other studios. It’s only now further down the line they want to keep things to themselves. It all comes down to cost – they want to get rid of the more expensive shows, American Vandal for instance.
Netflix probably won’t kill off some of the shows they host – the more popular something is, the more likely they will want to keep it going even if it costs more for them to produce and to stream. However, the presence of a bigger company who is acting as the outside stakeholder is also a factor. Usually, Netflix will only pay out a fixed price for the content which is original – less popular series which they stream will not get cheaper even if people aren’t watching.
With Disney+ coming out, there is a sense of logic Netflix would rather keep its own money instead of giving it to a would-be competitor – though fans are far from happy. It also makes sense they are getting rid of so many shows – Netflix wants original content to come from their own studios, but in order for them to do this, they will need to cancel many other series. With Netflix getting rid of so many series in favor of their own content, it also makes sense other companies producing their own original content will come out to rival this former giant.