Netflix subscriber growth continues to slow. In its Q4 2021 earnings interview last week, company executives said it’s tough to pinpoint why customer acquisition hasn’t recovered to pre-pandemic levels. But the reality is that the streaming market has become saturated. This translates to more choice for consumers, who are growing concerned with the aggregate costs of their streaming subscriptions. This is on the heels of the recent Netflix’s price hike in North America. Fresh data from Forrester sheds some light on the competitive levers that Netflix has or can consider:
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Bulk season drops
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Consumers Prefer Bulk Season Drops Versus Episodic Releases
On February 1, 2013, Netflix did something that had never been done before. It released all episodes of a brand-new series entirely at once. “House of Cards” was delivered with the emerging binge-watching trend in mind. Nine years later, it’s still the de facto model for Netflix series releases — a model that’s still in vogue. According to the company’s Q4 2021 letter to shareholders, Netflix series accounted for six out of the 10 most searched TV shows (globally) on Google.
Data from Forrester’s December 2021 Consumer Energy Index And Retail Pulse Survey reinforces consumer preference for the binge-watch model: Fifty-five percent of US online adults who use a streaming service prefer it when an entire season of a TV show is released at once versus on a week-to-week basis. To get more context, we tapped Forrester’s ConsumerVoices Market Research Online Community (MROC) and asked about their streaming preferences. The most common factors that drive US adults to prefer bulk season drops are:
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