Streaming pioneer Netflix
The rationale is relatively simple; Netflix faces much more competition. Speaking to CNN Business, Magid senior vice president of research Andrew Hare noted that the U.S. and Canadian streaming markets are "maturing" and that raising prices is just one way that the company can cope.
However, that practice might not be sustainable for very long, with consumers becoming much more frustrated with the continual hikes and becoming more willing to switch to a competitor. While the price hike might help offset the mounting costs of slowing growth, for now, the company will need to find a new approach in the future. That approach will, of course, lie with innovating new content to make itself more competitive.
Anyone browsing social media over the past year has likely been awash in memes, parodies, and fan artwork of the Netflix smash hit 'Squid Game'. The Korean drama was a groundbreaking success for the streaming giant, tapping into the intrigue North American consumers had developed for Korean film and television after previous hits such as 'Parasite'.
However, for every 'Squid Game', there is a 'Cowboy Bebop' to put a further drain on the company. The live-action adaption of the lauded anime series fell flat, failing to recapture the original animated series in a way to maintain returning fans and similarly failing to break enough ground to attract new, younger viewers. Netflix subsequently canceled the series.
Going forward, the onus is on Netflix to innovate its creation process. 'Cowboy Bebop', while notable, is far from the first in-house content to flop with viewers. To many consumers, "Netflix Original" has long been synonymous with low-quality direct-to-streaming films, with the company's backlog of flops serving as both a financial and reputational drag.
