Netflix's Strategy: The Unspoken Gap in Content
While Netflix continues to reshape the cable bundle, there remains a notable absence in its focus on live-news and pre-taped programming. Explore why Netflix seems to steer clear of these traditional content formats.
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Netflix is changing the cable bundle, but without news included.
The company is moving closer to resembling the entertainment giants of the past, after revolutionizing the TV industry by introducing streaming services that have become popular and expensive.
Netflix, which had resisted adding advertisements to its plans for years, announced on Wednesday that it now has over 40 million subscribers to the ad-supported tier. Additionally, the platform has expanded its content to include live late-night comedy shows like the roast of Tom Brady and John Mulaney’s “Everybody’s In L.A.” Furthermore, despite stating its reluctance to delve too deeply into live sports, Netflix has made significant progress in this arena.
On Wednesday, Netflix made an exciting announcement about a new deal with the NFL. They will be showing not one, but two games on Christmas Day this year. This adds to their collection of live sports events, including WWE "Raw," which will be available exclusively on Netflix in the coming year.
Netflix's chief content officer, Bela Bajaria, shared that last year the company took a risk by focusing on live events. They wanted to cater to fans of comedy, reality TV, sports, and more.
Bajaria’s statement and the company’s programming strategy do not include news. Netflix has not shown interest in investing in live-news or pre-taped programming like “Vice News Tonight” or “60 Minutes”. They have not discussed or launched any news projects and have told talent agents they are not interested in the news business.
According to a talent agent who wishes to remain anonymous, entertainment platforms like Netflix are not interested in news. They believe their audiences do not want it and it can be divisive. Therefore, it is not a priority for them.
Netflix has joined Meta in actively avoiding the news, following in the footsteps of other technology and media companies that have disrupted the traditional business models of news organizations.
There are valid reasons for these companies to steer clear of the news. Firstly, news reporting is not as popular as entertainment content. Secondly, news has become increasingly divisive in recent times.
Dec 25, 2023; Kansas City, Missouri, USA; Kansas City Chiefs quarterback Patrick Mahomes (15) scrambles from Las Vegas Raiders defensive tackle Adam Butler (69) and defensive end Tyree Wilson (9) during the second half at GEHA Field at Arrowhead Stadium.
On December 25, 2023 in Kansas City, Missouri, USA, we witnessed an intense match between the Kansas City Chiefs and the Las Vegas Raiders. Quarterback Patrick Mahomes (15) showcased his skills as he scrambled away from Las Vegas Raiders defensive tackle Adam Butler (69) and defensive end Tyree Wilson (9) during the second half at GEHA Field at Arrowhead Stadium.
Jay Biggerstaff/USA Today Sports/Reuters/File
Related article
Netflix is expanding into live sports by airing NFL games on Christmas Day. This move marks a major expansion for the streaming platform.
Simply stating that the 2020 presidential election was not stolen, which is a proven fact, can alienate Republicans. This polarization not only makes it harder to sell advertisements around the content, but also runs the risk of turning off a portion of the customer base and motivating them to unsubscribe from the brand.
Investing in news programming by Netflix would mean spending money on content that may not be as popular as other genres, but it poses a greater risk to the overall business. Looking at it purely from a business perspective, it makes sense to avoid this type of programming.
However, some argue that these companies have a civic duty to support news and public affairs programming. They played a significant role in disrupting the traditional business model that sustained television newsrooms for a long time. Journalists play a vital role in democratic societies, and the decline of the news industry has far-reaching consequences for the future of a free world.
Large media companies often invest in journalism, with Warner Bros. Discovery owning CNN, Comcast having NBC News, Disney owning ABC News, and Paramount owning CBS News. Back in the day, when cable was disrupting the industry, major carriers like Netflix today financed the creation of C-SPAN to provide the public with continuous coverage of government activities. Given this history, is it unreasonable to consider whether a streaming platform like Netflix should offer news programming to educate and engage the public?
Creating a traditional cable package without news is like preparing a meal with steak, potatoes, and ice cream, but skipping the broccoli. While vegetables may not be the most popular choice, neglecting them would be unhealthy. Similarly, focusing solely on comedy and sports may be more enjoyable for viewers, but it is not a beneficial decision for society as a whole.
That is where we are headed with the decisions being made now. With the rise of streaming services taking over live sports rights, traditional cable TV bundles are losing their appeal. This means that television news outlets, which were once dominant, will also suffer, making the situation even more challenging.
Editor's P/S:
The article highlights Netflix's growing dominance in the entertainment landscape while shedding light on its conspicuous absence in the news arena. The company's reluctance to invest in news programming stems from the belief that it is unpopular and divisive, potentially alienating viewers and advertisers. However, the article argues that this stance may be shortsighted, neglecting the civic duty that large media companies have to support journalism.
The analogy of a meal without vegetables aptly illustrates the potential consequences of excluding news from streaming platforms. While entertainment content may be more palatable to audiences, a balanced media diet requires the inclusion of informative and thought-provoking news. The decline of traditional newsrooms has far-reaching implications for democratic societies, and streaming services have a responsibility to fill the void they have helped create.
