If your reaction to Netflix raising their monthly subscription prices again is, “didn’t they do that not too long ago?” we’re with you. Raising prices for any streaming channel in the current times is a risky bet.
In fairness, based on the amount of new content Netflix is adding compared to all the other streaming services, they are worth the extra money.
The company’s decision to raise its standard plan by $1 per month, from $12.99 to $13.99, and its premium plan by $2 per month, from $15.99 to $17.99, is an essential part of Netflix’s long-term strategy. It’s why Netflix has a market valuation of $218 billion on just $2.8 billion of net income in the last 12 months.Why Netflix will keep raising prices with confidence
Of course if you’re #1 already in your field, that will lessen the blow. And Netflix has a pretty good lead over just about everybody else, from a standpoint of a stable of ready new content and existing movies and TV shows to binge-watch.
They just keep adding more, more more, to the point where we questioned not long ago maybe they’re adding too much (see: Does Netflix Release Too Many Originals? Maybe Ask New CMO Bozoma Saint John)
The problem with adding too much is something new usually only gets one chance to be “new.” Then it can get lost in the archives. There are exceptions like TV shows that get to be new every time a new season, special or episode is released. Movie-wise, though, that one opportunity can be fleeting.
We like seeing around 3-5 new movies per week open in theaters. Right now due to the pandemic the number of new releases is one per week, sometimes two.
If I was in charge of organizing new movies for streaming channels, I’d focus on promoting and releasing 1-2 quality new movies (max) per week for the channel. If every streaming channel had one feature new movie per week, that would still be more than most moviegoers could see, but at least it wouldn’t be saturated.
What I mean by “quality” is very subjective. It’s not just a question of the budget, which we can go down a rabbit hole arguing larger budget equals higher quality, something I generally disagree with in concept. Yes, a larger budget can have bigger name actors, more special effects, but it doesn’t mean the story is going to be great. It could also mean a great story without any name actors or decent special effects won’t draw as large an audience. Special effects needed will vary upon the type of films being made of course.
For example, I’d label most of what Blumhouse is producing as “quality.” They shoot for lower budget and not all of their films are good, of course, but there is definitely an emphasis from that studio in getting the bang for their buck. Some other studios making movies on Netflix do not have as high filmmaking standards with similar or larger budgets.
As for a marketing and promotional strategy? Promote these new releases starting with an active campaign 90 days from the release date (release the first trailer, then a second trailer 45 days before) and increasing the amount of promotional activity incrementally until the week before and during which should be at the height of movie lover engagement. Would also buy ads in movie theaters, if allowed, even if it’s during that extended period before the previews begin. The Noovie segment, I think it’s called.
How many new movies would you like to see your favorite streaming channel release per month?