5 Key Challenges to Netflix that analysts say the Company must tackle to stay ahead of the Streaming Pack

5 Key Challenges to Netflix that analysts say the Company must tackle to stay ahead of the Streaming Pack

Netflix is one of the most-watched streaming services across the globe. This is one of the main reasons why the streaming giant has a massive customer base of more than 214 million subscribers worldwide. 

Besides, Netflix is available in 190+ countries throughout the world. If you want to stream the popular streaming platform, you can check howtowatchinaustralia, a leading website based on the streaming genre that allows you to watch Netflix from anywhere on your preferred devices without any hassle. 

Coming back to the point, Netflix needs to address some key challenges that can hamper its growth in the long run. These 5 critical challenges include:

The content acquired by Netflix is more powerful than the original content

Despite investing billions of dollars in its original content, Netflix’s outsourced content is more engaging and powerful. In fact, people prefer to watch the content acquired by Netflix over its original shows and movies. 

This is an alarming sign for Netflix as it can become a headache in the future in case competitors including Disney Plus, Hulu, Prime Video, etc. acquire popular shows and films like Chernobyl, Seinfeld, The Wire, The Sopranos, Band of Brothers, Game of Thrones, Inception, The Social Network, etc. 

Netflix will have to work quite hard to remove this inequality between original and outsourced content engagement-wise. 

Add more features and offerings

Apart from providing offline viewing, simultaneous streams, apps for different operating systems and devices, Netflix must include free trial in its armory again. 

Likewise, the service needs to redesign its ‘Are You Still Watching’ feature appropriately. Similarly, there is no harm in utilizing better notifications when any TV show or movie leaves the media content library. 

In addition to this, subscribers should be allowed to share media content they are watching be it TV show, movie or a documentary through a link on social media platforms like Facebook, Twitter, WhatsApp, etc. 

This way, potential subscribers can also get to know about the latest TV shows and movies Netflix is offering to their customers.  On the brighter side, the platform has started adding video games into its mobile apps to entertain their subscribers who are gaming enthusiasts.   

Net profit is decreasing

This is another area where Netflix should focus on an immediate basis. Moreover, the cost of creating original TV shows, films and documentaries is still quite high. 

Surprisingly, the story does not end here as the original content has not been up to the mark in terms of revenue. Therefore, Netflix needs to redesign its original content strategy that allows the service to get better results in the future profitability-wise. 

Too much reliance on the US market

Netflix is still dependent on the US market despite existing in more than 190 countries worldwide. As per the report, more than 74 million paid subscribers belong to the US and Canada. Therefore, Netflix’s net profit relies quite heavily on the subscribers who reside in these countries. 

That said, Netflix should focus on improving its current subscriber base from countries other than the US and Canada. As a result, the service might be able to achieve better outcomes in terms of profitability and expansion in the coming years. 

Likewise, Netflix must try to include TV shows, movies, and documentaries, in its content libraries from countries like South Korea, Japan, etc. 

Squid Game is the best example as the famous Korean TV show has grabbed the attention of Netflix subscribers from all around the world in huge numbers. 

Consequently, Netflix can increase its subscriber base drastically and discover new ways of improving net profit overall. 

Getting licensed content will be difficult for Netflix

Due to the ongoing streaming wars among numerous streaming platforms or services, Netflix may face stiff competition in getting popular licensed TV shows and other content in the future. 

That’s because different media companies like Disney, NBC, CBS, ABC, and others have started offering their video on demand streaming services. Hence, they might be no longer interested in selling their top-notch shows, movies, or documentaries to Netflix. 

Considering the significance of acquired content, Netflix will have to bear an additional cost to buy attractive titles from the above-mentioned content providers. Otherwise, the service might lose a significant chunk of paid subscribers in the future. 

Thus, Netflix will need to lower its dependency on licensed content if it wants to remain the major player in the online streaming industry across the globe.  

For that reason, Netflix will have to improve the range and quality of its original shows, documentaries, and movies considerably. 

Wrapping Things Up

Netflix is rightly considered the media streaming giant because it helps you watch TV shows, movies, and documentaries related to different exciting genres accordingly. 

That said, the leading video on demand service has to up its game in areas like original content, gross profit, features and offerings, and others. By doing so, Netflix will be in a better position to keep its current subscribers engaged and entertained with the right approach in the future.  


Shankar is a tech blogger who occasionally enjoys penning historical fiction. With over a thousand articles written on tech, business, finance, marketing, mobile, social media, cloud storage, software, and general topics, he has been creating material for the past eight years.

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