| Yes "data driven" does not always lead to what's best for the consumer. From what I understand, Netflix' decision model is heavily based on how many users watch the first X minutes of a season in the first few days that it's up. Essentially if the show isn't a hit immediately after release, it won't be renewed, and the threshold required to renew goes up exponentially every season, so essentially a show has to be a runaway hit in order to survive past the second season. I'm sure this is a data-driven decision, and I guess it shows that novelty is probably what drives people to the platform and gets new subscribers. It makes intuitive sense: with most forms of media the largest number of people will give something a try when it's new, and aside from very rare exceptions the viewer base will settle in to a much lower number of "true fans". So it makes sense in the short term from a business perspective, and they have way more data than I do from my armchair, but I wonder if they are adequately assessing the risk of this decision model. People get deeply emotionally attached to media, and it's a strong negative when a series you love is cancelled, so this could negatively affect their brand over time. And that's not something which is so easy to design KPI's around as new subscriber numbers. I suspect Netflix would have to see increased churn due to pressure from competitors to see more serious attention paid to loyalty and retention. |
Netflix, you're wasting my money. I'm not getting what I expected to get from you. I will be spend my money on something else than you.