The Downfall of Netflix

Netflix holds the position of the number one-rated streaming service in the world. With more than 300 million users since 2024, Netflix has made over $80 billion in revenue. 

The company was founded by Marc Randolph and Reed Hastings in 1997 as a website-based DVD rental-by-mail service. Netflix launched its subscriptions in 1999 and officially began streaming in 2007.

Netflix prides itself on its great movies and shows that on the go. They wanted to expand entertainment outside of the home. And while Netflix has continued to be one of the top streaming services, in recent months, there has been backlash online about its supposed “downfall.”

There are many reasons why Netflix may be on a downward trajectory, despite being at the top. In 2022, Netflix switched to higher subscription costs, introduced ads, and banned password sharing. This ultimately led to their first major subscriber loss in years. 

Inflation has caused subscription prices to rise, making streaming services like Netflix a luxury, rather than accessible. Subscription prices range from $7.99 to $24.99 per month. The three main plans are: Standard with Ads ($7.99/mo), Standard ($17.99/mo), and Premium ($24.99/mo). 

The introduction of ads to a basic plan took away from Netflix’s appeal as an ad-free streaming service. Originally, Netflix wanted to be entirely different from something like cable, where the only way to watch your favorite show was to wait until it came on. While Netflix has kept its flexible streaming capabilities, its adoption of ads has reminded users of what they were trying to stay away from. 

While the ad and price increase can be frustrating, viewers believe Netflix’s quality has also significantly decreased. Social media has often referred to something called “Netflix Lighting” in popular new releases.

In the Netflix original series, Stranger Things, viewers have compared the lighting in early seasons to the lighting in the most recent season. In season five, the lighting is described as dull and lifeless, while in season three, the lighting is vibrant and engaging. 

This phenomenon is not just seen in Stranger Things. It can also be seen in more recent seasons of Grey’s Anatomy and The Crown. Netflix lighting doesn’t just include dull lighting, but it’s also the lack of differentiation among lighting in scenes. The concept of using lighting to help tell a story has been lost in large entertainment companies such as Netflix, whose main goal is to make more money rather than create better media.

Netflix gained popularity because of its diverse selection of movies and shows. Subscribers love watching new Netflix original movies and tv shows because they can count on it being unique and entertaining. But in recent years, the media Netflix has been producing has been lackluster and underwhelming for many viewers. “I feel like over the years Netflix has gotten cheap, the movies they produce now are boring and aren’t special,” typed Lyla Carpetto, senior. 

With their mind set on income rather than quality, Netflix has seen a drop in show ratings and views. Along with the demand for new media, Netflix has been canceling or even removing popular entertainment to make room for new mediocre films. “…they occasionally have a good movie/show I want to watch, but they take it off after a month to replace it with more crappy stuff,” typed Carpetto. 

Overall, viewers have concluded that Netflix has significantly dropped in quality over the years. While keeping in mind their extreme competition with other streaming services like Hulu, Disney+, and their ultimate competitor, Amazon Prime Video, Netflix has been preoccupied trying to keep its spot as the number one streaming service. 

But in order to keep subscribers engaged, Netflix needs to review some of its content and reflect on its quality and overall significance to its platform. By keeping ads and subscription costs down, and creating original, engaging, and most importantly, high-quality content, Netflix can climb the reputation ranks. 

 

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