Netflix’s CEO recently made some bold predictions about the future of streaming platforms and traditional television.
There is not a more prominent name in the streaming service game than Netflix. Arguably the one that “started it all,” Netflix has provided millions of customers with a near-unlimited catalog of nonstop entertainment for nearly two decades. Because of the success of Netflix and other streaming services, Netflix co-CEO Reed Hastings made a very strong and bold prediction regarding Netflix and cable TV.
Hastings said that streaming services are set to completely take over traditional television broadcasting within the next decade:
“It’s definitely the end of linear TV over the next five to 10 years,” Hastings said, discussing Netflix’s current financial status in a recent interview.
This is especially bold considering Netflix has fallen on hard times recently. Despite being the “king” of streaming, Netflix has seen some big losses. In the United Kingdom alone, the streaming service giant lost numerous popular series, including Modern Family, How I Met Your Mother, and Sons of Anarchy, all of which were moved to Disney+. Netflix lost 750,000 subscribers in that same region.
In the United States, Netflix is also in a bit of trouble, falling behind compared to newer, shinier options like Disney+, Hulu, HBO Max, NBC’s Peacock, and more. However, Netflix is confident and looking ahead to the future.
In a letter to shareholders, Netflix stated, “in the U.S., which is one of the most competitive markets in the world, we drew more TV viewing time than any other outlet during the 2021-22 TV season nearly matching the combined total of the two most watched broadcast networks.” Hastings added, “And, as Nielsen will announce on Thursday, our share of U.S. TV viewing reached an all-time high of 7.7% in June (vs. 6.6% in June 2021), demonstrating our ability to grow our engagement share as we continue to improve our service.”
Also, during the same interview, Netflix execs gave updates on the company’s spending plan as it continues to make budget-conscious choices while still attempting to spearhead future entertainment. Chief financial officer Spencer Neumann said spending for next year would be at “similar levels” as this year.
“We’re optimistic that over a couple of years we can deliver an experience that is fundamentally different than the advertising experience on linear networks in a way that fundamentally benefits all the stakeholders,” Netflix chief product officer and chief operating officer Greg Peters said.
Netflix expects to end 2022 with a whopping $17 billion spent on content. Netflix is planning to launch a cheaper, ad-supported option in early 2023, which we reported on here.
Do you prefer Netflix or another streaming service? Do you agree that linear television is going away?