The Thriving Netflix Equation

Netflix digital platform already has almost 70 million paying users, while all cable TV operators together in the country have 77.5 million subscribers, according to a survey conducted by Variety. It will certainly be a hard blow for an industry that has dominated the American audience for years and now needs to adapt to streaming.

Fact is that Netflix has been investing heavily in the production of original series and films to overcome cable TV subscriber numbers, an equation in which the company manages to both attract new subscribers to the service and also keep current customers, who today have a variety of new streaming services at their disposal - such as Amazon Prime, Disney Plus, Hulu and others.

Over the past decade, the number of cable TV subscribers has remained stable between 2011 and 2016, with a drop of just over 2.3% over the period. In contrast, Netflix digital service more than doubled its number of subscribers, reaching 49.4 million.   

A greater investment in more original content so as not to become a hostage of the productions of American broadcasters should also be added to explain the growth. Also, the more own content means independence from the broadcasters and even a saving in spending on the rights to broadcast other people's content.

The new coronavirus pandemic has also driven this increase. "There has been a significant advance in the adoption of services, leading to enormous growth in the first half of this year," the company said in its financial report for the second quarter of this year.

In the last six months alone, the company from Los Gatos has added 26 million new subscribers to its base, which shows undeniable growth.

The next original releases will be  ¨Locked Up¨ ( New Episodes),¨ The Kissing Booth 2¨, ¨Dark Desire¨ and ¨Animal Crackers¨.