Kevin Mayer’s Post

56% of US households earn less than $75K amidst 8% inflation. Another factor I saw in a study last year was that recurring monthly charges are the single biggest triggers for overdraft fees among low income families. So that $16 charge suddenly becomes $45 bucks with a $29 overdraft. Easy to forget how the other half lives - which is increasingly paycheck to paycheck.

They will need to do a lot of work to make up for the fact that their experience either has used up its catalog or its content discovery mechanisms are hiding a trove that they need to figure out how to expose. I suspect that they will need to make a major studio acquisition to drive the kind of quality development they need long term. They also have to figure out how to better capitalize on providing as many language options in every country as possible so they become the go to choice for people seeking secondary language programming around the world.

Kevin to be honest as an ad venue what unique content does Netflix offer that isn’t already buyable? Many top tier originals have adult content. Licensed content from studio suppliers may have to be renegotiated; selling to an SVOD may not necessarily give NF the right to add ad load. And as noted elsewhere getting AVOD scale out of the existing base isn’t a slam dunk. I think most smart folks such as you thought this day had to come—question Is has the barn already burnt as the horse flees the fire?

Makes sense but needs a strategy to make content relevant to a wider audience as well as rethink pricing. Consistent price increases where customers are now taking multiple subscriptions in totality is higher than old-school cable bills.

The loss of subscribers is inevitable as folks settle into their streaming viewer habits and start to pick and choose.

I'm wondering if there's a scenario where they shift their current film catalogs (which generally aren't premium films) to AVOD, and the current catalogs on PPV only then become part of their premium service. If they get better movies, they'll get more subs.

Yes. Will be interesting to see the strategies other major players present to complement subscription fees to achieve stability and make growth predictable.

That will lead to more cancellations. I'm calling it. No more Rinfolk and other medicine commercials. You can't watch Price is Right without throwing up. Every commercial is about heartburn, taking a dump, or women's period pads. Nooooooo

Kevin Mayer . Of course you knew--you know the game better than anyone. I imagine they started thinking about other non-subscription revenue streams the moment they started losing subs after their fee hike (hence their foray into merch, games, etc). But in the end, economics...