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I can't help but draw parallels from how Netflix manages their content to how Google manages their products. I listened to a podcast where they explained the ec

I can't help but draw parallels from how Netflix manages their content to how Google manages their products. I listened to a podcast where they explained the economics of why Netflix is doing this and it's basically because they have to pay fees to keep the show up. This causes a similar pressure that seems to felt inside of Google, if something is not a smash hit right out the gate, kill it. But as we saw with Google, this is not a viable long term strategy, you save money in the short term, but in the long term people stop using your products / watching your shows because it might be gone tomorrow so why bother.

NickC25 4y ago
I think their hangup is, because they have SAG/Unionized actors/actresses, that they actually have to pay higher fees per each subsequent season (season 2 actors get paid more than season 1, season 3 actors get a bump from season 2) so eventually all but the most hyper-profitable shows get cancelled, and even then, some of the most popular ones still get cancelled because said show eventually becomes unprofitable after season 5 or 6 even if like 75% of the entire customer base is watching the show. It becomes a self-fulfilling prophecy. Netflix's addiction to data and revenue optimization becomes their demise. I think with the money they have, Netflix should try producing a show that has 1, or 2 seasons, and has a concrete ending with little to no room for another season....and see how it does. People will invest time into something that they know has a definitive ending....but won't if they know the show might be canned and the story is left on a cliffhanger.