Netflix, Thirsty For Growth, Is Spending $17B On Content - Crazy? Drink The Water

A new, full season worth of TV shows every week -- as well as new movies? How can streamers keep this up -- especially the biggest proponent, Netflix?

Ponder where it goes from here for the giant subscription video-on-demand service -- especially with its subscriber base now accustomed to binging perhaps a full 13-episode season in a weekend.

Some sources say it's obvious: Find ways to buy more companies that produce TV content -- as well as companies that also have other streaming platforms.

Some obvious targets, according to one analyst include ViacomCBS, a company with both traditional (TV networks) and new streaming content platforms.

At the same time, analysts also wonder whether Netflix itself could be a possible takeover candidate itself -- especially with new eye-opening projections showing sharply lower future net gains when it comes to global subscribers.



One answer to this near-term issue would be to follow what Disney+, HBO Max, and other legacy owned TV media companies have been doing for decades in their previous distribution iterations: Slow things down.

These operations offer up one episode a week of new TV content. From a behavioral point of view, consumers -- especially older media consumers -- seemingly are not objecting to this, especially if there is other content readily available.

Movies? They don’t figure into the binging vs. one-episode-a-week argument. That said, consumers are aware that theatrical movies now are coming more quickly to streaming services -- perhaps at the same time as in theaters or exclusively at-home streaming services.

No matter what the demographic, streaming consumers just want a lot of stuff -- at all times. They want multiple entertainment options, even if they will never be able to get through all of them.

That brings us back to the whole issue around so-called "peak TV’." Now, after two decades of warnings -- primarily from FX Networks concerning the overproduction of premium TV scripted shows -- we now know this concern has meant little. So far.

John Landgraf, chairman of FX Networks, has always wondered how these expensive TV shows can survive, and how entertainment marketers can continue to spend marketing dollars to gain share-of-voice in an ever growing marketplace.

Turns out there is plenty of survival -- and money -- to be made by a lot of content producers and creators. How many veteran entertainment-related companies have pulled the plug? Not many.

TV and movie production (the supply) is still rising with little concern against where viewers' consumption (demand) habits lie.

As the character Ralph Kramden (played by the legendary Jackie Gleason) said on the vintage 1950s show “The Honeymooners” to Ed Norton (played by another legend, Art Carney): “I hope you realize water always seeks its level.”

To which Norton (a worker for New York City’s underground plumbing system) replied: “Yeah, we heard rumors of that down the sewer.”

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