Lefsetz Letter » Blog Archive » Netflix No Binge

“Netflix reportedly plans to start releasing episodes weekly”: https://bit.ly/3Rzz2hf

That’s why the music business is struggling, ignoring customers in search of a growing bottom line.

It all comes down to the customer, right? Isn’t that the reason for Netflix’s full turnaround?

Maybe you’re not paying attention to streaming, but these companies are walking down a very dark path. When they add ads and become similar to TV networks of the past, produce less content for more money while charging more. Never mind that the old TV networks were and still are free!

I mean you want to advertise and charge me too? Makes me feel like a second-class citizen?

If you’re Spotify, that’s one thing, it incentivizes gluttons to get full shipping, full payment. It works. You’ll see the free tier falter. No one who really wants to listen to music likes it. No one watching TV is going to like these ads, even if they are sometimes better than the crap the network has to offer.

So I used to be a member of the elite Netflix club, no matter how many subscribers the service has, that’s how I feel. It’s all about me. They produce tasteful content, more and better than HBO. Their algorithm is based on my habits. I paid for the privilege, but it’s fine, like you pay for Louis Vuitton, Tiffany, Rolex or even Apple!

Come on, Apple products are expensive, but millions of people own them. Still, the owners feel good about them, which is a badge of honor.

So now the tail is wagging the dog. Investors are running these companies.

Let’s start with Warner Music. Time Warner sold out in 2004 for $2.6 billion. The record label is now worth $14.05 billion and the assets are still intact! With a catalog of the greatest songs of the rock era, it will always pay dividends! Students of the game know that revenue from recorded music will only increase because there are so many avenues for exploitation, not to mention that oldies no longer have value in the sales model, and you get paid when people play oldies today!

Nobody dislikes streaming, except for delusional artists who don’t know if anyone is listening, they don’t get paid, and the enemy isn’t Spotify itself, which pays two-thirds of its revenue to copyright owners and still struggles to make a profit.

Then again, there are always people left behind in the transition from old to new. Ventilation windows? History of the era of universal air conditioning for automobiles.

So you can get all your music for just $10 a month. Deal of the Century.

But on TV…

There is an astronomical cable bill.

There is hope though, because broadband 5G or anything after that, because broadband 5G has so little coverage. Still, T-Mobile now sells home routers.

Then there are cable packages where you overpay for things you don’t want. So people dropped the TV part. But that leaves them with huge broadband bills. But now they have a wireless alternative.

HBO is an alternative to the web. Netflix is ​​an alternative to HBO. More on demand.


David Zaslav, the financial hero of the ignorant, is reducing content on HBO Max.

Netflix has ads.

Why do you want people to pay for this?

they are not!

That’s the big thing in streaming, churn. People sign up for a series and then sign up. I cashed out my Apple TV+ subscription. It used to be free, but then I paid for a month and didn’t watch anything. So I heard about the Apple TV+ show, and in fact just yesterday, RottenTomatoes had great ratings, but I’m not going to re-sign up until there are multiple shows because Apple is a liar. Lowest price with the fewest products. I quit. It’s not about money, it’s an insult! I’ll sign up to watch the whole show right now, but if they think I’m going to subscribe for a few months to watch a show, they’ll have another idea!

HBO Max is powered by its cable channels. All its numbers are fuzzy. Few people sign up for HBO Max directly, they have the service because they pay for HBO through their cable system, which is like believing in CDs. So you have award-winning TV that appeals to people who don’t even know how to stream, and this is the future?

But worst of all, you can’t get everything at a low price.

Yes, give me a number. I went in. give me all. Just like a music streaming service. But TV is balkanized, and it’s getting worse. Who’s winning?

Certainly not the creators who give up residuals. Streaming TV is based on buyouts.

Streaming companies mistakenly think we need their products. This is obviously not true. We might be missing anything these days as there are more products in the pipeline, overwhelming transfer. The dirty little secret is that TikTok is better than all streaming services, it proves more creative, it’s more honest, and it’s free!

But the old people scoffed at TikTok. They have never experienced it. Going down the rabbit hole, it’s addictive, fulfilling, and much better than those parody web shows that Netflix makes. Hasn’t the internet already told us that everything is death for all? And HBO shows that elites can have very broad audiences.

That’s what set off Netflix, and House of Cards is one of the best TV shows of all time. Since then, I’ve not only been a fan of Netflix and hyped the service, but that’s it, I’m done.

I mean I’ll watch it for a while, but I’m not going to rave about Netflix itself. Because Netflix is ​​controlled by Wall Street, not me. Not a traitor, but the system!

Think of models that don’t overeat. You go to a movie and have to come back next week to finish the movie, or eight weeks in a row.

No, you finished the movie in one fell swoop!

Serials are so new that, with the exception of blockbusters like Top Gun: Maverick, most people don’t even bother to go to the cinema. Seeing overpriced crappy pictures?

All the action is on TV. It has always been a medium for creators. Driven by talent, not suits.

But now things have changed, the purse has tightened, the bottom line is key, programmers are no different than Fred Silverman trying to predict what will appeal to most people…like network TV!

One of the most fulfilling things in my life is watching TV. Just finished watching “Salamander”, episode 22.

As for “Ted Lasso”…I don’t even bother to watch season 2, I can’t do an episode a week and when it’s all over and the buzz is gone, what’s the difference? I don’t care what you say, it’s a good show, but not House of Cards, let alone The Godfather.

The road to glory is always paved with quality products. We learned this in both the heyday of music and the heyday of film. These efforts drive culture. They attract attention and grow as a result. When you put the bottom line first…wasn’t that what Warner Bros. Records grew up with in the first place? You want to tag along with Neil Young and Ry Cooder, and you trust the executives care about you. I used to believe Reed Hastings cared about me but not anymore!

It’s one thing if you have an absolute monopoly, but when people feel ripped off, they’re just waiting for a fix, maybe not paying at all. That’s the story of Napster and BitTorrent.

Spotify is killing piracy, and getting out of binge mode is inspiring BitTorrent!

Talk to Killing.

There’s an illusion that we’re standing at the water cooler discussing the show and then… we don’t even want to start work!

I’ve missed pretty much every recent HBO show, even The Heirs, because I can’t wait for week after week to drip before I end up being too far behind to catch up, and it’s just a TV show anyway.

And I am on the cutting edge.

I remember all the crap in the music industry twenty years ago. They would do these surveys and ask kids what music is worth and then they would quote such a high price and steal.

Recreation runs on intuition, not spreadsheets. You can’t make income regular. This is what killed Detroit, sold overloaded SUVs, and was annihilated by Tesla with electric cars. Detroit feels like it’s giving people what they want, maybe, but they don’t care what people want, these changes!

Talk to car buyers and they can only talk about electric. Said they were not going to buy another gas car. Forget those who buy used cars and focus on the upper middle class who can afford new cars. If you don’t think so, then you are delusional. Stay in the past and have no future, change will happen.

Just like the old generation will be replaced by the new one. Younger kids don’t have a TV, let alone a cable subscription. They borrowed their parents’ streaming login information. They don’t need Netflix, they don’t need any streaming service, that’s why you have to make it more appealing to them, you have to give them a reason to pay attention. It’s always left field programming, like “Squid Game”. They’ll sign up, but not twelve episodes in twelve months, no way, it’s a bad business proposition.

In the digital world, in the internet world, you give people what they want or you die.

It’s kind of like the new Apple Watch Ultra… 60 hours of battery life!

Yes, Apple keeps talking about sleep tracking, but if you need to charge the damn watch, how can you do it. But there are sixty hours…

It makes the Apple Watch usable. I’m thinking about spelunking and I don’t even care if it’s eight hundred dollars, that’s what I want!

That’s all, whether your customer base wants your product.

Don’t fool yourself into thinking that people need your product, that people need food and shelter, that’s all, they can end up needing everything else except maybe sex.

You have to put the customer first.

The people who say they like the weekly drip are the ones who like CDs and don’t trust Spotify. In other words, Lutherans!

give me all options.

Smartphones offer more and more customization. Netflix wants to take away the rights I already have. Tell me where this works in today’s world, I can’t think of a simple example.

TikTok has upended Facebook, even Instagram, and everyone thought it was impossible. Facebook focuses on the bottom line, misses out on trends, and the only people left are late adopters, seniors.

Don’t think that visual entertainment can’t be disrupted.

Today, you either innovate or die, serve the people or die.

We can do anything, we can do Netflix without you!

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