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How Giants Like Netflix Are Circling Back to Cable’s Shadow

The age of streaming dawned with a promise, a vision of a horizon where content was king, and viewers were no longer shackled by the constraints of traditional cable.

 But as the years have rolled on, those early promises seem to have evaporated, much like morning mist under the blazing sun. 

Today, we stand at a curious juncture where the once-revolutionary pioneers, like Netflix, echo the missteps of the very institutions they vowed to replace.

Netflix, the harbinger of the streaming renaissance, transformed our living rooms into theaters and broke the weekly episode mold, giving birth to the binge-watching era. But when Ted Sarandos, its co-CEO, revealed the underwhelming performance of their advertising tier, it wasn’t just a company hiccup. It was an industry-wide siren, a warning that the titans of streaming might be treading on thin ice.

This shift can be, in part, attributed to the creeping specter of “enshittification.” An amalgamation of corporate greed, complacency, and a relentless drive for quarterly profits has started to eclipse the initial focus on user experience. 

The signs are all too familiar: tightening policies (akin to Netflix’s battle against password sharing), ceaseless price hikes, and nebulous fees, all designed to satiate Wall Street’s ever-growing hunger.

Amazon’s recent moves serve as a glaring example. Once celebrated for its disruption, Amazon now charges its loyal Prime subscribers $15 monthly (or an annual $139) for a gamut of services, including streaming. However, the recent introduction of ads to this premium experience, followed by the audacious offer to remove them for an additional fee, smacks of the very tactics traditional cable was lambasted for. The move, while potentially boosting short-term revenues, seems like a dance on the precipice of consumer tolerance. 

It underscores a disturbing trend where market vibrancy, competition, and customer contentment are sacrificed at the altar of immediate fiscal gains.

In an idealized world, the explosion of streaming platforms should’ve ignited a fierce battle for supremacy, spurring innovations and competitive pricing. But the present landscape paints a different picture. Blinded by Wall Street’s relentless demand for quarterly returns, many streaming giants seem hell-bent on extracting every ounce of value, often at the expense of product quality and consumer goodwill.

The consequences of this approach are manifold: a proliferation of pointless mergers, dilution of once-esteemed content (HBO’s recent quality dip stands out), and an overarching disregard for user experience. 

This bleak scenario is further exacerbated by industry-wide layoffs and a glaring reluctance to remunerate creatives fairly for their contributions.

The irony? Those at the helm of these corporate behemoths, exemplified by figures like Warner Brothers Discovery CEO David Zaslav, often appear to be navigators lost at sea. Despite their lofty titles and salaries, many give no indication of genuinely understanding, or even caring for, the intricate tapestry of their industry, employees, or consumers. The culmination of these missteps? Spiraling costs, subpar product quality, stagnant wages, widespread industry turmoil, and the damning shadow of “enshittification.”

But perhaps the gravest danger lies in the industry’s inability, or unwillingness, to recognize its trajectory. The blunders and myopia that plagued traditional cable and left it vulnerable to disruption are eerily mirrored in today’s streaming landscape. One can’t help but wonder: 

Are these giants, with their complacency and hubris, setting the stage for history to repeat itself?

As we navigate this evolving landscape, the hope remains that the streaming world will course-correct, returning to the user-focused vision that once made it revolutionary. 

But for now, as the lines blur between the old and new guards, consumers and industry stakeholders watch with bated breath, waiting to see how this story unfolds.

Pesach Lattin
Pesach Lattin
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pesach Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

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