Netflix faces the prospect of losing a large portion of its user base as the effects of the 2023 writers’ strike intensify.
The streaming giant, which lost millions of subscribers in 2022 due to the cost of living crisis, has announced that as part of its role in the ongoing dispute between the Writers Guild of America (WGA) and the Alliance of Motion, users Image and Television Producers (AMPTP) may suffer similar declines.
The WGA, which represents more than 20,000 writers in the entertainment industry (according to the U.S. Department of Labor), summarizes the reasons for the strike. (opens in new tab) ), has been trying to negotiate better working conditions with AMPTP. Why? WGA members say the surprising rise of artificial intelligence (AI) such as ChatGPT and Bard could replace them in the industry, as studios may seek to leverage AI as cheap labor. I am concerned about WGA members are also demanding better compensation for studios, especially those operating the world’s best streaming services such as Netflix and Prime Video.
AMPTP, which represents some of the world’s most famous film and television studios, refuses to be associated with the WGA. Then the WGA, which represents people involved in movies, TV shows, podcasts, documentaries, news outlets and more, voted against the strike in mid-April, winning 97.5% of his members (according to Gizmodo). (opens in new tab) ) vote to leave. The strike will begin at 12:01 a.m. PT on May 2 and will continue until AMPTP and the WGA agree to a new deal.
stranger things ‘The final season could be affected by a writer’s strike. (Image credit: Netflix)
So how does Netflix take all this into account? It all started on April 18, co-CEO Ted Sarandos told reporters (via Deadline). (opens in new tab) However, Sarandos also said he was confident Netflix could get through the strike, stating: We provide better service than other members. ”
Unsurprisingly, Sarandos’ comments were not well received by WGA members or those standing in solidarity with them. Now, rumors suggesting Netflix played a major role in the breakdown of negotiations between her WGA and his AMPTP only add fuel to the fire.
Talk about the latest episode of John Rocha’s The Hot Mic podcast (opens in new tab) , industry insider Jeff Snyder claimed that the wider industry blamed Netflix for the writers’ strike. “We are doing it,” says Sneider. “And…as studios are actually ready to sign deals. It’s Netflix that’s refusing to sign deals because they don’t need to show transparency in streaming numbers. That’s, you know, , is a big part of it.”
Snyder was quick to argue that he was unsure about the validity of the story. His sources weren’t 100% sure either. As a result, WGA members and more generally Netflix users have begun calling on people who have subscribed to their streaming platform to cancel their subscriptions. That would hit Netflix where it would be hit hardest: the entire revenue stream.By the way, according to Vanity Fair Gabriel Sherman (opens in new tab) Netflix has already lost 1.7% since the strike began.
Tawina Benavidez Bhattacharya (opens in new tab) Netflix My Life With The Walter Boys was one of the first WGA members to say it would cancel all streaming subscriptions, including Netflix, until the strike was resolved. Others soon followed suit. Bosch Writer Dylan Park-Pettiford (opens in new tab) voice actor Janine Granda (opens in new tab) and Tell Me Rise ‘ scribe Megan Oppenheimer (opens in new tab) A quick Twitter search for the phrase “writers strike canceled” reveals many more people (entertainment industry employees and Netflix users) doing the same.
This isn’t the first time Netflix has faced the potential loss of users. In its Q1 2023 earnings call, Netflix announced that its password-sharing crackdown plan was in the works, but the streamer said that after rolling out a password-sharing crackdown plan in Latin America, paying customers were hit hard. However, Netflix bullishly said it expects users to reactivate their accounts or sign up for the first time in a few months, and people are starting to see the service’s latest blockbuster. I’m afraid I’ll miss .
It’s unclear how Netflix’s writers’ strike rumors will affect its subscriber base. The number of people ending their subscriptions now looks like a ripple rather than a wave of cancellations. May keep most of the base.
However, the problem Netflix may have is if users start to get upset about the delayed return of its most popular shows.like stranger things season 5, Wednesday season two, night agent season two, squid game season two, and arcane All of Season 2 is in active development. The screenwriters’ strike means that all his WGA members (and those who support the strike) have brought down the tools to write scripts for these hugely successful TV series. An incomplete script means that principal photography for these productions cannot begin, resulting in further delays to their release.
If Netflix’s global user base grows tired of waiting for reruns of each of these shows (depending on how long the writers’ strike lasts), more subscribers could start turning their backs on streamers. I have. If that happens, Netflix will have no choice but to return to the negotiating table with other studios and reach an agreement with the WGA.
Regardless of how important Netflix’s role is in all of this, there’s one thing we can all agree on. WGA members have the right to strike until a resolution is reached if they believe they are not getting a fair deal. For you, Netflix and your company.
Wondering how to cancel your Netflix subscription? Here’s why the service should (and shouldn’t) be discontinued in 2023. And if you’re considering whether to leave the service, watch these nine canceled Netflix shows before they cancel.
