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Is viewership valuable to Netflix? I would argue not as they make money on signups, not use.

Viewership costs money, so if a show cannot attract new users or retain current ones, you might want to throw away that viewership.



This is a really insightful take that I feel most other commenters miss. The intuitive metric of views is not what is good for Netflix's bottom line, quite the opposite. The best customer for Netflix is the one who stays subscribed but never uses it.

I believe the reason most people miss this is that for traditional networks, more viewers are strictly better; more viewers result in more ad revenue, and the marginal cost of an additional viewer is zero. For Netflix however, this is inversed: an additional viewer does not add any revenue (assuming they were already subscribed), but still adds cost.

The economic model of Netflix seems to be at odds with user interests.


Yes? You pay monthly, not just once on signup.


Once you're a customer, your less likely to leave.

So the goal is too attract new customers.. which is best done by the new hot show, not season 2 of the last hot show.

So little incentive to renew




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