Feel that fatigue in binge-watching?

Viewers are reportedly switching off sequels to Netflix's popular series, pointing to struggles that video streaming platforms are having in creating engaging content. It takes a while to make a series, which encourages binge-watching. But the delay causes audience loss. Netflix is reworking its strategy to scatter its winners across quarters. Yet, subscriber growth is tepid. Its troubles are symptomatic of the streaming video industry, which is trying to get its business model right. OTT apps built their impressive subscriber base on people switching from expensive cable TV, but now have to deal with rising fees and user fatigue.

Big-budget original content and overzealous bidding for live sports are squeezing margins. Platforms have multiplied, and subscribers now pay quite a bit to Netflix, Prime Video, Disney+ and Max for shows they seek. Viewers are snacking on shows, cancelling subscriptions immediately afterwards. Ad-supported tiers, smaller libraries of titles and screen restrictions are contributing to audience discomfort. All this plays out on a TV screen that works alongside a smartphone or a laptop as a second screen. Viewer attention wanders during commercial breaks and slow scenes. Streaming video platforms are yet to figure out a way to match engagement levels of social media.

Audience behaviour has changed substantially in favour of short-form, user-generated content on Instagram and, outside India, TikTok. Netflix and its rivals are now having to pit their premium curated libraries against community-driven entertainment. Technology favours algorithmic feeds that push a continuous stream of content to users on social media over catalogues of video streamers. The two platforms are feeding off each other, with social media providing OTT players with discoverability while streaming giants fund original programming from digital creators. There is room for much greater convergence as viewer attention flits between screens. The market for premium programming will grow with improved engagement.