Netflix is driving buzz ahead of this season of 'Stranger Things,' but the branding push reveals a shortcoming in its business model: It is a perpetual renter and not an owner of content.
Netflix is expected to shell out around $15 billion this year to secure exclusive content for its streaming service.
Baskin Robbins has partnered with Netflix to bring four collectible quarts of unique ice cream flavors to stores in honor of the third season of "Stranger Things."While the extensive reach of Netflix's marketing arm is driving buzz ahead of this season of "Stranger Things," this branding push reveals a big shortcoming in its business model: It is a perpetual renter and not an owner of content. Netflix makes the majority of its money from subscriptions.
Claire Foy as Queen Elizabeth II and Matt Smith as Philip Mountbatten, Duke of Edinburgh in The Crown a Netflix OriginalHowever, at that time, the shows were exclusively made by other companies and then licensed by Netflix. "Wet Hot American Summer: First Day of Camp," which launched in 2015, was the first show to actually be produced and owned by the company.
Part of what Netflix is spending on is its own original content, with the idea these shows would help drive subscriber growth. But it's difficult to say what drives members to sign up and stick around. The company doesn't often release viewership data for its shows or movies and, since Netflix releases so many new programs and shows each month, it's difficult to connect a spike in members to one individual program.
Internationally, Netflix has grown its subscriptions to nearly 81 million, up from just 1.86 million in 2011. Since 2015, the company has seen double digit growth in this area. Altogether, the company has just under 150 million subscribers.
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