Ten years after its Swiss launch, Netflix is clearly number one. And it is becoming more and more like the linear television of the past.
Author: Jürg Tschirren
18.09.2024, 09:18
When Netflix came to Switzerland ten years ago, the company staged a PR tour for its streaming platform with great fanfare: Netflix co-founder and CEO Reed Hastings personally received journalists in the penthouse suite of a luxury Zurich hotel. And two other top executives, Neil Hunt and Ted Sarandos, traveled to the country with them.
This shows how important the expansion was for Netflix at the time – in addition to Switzerland, the streaming service also launched in Germany, Austria and other European countries. In the first few years, the motto was: grow at any cost. The streaming system was built on the hope that high user numbers would lead to large market shares and ultimately to large profits.
The competition is no longer sleeping
Table of Contents
- 1 The competition is no longer sleeping
- 2 Reality TV instead of unusual formats
- 3 Has Netflix won the streaming war?
- 4 Streaming is becoming more like traditional television again
- 5 The cultural highlights of the week in the newsletter
- 6 How has Netflix’s strategy changed in Switzerland over the past ten years?
In order to attract as many viewers as possible to the platform, Netflix invested a lot of money in elaborately produced content such as the series “Stranger Things” or in unusual formats such as the animated tragic comedy “BoJack Horseman” with a depressed horse as the protagonist.
Legend: Swiss content In contrast to the launch in 2014, Swiss content such as the series “Neumatt” (Sophie Hutter during filming) or “Tschugger” can now be seen on Netflix. Keystone
In recent years, the company has invested well over 100 billion dollars in its own films and series – in 2024 alone, this figure will be around 17 billion. This is also because there are more and more competing services such as Disney+ (2019), HBO Max (2020) or Paramount+ (2021) that have gradually withdrawn their content from Netflix and are now showing it on their own platforms.
Reality TV instead of unusual formats
But none of these competitors has been able to catch up with Netflix so far: With an estimated 3.4 million users, the platform is in Switzerland the clear number one. In the USA, too, Netflix claims more than twice as much of the TV pie as second-placed Amazon Prime Video.
Has Netflix won the streaming war?
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Die Pay seem to speak for themselves: Netflix reaches 8.4 percent of TV viewers in the USA. Amazon Prime Video is a distant second with 3.4 percent (and benefits from the fact that its streaming service is linked to an Amazon shipping subscription). Disney+ only has 2.1 percent and Apple TV+ doesn’t even make it into the top 10 with a meager 0.2 percent.
If you look beyond the pure pay streaming platforms, however, the picture looks different: YouTube is ahead of Netflix with 10.4 percent, so it reaches more viewers. In addition, more than 20 percent of people in the USA still watch television via antenna and 26.7 percent via cable.
The competition still has consequences: just three years ago, almost all of the most watched streaming titles were available on Netflix. Today, that number is only a little more than half. And the competition is also making it more difficult for Netflix to continue to grow – at least in its home market of the USA and in Europe.
Legend: From series to real Netflix has turned its hit series «Squid Game» into a real game show – which is probably much cheaper to produce. imago images
That’s why unconditional growth is no longer the platform’s top priority today. Netflix would rather retain its existing audience while simultaneously cutting costs. The streamer is therefore investing significantly less in unusual formats designed to attract new customers and is instead focusing on quantity: on cheaply produced mass-produced goods such as reality formats, for example. Because the larger the library of available titles, the more reasons there are to stay loyal to Netflix.
Streaming is becoming more like traditional television again
Investors now also want to see that the other major platforms can not only grow, but also make money – something that none of them has managed to do to date. This is why advertising has returned to streaming in recent years: Anyone who wants to be spared from this on Netflix, Disney+ and the like pays a higher price for their subscription.
Ten years after Netflix turned the Swiss television landscape upside down, we are almost back where we started: the screen shows more and more mass-produced goods and advertising. And because the content is now divided across many different platforms, the subscription costs are the same as or even higher than those of pay TV in the past.
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Radio SRF 1, 18 September 2024, 07:10 a.m.
How has Netflix’s strategy changed in Switzerland over the past ten years?
Netflix at 10 in Switzerland: The Rise to Dominance and the Shift towards Linear TV
Author: Jürg Tschirren | Date: September 18, 2024
It’s hard to believe it’s been ten years since Netflix made its grand entrance in Switzerland. Back in 2014, the company’s co-founder and CEO, Reed Hastings, personally received journalists in a luxurious Zurich hotel penthouse suite to unveil the streaming platform. With great fanfare, Netflix launched its services in Switzerland, Germany, Austria, and other European countries, marking a significant expansion milestone.
Growth at Any Cost
In the initial years, Netflix’s motto was growth at any cost. The company invested heavily in producing high-quality content to attract as many users as possible to its platform. This strategy led to the creation of hit series like ”Stranger Things” and unique formats such as the animated tragic comedy “BoJack Horseman,” which resonated with audiences worldwide. The goal was to achieve high user numbers, leading to large market shares and, ultimately, substantial profits.
The Competition Heats Up
Fast-forward to today, and the competition is no longer sleeping. With the emergence of new streaming services like Disney+, HBO Max, and Paramount+, Netflix faces stiff competition for user attention. These competing services have withdrawn their content from Netflix, forcing the company to adapt its strategy. Despite this, Netflix remains the clear market leader, with an estimated 3.4 million users in Switzerland and a significant lead over its competitors in the USA.
From Unusual Formats to Reality TV
To stay ahead, Netflix has shifted its focus from unusual formats to more traditional content, such as reality TV. The company has invested well over $100 billion in its own films and series, with a projected spend of around $17 billion in 2024 alone. This shift towards more mainstream content is evident in the rise of reality TV shows and the decrease in experimental formats. The platform now features Swiss content, such as the series “Neumatt” and “Tschugger,” catering to local tastes.
Has Netflix Won the Streaming War?
So, has Netflix won the streaming war? With its dominance in Switzerland and the USA, it’s hard to argue against its position as the market leader. However, the competition is fierce, and new players are emerging. To maintain its lead, Netflix must continue to innovate, produce high-quality content, and adapt to changing user preferences.
The Rise of Linear TV 2.0
Interestingly, Netflix’s evolution has led it to adopt some characteristics of traditional linear TV. The platform now features a more structured programming schedule, with new content released on specific days and times. This shift towards a linear TV-like experience is a departure from its early days as a purely on-demand streaming service. As the streaming landscape continues to evolve, it’s likely that Netflix will continue to blur the lines between traditional TV and online streaming.
Netflix’s ten-year journey in Switzerland has been marked by rapid growth, innovation, and adaptation. While the company faces stiff competition, it remains the dominant player in the streaming market. Its shift towards more traditional content and linear TV-like features is a clear indication of its desire to appeal to a broader audience and maintain its position as the leading streaming service.
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