Netflix with sneak previews – measure against terminating long-term subscribers?

Netflix is ​​looking for subscribers for sneak previews. Sneak previews are common in the film industry for those who aren’t familiar with them. Content is shown to a test audience, and then a questionnaire asks that audience to rate the content they’ve seen. This used to be the norm in cinemas, often on a fixed day. Those who live in Los Angeles at the heart of the film industry can also take part in test screenings by the on-site studios. And that’s exactly why Netflix is ​​looking for subscribers who watch previously unreleased in-house productions and give feedback.

The sneak preview program is said to have been running since May; but you won’t hear much from viewers because they have to sign a non-disclosure agreement. Hardly surprising, after all, this is previously unreleased material that may even be changed if the viewer feedback is negative. Amazon did something similar at one point: They produced pilots that were then shown to Prime Video viewers and they could then vote on which series to go into production.

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In Germany there are currently no subscriber feedback panels, as they are officially called. The US company limits the program to the home market. The viewers are invited by email, but the criteria are not known. It is said that Netflix wants to build a small community of film and series enthusiasts who will rate the content. Test screenings are feared in Hollywood – some films and series ended up on the editing table and during reshoots based on viewer feedback. It remains unclear whether this is also the case with Netflix. But you at least collect the feedback and can react to future projects.

The long-term customers are leaving

Why Netflix is ​​launching sneak previews is a matter of debate. According to the latest reports, the company is also increasingly losing long-term subscribers after the boom caused by the corona pandemic came to an end. Long-term viewers in particular often criticize that the quality of the content has declined, even though Netflix invests a lot of money in productions. More class instead of mass has been demanded for a long time. The initial response was to bring big names on board for Netflix movies. In the case of series, the situation is a bit more complicated and, in general, the content purchased from third parties is also becoming less and less, as the market is subject to fragmentation.

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According to research, this is leading to Netflix generally not being able to keep viewers as long as it used to be. They are increasingly subscribing for a short time, consuming the desired content and canceling – certainly also a side effect of market fragmentation; and yet Netflix must have an interest in retaining customers for as long as possible in this environment. According to the data collected, the gap is widening: subscribers who have not been there for a year cancel in 70 percent of cases within 12 months and new subscribers cancel in 60 percent of cases after three months. The long-term subscribers have been quite stable so far (6 percent of cancellations), but the erosion should also become increasingly widespread. In absolute terms, Netflix lost 3.6 million subscribers last quarter; significantly more than the 2.5 million in the last five quarters.

All this stands in contrast to a noticeably increased subscription price worldwide and especially on the home market, which competes with competitors. Sneak previews will therefore probably only be one of the changes that Netflix will make. A hybrid model is currently being prepared, which is partly financed by advertising and thus reduces the subscription price. They also hunt down account sharing and charge them with an additional fee.

Sources: Variety, The Verge, the information