Jakarta - After failing to acquire Warner Bros. Discovery, Netflix is now changing the direction of its business strategy. The main focus is shifting to strengthening content and expanding the advertising business - two pillars that are considered to be new growth engines.
The move comes ahead of its latest financial performance report, where investors are paying close attention to how Netflix is keeping momentum amid the tight competition in the streaming industry.
Ads as a New Money Machine
For years, Netflix was known as an ad-free platform. But the landscape is now changing. The company is getting serious about developing an ad-based subscription tier to reach a segment of users that are more price-sensitive.
This strategy is not only diversification, but also a response to slowing customer growth in some major markets. With advertising, Netflix opens up new sources of revenue without having to rely entirely on an increase in the number of subscribers.
King's Content
Despite expanding into advertising, Netflix has not abandoned its main DNA: content. Major investments continue to be directed at the production of original films and series to maintain the attractiveness of the platform.
Competition with other players such as Disney and Amazon makes premium content a key differentiator.
The failure to acquire Warner Bros Discovery also means Netflix must continue to build its own content library, rather than relying on expansion through a major merger.
Price Increases, Income Follows
In addition to advertising, revenue growth is also expected to come from an increase in subscription prices in a number of markets. This strategy has been carried out several times by Netflix and has proven to be acceptable by most users.
However, risks remain. Rising prices amid the many streaming alternatives could drive churn if not offset by strong content quality.
Realistic Strategy in the Midst of Industry Consolidation
Warner Bros Discovery's acquisition failure shows that large expansion steps are not always smooth. However, Netflix's decision to refocus on its core business is considered a realistic step.
Instead of pursuing expensive consolidations, companies are choosing to strengthen their proven foundations: compelling content and more flexible monetization.
New Wars Streaming Episode
The streaming industry is now entering a new phase - not just a war of subscriber numbers, but also efficiency and profitability.
With a combination of advertising, content, and pricing strategies, Netflix is trying to stay at the forefront. The question now: is it enough to maintain dominance in the face of increasingly brutal competition?
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