Netflix Faces Risks in Licensing More Third-Party Content

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Netflix has been increasingly licensing popular shows from other streaming services like Paramount+ and AMC+ to bolster its content library. While this can provide a temporary viewership boost, experts argue that Netflix's long-term success depends more on investing in high-quality original programming that can build lasting loyalty with subscribers.

Why it matters

Netflix's shift towards licensing more third-party content raises concerns that the streamer is relying too heavily on shows it didn't produce to keep subscribers engaged. Experts warn that this strategy may not be sustainable, as licensed content will eventually leave Netflix's platform when deals expire.

The details

Netflix has struck deals to license shows like SEAL Team and Mayor of Kingstown from Paramount+, as well as content from AMC+ and HBO Max. While this can provide a temporary viewership boost, the experts argue that Netflix's biggest streaming wins have come from its own original blockbuster shows like Stranger Things and Wednesday. However, these original series often face lengthy delays between new seasons, giving subscribers less reason to stay loyal. Additionally, Netflix has a history of quickly cancelling many of its original series, leaving viewers frustrated when shows don't reach satisfying conclusions.

• Netflix recently licensed popular shows from Paramount+, AMC+, and HBO Max.

What’s next

As Netflix continues to navigate the streaming wars, industry experts will be closely watching whether the company's strategy of licensing more third-party content can provide long-term benefits, or if it will need to focus more on developing its own high-quality original programming to retain subscribers.