Answer paragraph:

An evident shift in focus on television from movies:

While Netflix offered a commendable large selection of 6,494 movie titles in 2014, a whopping 1,968 movies have been quietly dropped from its catalog since then, according to the data provided by the website Cord Cutting. The loss in movies seems to have been compensated by an increasing focus on television shows and series. While 80.1% of Netflix’s library was occupied by movies in 2014, the percentage has shrunk to 78.5% today. On the other hand, television shows which occupied a mere 19.9% of library space in 2014 occupy 21.5% now. In other words, while Netflix offered a selection of 530 television shows in 2010, it offers a massive selection of 1,569 shows today. 

A strategic focus on the latest movies:

What does the competition have to do with Netflix’s shrinking library?

Thus, while Netflix won streaming rights to the internationally popular US television sitcom Friends, it lost the rights to stream the classic US series Seinfeld to Hulu. Similarly, Hulu beat Netflix at clinching rights to stream the spinoff of The Walking Dead called Fear the Walking Dead. It is important to note that Netflix originally had exclusive rights to the AMC series The Walking Dead and Mad Men back in 2011 when Hulu was not much of a threat. 

Why is Netflix spending billions on original content?

The decision to spend over $5 billion on original content in 2016 is understandable in this context. Developing original shows is a lucrative affair for Netflix as it is not only easy to market but also makes redundant the hassle of licensing and engaging in cutthroat bids for streaming rights of high-value outside content. In 2016, Netflix developed a magnanimous 600 hours of original content which equates to 25 days of watching time for the average viewer. 

Rather than spending billions trying to win rights to a movie that is simultaneously streamed by other OTT platforms, Netflix now focuses on exclusivity. If you are a Netflix subscriber, you now have access to a range of content that is unavailable on any other streaming platform. At the same time, Netflix statistics show that viewers across the world watch original content much more than anything else on Netflix which proves the strategic win of this shift to original exclusive content.

Conclusion

While competition has undoubtedly constricted Netflix’s viewing library, with a focus on original content and the latest movies, Netflix seems to have developed a commendable marketing strategy to remain relevant to the viewer amidst a wide choice of streaming platforms. The focus on quality original content has also reaped fruits with legendary directors like Martin Scorsese and Alfonso Cuarón teaming up with Netflix to produce Netflix original movies like The Irishman and Roma respectively which got nominated for the Oscars. The loss in the number of movie titles does not seem to be unequivocally bad news for Netflix after all.

Why is the Netflix catalog smaller for other countries compared to Netflix USA?

This is because it is more difficult to get streaming rights internationally than it is to secure the same within national boundaries. Yet, with each passing year, international Netflix catalogs are getting richer as Netflix improves its international marketing strategies and reach.

Is the decrease in quantity compensated by an increase in quality in Netflix’s latest catalog?

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