The Reason Why Many OTT Platforms will Fail

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Recently, Netflix has lost 2 million subscribers in the first quarter, and it is expected to lose another 2 million subscribers in another half quarter of 2022. But why? Why the most popular and biggest OTT platform is facing a massive downfall.

Well, this will happen with every OTT platform available in the market and because of this many OTT services have already been closed or will be closed soon, in this article we will try to find the reasons why this is going to happen, and can it be stopped? If stopped, then how?


Let’s start with the recently happened events, in 2020 the pandemic hit the world and people were forced to live inside the house. Many of them got a job, and many of them didn’t like students or housewives or the people who are retired.

In order to prevent themself from getting bored, they started to watch content, soon TV ran out as an option because of limited content plus broadcasting periods.

Then people started buying these OTT platform subscriptions because of its huge library of movies and series. These OTT platforms not only consist of their own produced movies, but also movies that were not produced by themself and are popular around the globe.

So, people started buying these OTT platform subscriptions, now since the theaters were closed many big movies were directly released on these OTT platforms and also for the same reason many production companies started facing losses since they can’t release new movies and produce new movies.

So, many big production houses like Disney, Viacom18, Sony, and Lionsgate started to think that it will be much better if they have their own OTT platform so, that they keep earning even in these times. So, a very big wave of OTT platforms came into the market.

And that’s where the next big problem started.

Too Many Options/Confusion

Let’s understand this with this example, Since Disney holds the MCU and owns every Marvel character copyright, Disney has started its own streaming service Disney+. This means now that shows like DareDevil, and Jessica Jones which are Marvel characters and shows were produced by Netflix and were available on the Netflix platform to stream but after the announcement of Disney, it was removed from Netflix. Now people have to buy an extra OTT app subscription in order to watch that show, which people don’t like.

And this started happening with every production house, they started their own OTT platform in order to make more money and keep control in their hand. Now, there are lots of OTT platforms available out there, charging differently for their content.

The reason why it’s bad for them is that just a sudden increase in competition, there was a time when WWE networks were on the top and has their own OTT platform where they used to put their matches but as their popularity goes down, they are now merged with Peacock TV. And this will happen with many OTT platforms.

Post Pandemic Era

Thank-god, the pandemic is now over, and we are again free to go outside and travel across the globe. This means people are not bounded to watch some shows or movies in order to keep themself entertained.

Plus, many people who casually watch movies can now go into theaters, which most people do because it definitely has a much better experience as compared to a mobile or TV. Plus, not to forget that new and big movies are now directly released in theaters, not on some OTT platforms.

And this was the main reason why Netflix has lost so many subscribers because those were the people who purchased Netflix just in order to keep themself entertained during a pandemic, but now since the pandemic is almost over they are busy in their day-to-day life. For these people, there was no first intention to buy Netflix for its content. They just purchased it because they were getting bored.

Quality is lost in the Quantity

If you just hear about some shows or movies without even searching stuff like “Top movies/shows of this platform” then you consider it to be famous. In the case of Netflix, you might hear about shows like Squid Game (very popular), Stranger Things (Groundbreaking), Witcher (Very unique) and other movies and shows, but these are very less you can count on your fingers and according to some data Netflix produces and publish 50+ new content every month.

So, you can clearly see why they are losing subscribers, this is the same case with Disney whenever a new show big show like Marvel or Star Wars comes they started gaining subscribers and whenever it ends they start losing subscribers.

Increase in Prices

Well, nothing to explain, we all can relate.


  • The first solution will be to of course increase the quality. If a big movie hit the theaters then no matter what people will spend money to watch this movie. This proves the point quality will work over quantity 
  • Next, this is bundle subscriptions mean paying little extra money to have other OTT platform subscriptions. Now, this is obvious that these companies will not shut down their OTT platforms for the customer’s sake. But what they can do, they can offer a bundle in which people can pay a few more and get their subscription too. This feature is already comes with Amazon Prime Video where you can pay a few extra to add another OTT service, but it is only available with Prime video this should be an option with other OTT platforms. 

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