New data suggests Netflix could be just $5 away from collapse

The online media streaming scene has dramatically evolved in recent years. Seemingly in real time, we've seen the effects of ever- increasing subscription fee costs, the cramming of more advertisement space than ever before, tighter and more orchestrated price laddering schemes, and a reduction in overall content available at a per-service level.

Anecdotally, there appears to be a growing sense of streaming and subscription service fatigue at the consumer-facing level. A number of factors are likely to be playing a role in this development: unsustainable price hikes, media conglomerate consolidation, the stratification of streaming platforms, and less forgiving economic conditions across the board.

Today's streaming bubble is bound to burst

"You either die a hero, or live long enough to see yourself become the villain"

Netflix is perhaps the most ubiquitous media streaming service of them all, and rightfully so. Its deep-seeded TV and film roots go as far back as the late nineties, when the company was in the mail-order DVD rental business. When the company pivoted over to an internet-based streaming platform model, history was made overnight.

The convenience of early-era Netflix was unprecedented. On-demand access to a massive catalog of shows and movies, including many all-time greats, was simply unheard of at the time. The ability to stream content via smart devices or game consoles through the Netflix app was a killer selling point, and it could all be had for a single recurring fee of $9 per month (roughly $13.28 adjusted for inflation).

It wasn't long until problems began to arise, however.

It wasn't long until problems began to arise, however. Once various intellectual property (IP) holders caught a whiff of Netflix's lucrative business model, and once legacy cable and satellite TV networks began to feel the pinch, the entire media landscape was irreparably altered.

One by one, companies began to pull their shows and films off of Netflix, opting to launch their own streaming services in lieu of any middleman. This has led to today's situation, in which there are simply too many streamers to keep track of, each with its own walled-off content library.

Unfortunately, this fragmentation has resulted in the reemergence of the very concept consumers turned their back against when switching to Netflix in the first place. These days, the saturated streaming app scene resembles that of the cable bundles and packages of yesteryear.

If there's one thing that seems certain, it's that the modern streaming ecosystem is a bubble that's just waiting to burst.

To add insult to injury, rising costs, inflation, and ad proliferation have all worked to pull the rug under steaming's once-exciting prospects. A series of ongoing media consolidations makes the situation an even more volatile one, with no clear end in sight.

If there's one thing that seems certain, it's that the modern streaming ecosystem is a bubble that's waiting to burst. Pocket-lint's own Managing Editor, Amanda Kondolojy, recently put it fairly succinctly: "Streamers just can't sustain a service that is more expensive and that gives consumers less every year."

Physical media is still king

We're witnessing a revitalized interest in the ownership, collection of, and playback of physical media formats

As convenient as internet streaming services are on the surface, they come with plenty of sacrifices. Recurring payment fees add up over time, and yet ownership of your favorite media remains nonexistent -- you're simply paying for a (revocable) license to access content. IP holders are under no obligation to preserve their media into the future, and censorship is in some cases a very real threat.

Licensing arrangements are complex, and the availability of shows and movies suffers as a result. I know I'm not the only one who's had a particular show in mind, while not knowing where to turn to or what service to sign up for in order to actually stream it.

Interestingly, physical media is having its own renaissance at the moment. Vinyl records are more popular than ever, and there's a growing movement of people opting to enjoy their films and TV via DVD, Blu-ray, or even the tried-and-true VHS tape format.

For the time being, I'll continue to build up my physical media collection of discs and cassettes.

As for what the future holds for Netflix et al., my guess is as good as yours. Once the media consolidation dust settles, I'm hopeful of a return to a more sensible and streamlined selection of streaming services. I'd love to see an industry-wide return to form -- a future in which content can be found at a reasonable price point, and without the omnipresent threat of another price hike on the horizon.

For Netflix in particular, I reckon that its best path forward is to double down on original content -- Squid Game, Stranger Things, and Bridgerton prove that the company is capable of producing high-quality media that can stand the test of time. Then again, Apple's foray into TV+ original content hasn't exactly been a cash cow, so nothing can be said for certain.

For the time being, I'll continue to build up my physical media collection of discs and cassettes. Now, if you'll excuse me, there's a Blu-ray begging to be slotted directly into my home entertainment setup.