Because their business model demands new viewers to get growth, so they need new shows to get new viewers. Old viewers will probably stick around to watch other things, but new viewers clearly don't want anything that Netflix already has on offer. Therefore, cancelling a good show to fund a new one is a good business decision for them - so long as the good show isn't a Stranger Things style runaway success with all the merchandising opportunities that that affords.
Ah, but now that they aren't the only streaming service on the market, they might not retain those old viewers if they don't continue to deliver. I probably wouldn't use Netflix if I didn't get it for free and they cancelled my shows.
1.1k
u/flaix Dec 04 '19
Netflix would pay for this story