While Netflix has become a mainstay in just about every household around the country, delivering a wide array of unique original TV shows and movies to fit every taste imaginable, it can also be a bit of a heartbreaker. This especially applies to TV fans, because the streaming service has made a habit over the last few years of cancelling shows after just a couple of seasons. That’s not exactly uncommon for any company that produces a high volume of television, but it’s difficult to understand with Netflix because the service doesn’t release its actual streaming numbers. No one really has a clue how well a show is doing, so it may be a big surprise when a beloved series gets the axe.
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As it turns out, the data backs up Netflix’s reasoning behind some of these tough decisions. It might not be viewership data that supports these moves, but rather the cost of a series vs. how many new viewers it brings in.
A new article from The Information breaks down this issue, explaining that money is the motivating factor here, and that the return on later seasons of a show, no matter how popular, don’t drive the numbers.
To put it plainly: New shows are cheaper. When a series launches, everyone involved gets paid a certain amount of money. After two seasons of that series being considered a success and being enjoyed by fans, it’s usually time for new contracts with a pay bump for those involved. Sounds fair, right?
Well, for Netflix, the costs of those raises aren’t exactly worth the return of the show’s traffic. The third season of a series will see dedicated fans tuning in, but likely doesn’t have the same return as a new show that everyone can start from the beginning.
