Netflix keeps producing, even as it loses popular shows to competitors

Netflix reports earnings Tuesday. The company saw record growth in 2020, despite the streaming market becoming increasingly more crowded with competitors HBO Max, Hulu, Amazon, Apple TV+ and Disney+. 

So during the pandemic, Netflix has continued making and releasing major hits. “The Queen’s Gambit,” a show about chess, was streamed by 62 million households, according to the company. 

Netflix wants more hits, like its escapist period costume drama “Bridgerton.” 

And this year, the company plans to release a new movie every week. Media analyst Tim Hanlon said that’s because some of Netflix’s most popular shows have gone back to their creators. For example, “The Office” is now streaming on NBC’s Peacock.

“It’s a fragile balance between milking libraries — which they don’t own, but are basically leasing or renting — and pumping billions of dollars into original exclusive content that may or may not resonate or succeed,” Hanlon said.

Yep, billions. An estimated $19 billion in 2021, to be exact. That’s partly about growing audiences. 

Households of color are increasingly subscribing to streaming services, said Stacie de Armas of Nielsen. 

“People want to see themselves on screen; they want to see their stories,” she said.

That’s also driving services like Netflix to create diverse shows and movies.