As well as producing hit shows, Netflix has developed a reputation for canceling programs prematurely, with viewers growing despondent. Recently, Newsweek spoke to three experts about why the company keeps canceling shows before they find their audience and whether it’s sustainable long term.
This month alone, the streaming giant has decided to not renew multiple beloved series, with fans taking to social media to express their frustration and threatening to cancel their memberships to the platform.
The modern-day Greek mythology show KAOS, starring Jeff Goldblum as Zeus and Janet McTeer as Hera, was canceled after only one season—and just over a month after its release. This was a huge shock to fans, as not only did it have a stellar cast and storyline, but it also featured in the platform’s Top 10 charts during its first month. However, The Hollywood Reporter assessed the show’s initial 14.9 million views over its first four weeks as “a middling number by the streamer’s standards.”
The streamer also announced that That ’90s Show—which holds an 81 percent critical approval on Rotten Tomatoes—and Unstable—starring and co-created by Rob Lowe and his son John Owen Lowe—have not been renewed. According to Deadline, the decision to cancel Unstable comes after its sophomore series failed to break into the streamer’s Top 10.
Netflix has become renowned for its mercilessness in canceling shows, but it has argued that it cancels those with the lowest viewership. The challenge in verifying this is that Netflix is famously secretive regarding viewership rates for their shows and compiles all of their “most-watched” lists internally.
Newsweek emailed a spokesperson for Netflix for comment on Friday.
According to Dan Goman, the CEO of Ateliere Creative Technologies, a cloud-native media technology company, Netflix’s decisions are driven by data and performance metrics. While a show might seem like it’s safe if it has a strong Hollywood cast, this isn’t always the case, which the cancelation of Kaos and Unstable have both proven.
“Netflix’s data-driven approach plays a key role in its rapid content decisions, including the swift cancellation of shows like KAOS. While star-studded casts may attract initial attention, Netflix’s reliance on proprietary data—much of which isn’t shared publicly—offers them unique insights into viewer behavior. This allows Netflix to make decisions that may seem abrupt but are based on deep performance metrics. These could include not only raw viewership numbers but also engagement duration, drop-off rates, and audience retention within specific demographics,” Goman told Newsweek via email.
He continued: “The access to this private data gives Netflix a more nuanced view of how a show performs, which could explain why they’re so quick to cancel projects that don’t meet certain thresholds, even if they show potential for growth. Their content subscription business thrives on efficiency, and by prioritizing high-performing content, Netflix ensures their catalog remains sharp and engaging, a necessity in a fiercely competitive market.”
Jeff Goldblum as Zeus in “KAOS,” Rob Lowe as Ellis and John Owen Lowe as Jackson are seen in “Unstable.” Inset, the Netflix logo is seen in Los Angeles on October 19, 2021. Newsweek has recently spoken to three experts about why Netflix keeps canceling its shows prematurely.
Justin Downing/John P. Fleenor/Robyn Beck/Netflix/AFP via Getty Images
While people might think that Netflix’s willingness to pull the plug early on underperforming content is a sign of failure, according to Goman, it is a testament to the entertainment company’s commitment to “running a high-performing business.”
“By quickly eliminating content that doesn’t align with their performance metrics, they can focus resources on shows that have a better shot at sustaining long-term viewer engagement, helping them maintain their position as a leader in the streaming world,” he said.
“While this data-centric approach might alienate some audiences or talent, it positions Netflix as a lean, performance-oriented company, continuously fine-tuning its offering for maximum efficiency and profitability. Looking ahead, this trend could push the industry to rethink how it fosters audience loyalty, as more platforms are likely to adopt similarly tailored, algorithm-driven strategies to match content with niche viewers.”
Stefan Lederer, the CEO and founder of Bitmovin, an Emmy award-winning start-up that provides video streaming infrastructure to various companies, agrees that Netflix’s decisions are all data-based. However, he thinks this decision will damage the company in the long run.
“While data will be driving Netflix’s decision to renew or cancel shows, its graveyard of unfinished storylines and shows that didn’t get the opportunity to find their audience is growing quickly,” Lederer told Newsweek via email. “One critical metric Netflix uses when deciding whether to keep or bin a show is its completion rate. The general rule of thumb is that if 50% of the show’s audience doesn’t complete the season, it is unlikely to be renewed. From a pure business perspective, this makes sense because Netflix only wants hit shows to attract more advertisers and boost its revenue from advertising. Additionally, it doesn’t make sense to invest in a TV show that does not resonate with audiences.”
He continued: “However, there is an argument to be made that Netflix is too hasty when canning shows. Not every TV show will immediately become a worldwide phenomenon like Stranger Things or Squid Game. Some TV shows have a slower burn and build-up viewership over time. For example, the first season of the U.S. version of The Office was deeply unpopular with audiences, but they tweaked the format and some of the characters for the second season, and it went on to be viewed as one of the greatest sitcoms of all time.”
Kurtwood Smith as Red and Debra Jo Rupp as Kitty are seen in “That ‘90s Show.” The show, a sequel to “That ’70s Show,” has been canceled by Netflix.
Netflix
Lederer told Newsweek that Netflix needs to consider the fact that canceling TV shows too quickly could impact consumers’ willingness to watch new shows if they believe it is likely to be canceled after one season.
“Overall, Netflix needs to strike a balance between canceling shows that have performed poorly while also taking the occasional gamble on shows that may not have taken off in one season, but there’s evidence it’s building a following and could become a hit over time,” he said.
Elizabeth Cox, founder and CEO of independent production company Should We Studio, agrees that Netflix’s approach to canceling shows is creating upset, but not just with viewers, but with the entertainment industry as a whole.
She explained to Newsweek via email that misaligned incentives between studios and distributors like Netflix, creators and audiences is creating an industry “where no one’s happy.” Cox believes that keeping unique shows that have a passionate fan base would help Netflix in the long run.
“Netflix wants to make money, creators want to make art, and audiences want to be entertained, and while it sounds plausible in theory that the audience being entertained translates directly to the studio/distributor making money, I don’t think the largest—and most profitable—audience is necessarily the happiest and most committed audience,” she said.
Cox continued: “Shows with a degree of wackiness and specificity stand out and generate committed fans, though maybe not as many as those which generate tons of views but people perhaps feel less passionate about. The shows that generate the most discussion and buzz aren’t often that widely viewed and awesome shows get canceled all the time. But judging performance based on views doesn’t capture that kind of attention, nor is it clear how views are that important as an indicator of money-making potential on a subscription-based platform.
“Independent studios and productions improve the creative variety and diversity of what’s available. Cancellations like this being so common is one reason why it’s important for creators like me to hang on to the rights to my own work, but it’s really difficult for indies to reach a wide audience, even when they make it onto platforms like Netflix.”
