The popularity of Netflix’s originals has leveled off as the company faces slowing growth and layoffs

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  • Audience demand growth NetflixOriginal content is slowing down, according to a new report.
  • Data firm Parrot Analytics said Netflix needs to “refocus its content strategy”.

Netflix is ​​getting worse.

The streamer recently said it lost 200,000 subscribers in the first quarter, its first loss in a decade, and it expects to lose 2 million more users in the second quarter. The company laid off at least 150 employees on Tuesday as it faces slower growth and reassesses its priorities.

The popularity of their original shows is also slowing.

Data company Parrot Analytics, which measures viewers’ demand for content, has released its report for the first quarter of 2022. streaming The report, released on Tuesday, showed that global demand growth for Netflix’s original series has flattened over the past year as more streaming competitors enter the space.

Parrot Analytics’ demand metric reflects interest and engagement with the content, or the overall popularity of the content.

Netflix originals face competition from the more established IP on other streaming services like Marvel and “Star Wars” on Disney+ or DC on HBO Max.

The chart below shows the growth in demand for Netflix’s original content:

Parrot Analytics

“As demand for Netflix originals and its entire catalog continues to decline domestically and globally as demand for originals on other services increases, Netflix must refocus its content strategy to extract the most value from every series ordered,” wrote the Parrot Analytics report. “focusing on the longevity potential of each series for underserved audiences, rather than relying on increased content spend.”

Netflix is ​​taking some measures to combat slow subscriber growth, including blocking password sharing. In its first-quarter earnings report, it said 100 million people use Netflix through a shared password, in addition to its 200 million paying subscribers.

It also plans to offer a cheaper ad-supported tier, which it has resisted so far.

“Introducing an ad tier should theoretically help slow down in key regions like UCAN and LATAM and possibly bring back customers who cancel for a competitor,” the report said.

But when it comes to content, Parrot Analytics says Netflix wants to see demand levels rise again when popular series like “Stranger Things” and “The Umbrella Academy” return with new seasons this year.