Netflix’s sequel problem is growing too big to ignore

Netflix, the streaming giant that propelled binge-watching into mainstream culture, is now struggling to keep audiences hungry for seconds.

A growing number of users are abandoning popular Netflix shows after their debut season, according to a new Bloomberg analysis ($).

Based on the streamer’s internal viewing data:

• One Piece, one of Netflix's biggest hits of 2023, lost more than 30% of its audience in Season 2.
• The Night Agent shed roughly half its viewers for Season 2, then another 35% for Season 3.
• Beef saw its audience drop by 70%+ in-between seasons, while the latest season of Avatar: The Last Airbender fell by 60%+ based on initial data.

The trend has been building for a while

Unlike broadcast TV programs, which often peaked in the middle of their run thanks to word of mouth, Netflix shows have historically delivered their biggest ratings in the first season.

• The streamer has also earned a reputation for canceling many shows—even breakout hits—after only a season or two, and received criticism for shows taking too long between seasons.
• At the same time, TikTok, YouTube, and other social media sites have made it even harder for TV shows to capture and hold viewers’ attention.

But the especially sharp drop in viewership for many recent Netflix hits is a major source of concern for the company, which has been studying internal data to figure out why it’s happening, per Bloomberg.

Zoom out: Netflix has been gaining users over the past year, but it’s failed to see a surge in engagement despite several recent major releases (including the finales of Squid Game and Stranger Things). Netflix’s stock is down ~16% so far this year, and ~40% over the past 12 months.