Netflix’s Push for The Crown a Sign of Financial Worries?

Netflix has continued to heavily promote its flagship series, The Crown, raising questions about the streaming giant’s financial health. Traditionally known for a strategy that relied more on word of mouth and less on aggressive marketing, Netflix’s notable shift towards sustained advertising campaigns may be signaling deeper issues within the company.  Even close to a year after the show wrapped filming, Netflix is still aggressively investing in advertising campaigns for the British Royal family oriented show in digital media but also in outdoor placements such as billboards. With The Crown being one of Netflix’s most expensive productions, the ongoing promotional efforts are drawing scrutiny and speculation from both industry insiders and the viewing public.

The Crown Production Costs

“The Crown,” Netflix’s lavish royal docudrama, has ascended to unprecedented financial heights with its latest series becoming the most expensive yet, totaling $143.3 million. This surge in expenditure brings the total investment by Sony’s Left Bank Pictures (LBP) to a staggering $504 million since the show’s debut in 2016. The series, envisioned by British screenwriter Peter Morgan, traces its origins to the 2007 Oscar-winning film “The Queen” and has captivated over 73 million households globally, rejuvenating interest in the British monarchy with its compelling narratives and acclaimed cast.

The fifth season, released in November, navigates the 1990s of the royal family, featuring an entirely new ensemble including Imelda Staunton and Dominic West. This season’s timing coincided with significant royal events such as the Queen’s death and the release of Prince Harry’s controversial memoir “Spare,” boosting viewership to over 107.4 million hours in just five days and topping Netflix charts across 37 countries.

Costing around $14.4 million per episode, the series’ financial demands are partly due to its meticulous production standards, including the construction of a life-size Buckingham Palace section and rigorous attention to period details. Despite the high costs, LBP has managed to mitigate financial strain through $98.8 million in tax credits, bringing the net production cost down to $405.2 million.

While the financial commitment to “The Crown” has been immense, the show’s success has established LBP as a formidable player in the media landscape, albeit not without controversy over its historical accuracy. The substantial investment raises questions about the sustainability of such high expenditures and whether the dramatic portrayal of the monarchy was worth the financial gamble, considering both the viewership it attracted and the discussions it sparked.

Why Is Netflix Still Advertising The Crown ?

The advertising blitz surrounding The Crown is unlike anything seen in the show’s earlier seasons. From billboards in major cities to targeted online campaigns, Netflix appears to be pulling out all the stops to keep the series in the public eye. This aggressive marketing strategy could be interpreted as a sign that Netflix is feeling the heat from increased competition. With more streaming services entering the market and vying for viewer attention, Netflix may be leveraging its established hits to ensure subscriber retention.

Additional the company is focusing on prolonging the life of the show now on social media, with dedicated social media profiles for The Crown, where for example the heavily sponsored Instagram page seems to now be the spot for uncut and behind the scenes material. In addition the show is promoting its 18 Emmy nomination count, placing the show as an awarded success in front of the viewer. The ongoing advertising may be closely connected to the award ceremonies PR, keeping the show relevant in front of the viewer. That said, the show is also entering the phase of a heavy syndication. Where unlike massive Apple+ TV Shows, thanks to it’s collaboration on the production of the Crown with Sony, the show is also present on TV channels outside of the Netflix platform.

Look Into Netflix’s Financial Health

At the heart of these efforts could be a larger narrative about Netflix’s financial health. Despite being a pioneer in the streaming industry, the company has faced growing scrutiny over its spending habits. Investors and analysts have often questioned the sustainability of Netflix’s content budget, which runs into billions annually. By maintaining a high profile for The Crown, Netflix might be attempting to showcase its commitment to premium content, thereby reassuring stakeholders and investors of its ability to dominate the industry.

Alternatively, this strategy could indicate that Netflix is experiencing pressure to maximize returns on its existing content. By continually promoting The Crown, Netflix ensures that the series attracts new viewers and retains existing ones, thereby driving up viewership numbers and justifying its hefty price tag. This move could be a precautionary measure to safeguard against subscriber churn, especially as consumers become more selective about which streaming services to keep in a crowded marketplace.

The Crown A Disaster of A Gift That Keeps on Giving?

Netflix’s ongoing promotion of The Crown could be seen as both a strength and a potential vulnerability. On one hand, it highlights Netflix’s ability to create and maintain cultural touchstones that resonate with audiences worldwide. On the other hand, the need to continuously market a flagship series might suggest underlying concerns about the company’s growth and profitability. Furthermore, emphasizing the need to further capitalize, or even cover the cost of what seems to be the most expensive TV show in the history of TV (read streaming). As Netflix navigates this complex landscape, its approach to advertising could offer insights into its broader business strategies and long-term vision. Furthermore, this may be the first and the last Netflix show with such a budget even taken into consideration. Which end of the day is a true red flag for the rest of the film and TV industry, where numerous sources are reporting massive shut down of production in all scopes of the industry.

Finally, while Netflix’s focus on promoting The Crown may not definitively indicate financial trouble, it certainly raises questions about the company’s current priorities and strategies. As the streaming wars continue to intensify, Netflix’s decisions will be closely watched by industry observers and subscribers alike, all looking for clues about the future direction of the streaming as a business.