Netflix Reinvents Cable Bundles, Excludes News Programming

Netflix is revolutionizing the concept of cable bundles but with a notable omission: news content. The streaming giant, which played a pivotal role in dismantling traditional linear television and propelling the streaming era, is now adopting several features reminiscent of old-school entertainment powerhouses.

Netflix has embraced advertisements after years of resistance, now boasting over 40 million subscribers to its ad-supported tier. This shift towards an ad-based model signifies Netflix’s alignment with more conventional cable strategies. The company has also expanded into live comedy, featuring events like the Tom Brady roast and John Mulaney’s “Everybody’s In L.A.” Additionally, Netflix is making significant strides in live sports, despite previously downplaying its interest in this sector.

Recently, Netflix announced a landmark agreement with the NFL to broadcast two games on Christmas Day. This addition enhances its expanding live sports portfolio, which will also include WWE “Raw” starting next year. “Last year, we decided to take a big bet on live — tapping into massive fandoms across comedy, reality TV, sports, and more,” said Bela Bajaria, Netflix’s chief content officer.

Despite these advancements, Netflix has consistently avoided incorporating news into its offerings. There are no live-news broadcasts or news-focused programs like “Vice News Tonight” or “60 Minutes” in its lineup. Discussions with talent agents reveal that Netflix has no intention of venturing into the news industry. “The entertainment platforms are not interested in news,” one talent agent stated anonymously. “Their audiences don’t want it and it can be polarizing. It’s just not worth it for them.”

By steering clear of news, Netflix mirrors the approach of other tech and media titans like Meta, who have disrupted traditional news models but opted not to invest in news production. The rationale behind this decision is multifaceted. Firstly, news content generally attracts less viewership compared to entertainment. Secondly, news has become highly polarizing, and even factually accurate statements, such as affirming the legitimacy of the 2020 presidential election, can alienate significant portions of the audience. This polarization complicates advertising and risks subscriber attrition.

From a business perspective, Netflix’s avoidance of news is logical. Investing in news would mean channeling resources into content that is less popular and more contentious, posing significant risks to the company’s broader business objectives.

However, there is a compelling argument that companies like Netflix have a civic duty to support news and public affairs programming, especially given their role in destabilizing the traditional news business model. Quality journalism is essential for healthy democracies, and the decline of the news industry has severe implications for societal well-being.

Historically, major media corporations have invested in journalism. Warner Bros. Discovery owns CNN, Comcast has NBC News, Disney operates ABC News, and Paramount oversees CBS News. Even during the cable boom, companies supported the creation of C-SPAN, providing continuous governmental coverage. Therefore, it is not far-fetched to consider whether a platform like Netflix should make similar commitments to news programming.

Reconstructing the cable bundle without news is like crafting a meal with steak, potatoes, and ice cream but omitting the vegetables. While vegetables might not be the most enticing part of the meal, they are essential for a balanced diet. Similarly, focusing exclusively on comedy and sports may please Netflix’s audience but does not contribute to the public good. Netflix’s current trajectory, emphasizing entertainment while neglecting news, risks further diminishing traditional television news outlets. As the streaming industry continues to grow, the absence of news from Netflix’s offerings underscores a significant gap in the evolving media ecosystem.

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