Milly Gaines
The Netflix original series Santa Clarita Diet was cancelled in 2019, after three seasons. The show, starring Drew Barrymore and Timothy Olyphant, followed a married couple who are real estate agents in Santa Clarita, California. Their lives are upended when Barrymore's character, Sheila, becomes a zombie and starts craving human flesh. The show's creator, Victor Fresco, was blindsided by the cancellation, only learning about it when he found out that the sets were being taken down while he was editing season three. Fans were left disappointed, as the show ended on a cliffhanger, with many questions left unanswered.
| Characteristics | Values |
|---|---|
| Date of cancellation | 26 April 2019 |
| Number of seasons | 3 |
| Reason for cancellation | Netflix's "cost-plus" budget model, not enough viewers to outweigh production costs |
| Fan reaction | Anger, disappointment |
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What You'll Learn
Netflix's cost-plus budget model
Netflix's decision to cancel Santa Clarita Diet was attributed by Deadline to its "'cost-plus' budget model." This model has been described as a key factor in the show's cancellation, leaving fans disappointed and yearning for closure.
Netflix's "cost-plus" budget model has significant implications for the company's approach to funding and owning original series. Under this model, Netflix offers to pay for a show's production costs upfront, plus a premium of 30% or more on top of the total costs. This strategy sets Netflix apart from traditional TV networks, making it challenging for competitors to keep up. The model provides Netflix with more ownership rights and changes how shows are typically licensed, resulting in the company seizing a larger share of the revenue from successful shows.
The "cost-plus" model has its advantages and disadvantages for creators. On the one hand, it often brings creators closer to their full budget, allowing them more freedom and less upfront risk in creating their envisioned show. Netflix's reputation for being hands-off due to fewer advertiser demands is also appealing to creators. However, the downside is that creators may sign away most of their future revenue opportunities, potentially forgoing tens of millions of dollars that would go to Netflix instead.
While Netflix's model can be lucrative for the company, it has sparked mixed reactions from customers. Some fans of cancelled shows like Santa Clarita Diet express frustration over Netflix's decision-making, feeling that their investments as customers are not being valued. On the other hand, Netflix's ability to fund original programming and offer a variety of subscription plans continues to attract and retain a significant customer base.
Netflix's "cost-plus" budget model has undoubtedly influenced its content strategy and competitive position in the market. The model has allowed Netflix to acquire ownership rights and attract creators with attractive upfront deals. However, it has also led to fan disappointment when shows are cancelled due to budget considerations, as in the case of Santa Clarita Diet.
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Lack of promotion
Santa Clarita Diet, a Netflix Original zombie comedy, was cancelled in 2019, leaving fans disappointed and frustrated. The show had a loyal fan base and received positive reviews from critics, with Rotten Tomatoes giving it an impressive 100% approval rating for its third season. So, why did Netflix decide to pull the plug? While there may be a few factors at play, one reason could be a lack of promotion.
Netflix is known for its original content, but it also has a reputation for cancelling shows abruptly, often leaving fans disappointed and frustrated. In the case of Santa Clarita Diet, some fans felt that the show did not receive enough promotion or advertising from Netflix. One fan commented that the only place they saw the show being advertised was on the Netflix "screen saver", and that they had never seen any promotion for the show beyond that. This lack of promotion may have contributed to the show's cancellation, as it could have impacted its viewership and popularity.
It is important for streaming platforms like Netflix to promote their original content to attract and retain subscribers. However, in the case of Santa Clarita Diet, it seems that Netflix may have dropped the ball. Without sufficient marketing and promotion, it can be challenging for a show to build and maintain a large enough audience to justify its continuation. This is especially true for a show like Santa Clarita Diet, which had a unique premise and may have needed more explanation and exposure to attract new viewers.
While Netflix does not release viewing figures unless it is on its own terms, it is likely that the cancellation of Santa Clarita Diet was due, at least in part, to low viewership. Netflix's head of original content, Cindy Holland, has stated that the decision to continue investing in a show depends on the audience that shows up. If the audience is not large enough, Netflix may choose to cut their losses and invest in other shows that have a broader appeal. In the case of Santa Clarita Diet, it seems that the show may not have brought in the numbers that Netflix was hoping for, despite its critical acclaim and loyal following.
In addition to a lack of promotion, another factor that may have contributed to the show's cancellation was its cost. Netflix operates on a cost-plus budget model, where they pay for a show's production costs upfront, plus a premium of 30% or more. This model can be risky, as it requires a significant investment upfront, and if a show does not perform well, Netflix may be less likely to continue investing in it. Santa Clarita Diet, with its zombie theme and special effects, may have been a costly show to produce, and without strong viewership to justify the expense, Netflix may have decided to cut their losses.
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Netflix's original content strategy
The company's original content strategy has been so successful that it has propelled global revenues to $31.6 billion and garnered 238 million subscribers worldwide. This success, however, has not stopped Netflix from cancelling some of its original shows, such as Santa Clarita Diet, which was cancelled after season 3 despite ending on a cliffhanger. The cancellation was attributed to Netflix's "cost-plus" budget model, where the company pays for a show's production costs upfront, plus a premium of 30% or more of the total costs.
While Netflix has built its success on original content, it has recently shifted its focus to third-party content licensing. This strategy is driven by the harsh financial realities of the industry, as major media competitors opt to retain their libraries for proprietary streaming platforms. With nearly $7 billion in free cash flow, Netflix is exploring fresh revenue-generating avenues, including licensing its content to competitors for the first time.
Despite this shift, Netflix recognises the importance of its original content and is exploring ways to monetise it further. The company is considering syndicating its older original series to broadcast networks and licensing original series that have already concluded, such as concluding series like Santa Clarita Diet. By prioritising its streaming service and exploring strategic licensing opportunities, Netflix aims to boost revenues, prolong content value, and continue delivering compelling original content to its subscribers.
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Creator Victor Fresco's decision to end on a cliffhanger
Santa Clarita Diet, a black comedy about eating people, was cancelled by Netflix in 2019, leaving fans heartbroken and angry. The show ended on a cliffhanger, with the fate of Joel, who was bitten by his zombie wife Sheila, left unknown.
Series creator Victor Fresco has detailed his decision to end the show in this way. He explained that he had a feeling that Netflix would cancel the series and didn't want to make that decision easy for them:
> "We didn't want to make it easier for them to cancel us. We thought, 'Why are we doing their work for them?'"
Fresco also discussed being "blindsided" by the cancellation, recalling how he was in the process of editing season 3 when he learned that the sets were being dismantled. He knew then that the show was "definitively not coming back".
Fresco had plans for a fourth season, which would have explored Joel's new life as a zombie and the impact on his relationship with Sheila, now that they were "in the same boat". He also wanted to delve into the relationship between the Hammonds' daughter Abby and their neighbour, Eric.
The show's cancellation has been attributed to Netflix's "cost-plus" budget model, with the streaming service paying for a show's production costs upfront, plus a premium of 30% or more. Netflix's head of original content, Cindy Holland, has stated that the decision to cut shows often comes down to whether they are getting enough bang for their buck. Despite critical acclaim and a loyal following, Santa Clarita Diet was not considered to be a big enough hit to justify a renewal and the pay increases that would follow.
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Inability to justify pay increases for cast and crew
Netflix's decision to cancel Santa Clarita Diet can be attributed to various factors, one of which was the challenge of justifying pay increases for the cast and crew.
The show's creator, Victor Fresco, acknowledged the role of financial considerations in the cancellation, suggesting that the series' popularity was not sufficient to warrant a renewal and the associated pay raises. This dynamic is not uncommon in the streaming industry, where even moderately successful shows may struggle to secure extended runs compared to more prominent hits.
Netflix operates with a cost-plus budget model, where they cover production costs upfront and also pay a premium of 30% or more of the total expenses. This model incentivizes Netflix to prioritize investing in shows that will attract a large audience to justify the expenses.
While Santa Clarita Diet had a loyal following and positive critical acclaim, it appears that Netflix determined that the show's performance did not warrant continued investment, especially considering the potential pay increases for another season. This decision-making process is influenced by Netflix's need to balance their investments with their financial obligations to shareholders, as publicly traded companies are legally required to prioritize shareholder interests.
The cancellation of Santa Clarita Diet left fans disappointed and seeking closure, as the series ended on a cliffhanger with unresolved storylines. Despite the show's popularity, Netflix made the business decision to allocate their resources towards other ventures, reflecting the challenging landscape of the streaming industry, where even moderately successful shows may struggle to secure extended runs.
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Frequently asked questions
Netflix's cancellation of Santa Clarita Diet was attributed to the company's "cost-plus" budget model. Netflix pays for a show's production costs upfront, plus a premium of 30% or more of the total costs. Netflix's head of original content, Cindy Holland, said that the decision to cancel a show depends on whether they are getting enough bang for their buck.
Fans of the show were disappointed and angry about the cancellation, especially since the third season ended on a cliffhanger. Some fans even cancelled their Netflix subscription. The show's creator, Victor Fresco, also expressed his disappointment, saying that he felt blindsided by the cancellation.
In an interview, Fresco revealed that the fourth season would have explored Joel's new life as a zombie and its effects on his relationship with Sheila. He also wanted to explore the relationship between the Hammonds' daughter Abby and their neighbour Eric.
