Santa Clarita Diet, a rare horror-comedy loved by both critics and fans, became a massive hit in its first season. Starring Drew Barrymore and Timothy Olyphant, the series centered on husband and wife real estate team Joel and Sheila Hammond whose normal, mundane lives change dramatically when Sheila shows symptoms of having become a zombie. The single-camera series premiered on February 3, 2017, quickly garnering positive reviews for its unique premise and performances. Despite its success and acclaim, the series was canceled after three seasons on the streaming giant. The reason why is complicated, as is everything involving the streamer's original series. Unlike traditional television, where ratings determine a show's fate, Netflix's own methods leave passionate fans of eminently rewatchable series like this one scratching their heads.
Netflix's "Cost-Plus" Model and the Algorithm
Netflix's decision to cancel shows is often rooted in a "cost-plus" budget model, prioritizing financial efficiency over critical acclaim or audience passion. The streaming platform is built on a "cost-plus" model. If they want your show, they will cover all of the production costs, as well as offering around 30% extra on top of that to own most of the licensing rights. According to CNBC, the majority of TV networks only cover about 60% to 70% of the production costs, with the production company owning most of the rights. But Netflix's approach means that future revenue opportunities for the site's most successful shows, such as Stranger Things or The Crown, predominantly benefit them.
When a show doesn't attract a sufficiently large audience to justify its production costs, Netflix is quick to pull the plug. It's hardly breaking news that financial reasons are the biggest driver behind the platform's decisions. There isn't, in the words of Theresa May, a magic money tree. Cindy Holland, Netflix's head of original content, stated at an INTV conference in Israel that investment decisions are based on audience turnout. If the audience doesn't show up, they reconsider investing in something that doesn't perform as well as hoped. She added: "Obviously, critical acclaim is important too, but we're really about trying to stretch our investment dollars as far as we can and make good on our investors' money - it's theirs, not ours."
This approach, while financially sound for Netflix, can be frustrating for viewers who become invested in shows that are abruptly canceled. The show's fanbase was understandably angry and wanted answers, and while Netflix very rarely gives anything away about what happens behind the scenes, there are certainly some clues out there as to why this one didn't go the distance. Netflix doesn't release viewing figures unless it's on its own terms - they publicised the numbers for the likes of Sex Education and You because of their overwhelming success - so while we'll never know how many people tuned in to watch Santa Clarita Diet, clearly it wasn't enough to outweigh the production costs.
Contractual Disincentives and the Three-Season Curse
Adding to the financial pressures, Netflix's contracts often include annually-increasing bonuses for cast and crew, making subsequent seasons increasingly expensive. Victor Fresco explained in interviews following Santa Clarita Diet's cancellation that the vast majority of contracts are terminated early because, Netflix’s contracts indicate that if a show gets renewed for a fourth season, the payment for the cast and crew generally gets significant increases. The budgets get bigger, and consequently, the stakes get higher for Netflix, who expect to make a massive return on investment. As Fresco explained to The Guardian, unless a show is a "monster hit" like Stranger Things, it has, at best, a three-year run due to these contractual disincentives. “If you look closely at your deal, you’ll see that there’s a huge disincentive for them to order seasons four and five,” he explained.
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Back in Santa Clarita Diet‘s day, Netflix was infamous for canceling its shows after three seasons. (GLOW and Locke & Key were also victims of this practice.)
The Cliffhanger Ending and Creator Disappointment
The cancellation was particularly painful for fans because Season 3 ended on a cliffhanger. Drew Barrymore's passion project lasted just three seasons before it was taken off the table, despite the fact that the last chapter ended on a cliffhanger. The mystery surrounding Mr Ball Legs, and what was going to happen after Sheila sunk her teeth into Joel's neck - two big questions that will continue to haunt us.
Fresco, along with producer Tracy Katsky Boomer, expressed their disappointment in a statement: "Like our audience, we were all-in on Sheila and Joel. Their relationship, in the face of incredible adversity, was inspiring to write and to watch. Mostly, they were funny, which in a comedy is important."
Fresco clearly had some simmering resentment toward the streamer back in 2019 when this all went down, though he tried to play nice at the time. “Netflix took a chance on this odd show and for that we will always be grateful. They were supportive, ever positive, and appreciative of our work. Until about noon today. Still, they were just one phone call away from being a perfect studio. Not bad. Now, the mask is off.
He also revealed that he deliberately ended the season on a cliffhanger to make it harder for Netflix to cancel the show. “We didn’t want to make it easier for them to cancel us,” Fresco said of the choice to leave the story unresolved.
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The Algorithm and the "Synthetic Nightmare Landscape"
One of the criticisms leveled against Netflix is its reliance on algorithms to determine what content is presented to viewers. To many people, Netflix’s user interface is just flat-out bad at finding what you want, so much so that many people resort to using an obscure system of URL codes to find the categories they want. Unless you are the ideal customer who is switching between all the most watched shows on Netflix and strictly hopping from Bridgerton to Great British Bake-Off to Wednesday, the UI doesn’t tailor well to things that don’t fit the mold. Shows like Santa Clarita Diet were the definition of bursting out of the mold with its odd sense of humor, bloody special effects, and the bizarre overarching lore of the series. It combined a sitcom with a plot involving ancient orders, brain spiders, and an ever-expanding cover-up that brings the Hammond family together closer than they ever expected. Odd, off-kilter shows that the site doesn’t fit to mass appeal just don’t make it far on the front page of the site. They just aren’t offered as often as other programming, and it’s a funny Catch-22 in that way. If the show isn’t served up to viewers by the algorithm, it can’t find an audience. And if it can’t find an audience, the show isn’t served to viewers by the algorithm. Netflix is letting machines, not humans, decide what humans want to watch.
This can create a "synthetic nightmare landscape engineered to give audiences something to like rather than figuring out what they actually do like," as one commentator put it. Shows that don't fit neatly into established categories or appeal to the widest possible audience may struggle to gain visibility and, ultimately, be deemed unworthy of renewal.
The Broader Context: Horror on Netflix and the Rise of Streaming Alternatives
The cancellation of Santa Clarita Diet also highlights a broader trend of horror shows struggling to find a long-term home on Netflix, with the exception of Stranger Things. Podcast turned moody atmospheric sci-fi horror Archive 81, and the French gothic supernatural horror Marianne were killed in their first seasons despite showrunners having big plans for them. The Bill Skarsgård led Hemlock Grove was quashed by its third season, and it eventually was wiped entirely from Netflix. And if you really want to push the definition of horror (I do, always), Warrior Nun died on the vine two seasons in, and that was essentially a fantasy horror show about demon hunters. Of course, these were legitimately less known shows for most audiences; but Chilling Adventures of Sabrina, which was struck down in its second season, wasn’t.
While miniseries like Mike Flanagan’s Midnight Mass and The Fall of the House of Usher are generally safe due to their limited scope, more ambitious, serialized horror stories face an uphill battle.
As Netflix's prices rise and its content library becomes increasingly homogenized, viewers are turning to alternative streaming platforms like Showtime, AMC, and Shudder, which offer a more curated selection of horror and genre programming.
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The Possibility of Revival
Despite the cancellation, there is a possibility for a revival if the viewership makes it seem worthwhile, as Netflix has revived shows in the past based on audience demand. Don't expect to see it on another network anytime soon, either. There is usually a clause in the original deal that stops cancelled Netflix shows from airing elsewhere for a "significant period of time, said to be two to three years", according to Deadline. Some sources, however, have suggested that it could be as long as five to seven years, or possibly more. Sheila and Joel's story still has a lot of (undead) life left in it, but don't expect developments anytime soon.
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