Netflix have confirmed that they will not be proceeding with a third season of Marvel drama Iron Fist.
Netflix have six drama series set in the Marvel Cinematic Universe - Daredevil, Jessica Jones, Luke Cage, Iron Fist, The Defenders and The Punisher - and this is the first time they have cancelled one of the shows in progress. Iron Fist's first season aired to lukewarm reviews but got a very impressive number of streams. The second season has received much stronger reviews, but Netflix have not released any viewing figures for it.
Netflix and Disney/Marvel's deal allows for Netflix to continue airing five original drama series (with occasional Defenders team-ups), with The Punisher commissioned later as a separate spin-off of Daredevil. The Hollywood Reporter suggests that Netflix and Disney were unable to extend this deal indefinitely so decided to revert to the five-show original order. With The Punisher performing much better than Iron Fist, it was decided to continue with that show. In effect, The Punisher may have killed Iron Fist.
It is possible that this may also mark the start of the winding-up of the Netflix arm of the MCU: in late 2019 Disney launch their own streaming service and it is unlikely that they will want to continue making shows (the Netflix MCU shows are produced directly by Disney for Netflix, via ABC) for a rival service. Although it hasn't been formally cancelled, Netflix have also not yet formally greenlit a third season of Luke Cage either, although this apparently is now more likely.
A third season of Daredevil drops this coming Friday and a third season of Jessica Jones and a second of The Punisher are already in the can for release in early 2019. Some fans have called called for Luke Cage and Iron Fist to be replaced by new shows based on the Heroes for Hire (teaming up Luke Cage and Iron Fist) and Daughters of the Dragon (teaming up Misty Knight and Colleen Wing) comics instead, but it sounds like the Marvel/Netflix deal will not allow this to formally happen. An informal team-up in a future season of one of the other MCU shows sounds more likely.