The way that people are watching television in my generation is far different from how television was consumed just ten years ago. Based on personal experience, there’s an interesting find that I have discovered about the way the people around me talk about Netflix; the streaming service that has been providing media to customers around the globe for just under ten years. When someone says that they have been using Netflix, they rarely say “I watched this specific show,” but instead say, “I watched Netflix”. Netflix has become one of the biggest tools of consumption of video in the 21st century. Just a decade ago, the idea of an online streaming service probably would have been unheard of due to the technology and storage not being as advanced
The service didn’t offer a streaming library of movies and TV shows that we know it as today but instead online movie rentals, where customers would order a movie online for it to be mailed to their home. Just two years later, the company offered a subscription service, which would put them in the path for a future streaming site that was launched almost ten years after Netflix was created. At this time in 2007, Netflix already had a plethora of customers around the United States who clearly embraced the new streaming service. The international company now has multiple Emmy’s for their original content and over 50 million customers
At a Paleyfest panel in 2014 she explained how the trend of “binge-watching” influences her writing. “We don’t have to cover every character in every episode,” she said. Kohan listens to her audience and the way Netflix consumers binge-watch a lot of the content. She decides to go deeper into her characters and leave certain characters out of some episodes. “The audience would see them in an hour” (Kohan). Streaming sites like Netflix are changing the definition of television. Because of this, TV producers are getting more creative and viewers are getting smarter. Many experts have called the past few years the second golden age of television with numerous shows taking risks and becoming, believe it or not, a new standard of learning. Over the past few years, Netflix has revolutionized the way writers are writing television and how audiences watch and absorb television which brings me to my next topic: binge
One of the mediums by which this cultural shift has continually happened is through television. Not only does culture affect choices made by those in the television industry, but popular series and talk shows, whether intentionally or not, name what culturally acceptable regarding many social issues. Television, TV for short, is referring to the telecommunication medium by which ideas are transmitted into moving pictures. The Television industry will be defined as the group of brains behind the creating process of a television show of any genre. Genres each have their own purpose and effect on the audience; talk shows mean to engage, while sitcoms, drams, mini-series, and television comedies are meant to entertain. Regardless of its intentions, each genre of TV has an affect on the people who internalize what they are watching.
A critical SWOT analysis of Netflix’s social media techniques clearly shows they are ahead of the game and not backing down from rising competitors like YouTube which is gaining viewers by increasing the amount of online content.
The video rental industry began with brick and mortar store that rented VSH tape. Enhanced internet commerce and the advent of the DVD provided a opportunity for a new avenue for securing movie rentals. In 1998 Netflix headquartered in Los Gatos California began operations as a regional online movie rental company. While the firm demonstrated that a market for online rentals existed, it was not financially successfully. Netflix lost over $11 million in 1998 and as a result significantly changed the business model in 2000. The new strategy included focusing on becoming a nationally based subscription model and focusing on enhancing the subscribers experience on their website. The change in strategic focus has allowed Netflix to grow into the largest online entertainment subscriptions service in the United States with over 6.3 million subscribers (Netflix).
Moreover, Netflix is seriously struggling to maintain its DVD membership model alive. Subscription numbers keep declining. It dropped from around 14 million in 2011 to less than 6 million in 2015. Lastly, Netflix demands exclusivity of the shows that they land the rights to stream making it difficult to acquire rights of many TV shows and movies. Amazon Prime Amazon Prime is the only provider that offers a 1 month trial period which gives customers the chance to properly experience it before becoming a member.
Television has come a long way since it was first introduced. Originally, it was thought that the masses that watch television enjoyed the more simple shows that would tell you exactly what was going on from start to finish. In Steven Johnson’s article, “Watching TV Makes You Smarter”, Johnson argues that this is actually not the case. In fact, Johnson argues that much more people enjoy shows that involve multi threading, or multiple plots that are all connected.
Charging a monthly fee for unlimited rentals, Netflix eliminates due dates and late fees, as well as eliminating the long lines of a brick-and-mortar store. ? Netflix uses their great customer service to keep customers happy, which keeps customers from canceling their subscription to the service. If there is a problem that arises during the rental process, such as a damaged DVD, or lost DVD during the shipping process, Netflix addresses the problem immediately, and never charges the customer for the problem. ? Netflix was the first company to offer DVD rentals over the internet. By leading the industry in innovation, selection and delivery time, Netflix enjoys the benefits of a strong brand image, and strong relationships with DVD suppliers and manufacturers.... ...
People have been participating in it for decades and it still has yet to solely create any extreme negative consequences. Binge watching allows people to escape from their world and transport themselves into another. It relieves us of stress, and provides us with aspirations, inspiration, and instant gratification. The practice offers insight into the importance of television as means of communication, and the development of enhanced social connections. Binge viewing can also connect communities, generations, and society as a whole; it doesn’t cause the fragmentation of cultural unification, as some believe. Rather, binge watching unites us all in this newly digitized world and it should be seen as a culturally progressive tool; a tool, which we can use to continue to shape the future of our cultural identity in this space and time today. “Now to just move away from the negative connotations of 'binge ' - maybe 'celebration watching ' would be better” (Giuffre
Binge watching has become the new normal in the current generation. Chris Smith discuss how different type of people binge watch and how common it is for a teenager. “However, there are plenty of advocates
After receiving a ridiculously high fee for returning a movie late, Reed Hastings said that there had to be a better way to rent and watch movies and TV shows from the comfort of their own homes. Hence, in 1997 Reed Hastings and Marc Randolph, a software executive, co-found what is known today as Netflix, “the world’s leading internet subscription service for enjoying movies and TV shows,” (Netflix, Facts). The purpose of this paper is to the process of exchange between Netflix and their customers, as well as Netflix’s approach to relationship marketing and how this marketing technique has helped Netflix leave their competitors in the dust when it comes to customer satisfaction.
Streaming video content over the internet continues to grow in popularity with consumers for a variety of reasons, including the widespread availability of high speed internet, attractive video content, easy to use video streaming devices and the rising cost of cable television service. Some consumers use streaming video to enhance or supplement the typical offerings available from their local cable provider. Others take a more extreme approach and use streaming video as a means to eliminate the need for a cable television subscription altogether. Presently consumers cancelling their cable TV subscriptions are still considered a minority of all subscribers; nevertheless their steadily increasing numbers have earned the moniker of “cord cutters.” Those looking to ditch cable TV can also find a growing number of online resources that will ease their transition to cheaper online television viewing.
Episode one in the first season of the X-Files ends with a room full of mysteries urging the viewers to continue onward to the next episode; and with the next episode the same urge arises. There are nine seasons and two hundred and two episodes of the X-Files all consisting of appetizing mysteries; and for only $7.99/month all those episodes are available on Netflix. This subscription to Netflix not only unlocks the hunger for the X-Files, but also the hunger for hundreds of TV shows and hundreds of movies. With Netflix as a tool boredom becomes an easy fix; however Netflix fixes boredom so well that it causes “binge watching”. In other words, the viewer is suctioned to the screen for hours with no view of their priorities.
When Reed Hastings discovered an overdue movie in his closet and paid the subsequent exorbitant fees associated with it, he realized that something needed to change. Having already started and sold a software business, this entrepreneur contemplated about alternate video service ideas that would better satisfy customers. Netflix entered the market in 1997 when the market leader was rental giant Blockbuster Inc. At the time, Blockbuster attempted to grow by opening new locations in order to expand geographic coverage and to increase penetration and share in existing markets. Their shelves mainly carried hit movies and placed importance on the newest releases. They were hesitant to carry many older or independent films due to inconsistent demand.
Reed Hastings, co-founder of Netflix headquartered in Los Gatos, CA, began the company’s operations in 1997 after receiving an enormous late charge from a movie rental he returned long overdue. However, Hastings had the desire to be different than traditional movie outlets; whereas, customers had to drive to the location, pay a certain amount for each movie they rented, and were given a deadline in which to return the movie. Instead of using a method established by other video markets “to attract customers to a retail location, Netflix offered home delivery of DVDs through the mail” which eventually led to a booming business towards streaming forms of entertainment (Shih, Kaufman, & Spinola, 2009, p. 3). Today, Netflix exists along with several competitors; however, offers the most streaming content available for viewing, and continues to grow its subscriber base both domestically and globally. Although, direct and indirect competitors, acquisition costs, and several barriers present a financial threat for Netflix, the company has managed to grow with the acclamation of partnerships, expand to international territories, and vastly increase its price in shares of stock.
The idea inspired Reed Hastings and Marc Randolph, and then they founded Netflix in Scotts Valley, California in 1997 (Netflix, 2014). The company comes into play by developing a subscription-based streaming platform for movies and television shows. Unlike the traditional movie rental businesses such as Blockbuster and Redbox, Netflix’s innovation offers service via Internet, and it does not have any physical stores but instead delivers DVDs through postal mail in the U.S. Since then, Netflix has become the world’s leading internet television network with constant growth of customers to over 48 millions members in more than 40 countries in the North America, Europe, and the Latin America (Netflix, 2014). In this analysis, the main focus is examining the current market environment for Netflix. It identifies the type of market structure that Netflix is currently competing. The analysis also expands on the competitions, product differentiation, pricing strategy, and measuring the level of easy entry-and-exit.
There is strong competition with other companies that offer video streaming at no extra charge. Additionally, Netflix and its competitors are attempting to enter the digital world. Digitally offering television shows is an area of competition that has previously been controlled by