The recent era of internet and networking has introduced an increasing craze of online series, movies and shows. This has given the revenue of online tv applications and online channels a boost. Amongst this list, NETFLIX is one of the popular names when it comes to online tv shows. Whether its the nostalgia of f.r.i.e.n.d.s. or modern-day thrills of “Suits’’, it has a collection of all such shows that too just a click away. But this status of Netflix isn’t instant. It’s almost 20 years old that has been carved as well as amended a lot many times within the period.
It all started in 1997 when the current CEO of Netflix, Wilmot Reed Hastings was inclined to pay a late fee to a blockbuster when he forgot to return a movie tape on time. This gave him an idea to start a platform like Netflix where people can avail a subscription on a timely basis and watch as many movies and shows as they want. This company is the kingpin of the VOD industry in the world, carving a benchmark for modern-day entertainment tastes.
The Model
Introducing an online platform where every video ranging from opera to news could be available in return for a monthly subscription was a dicey thing earlier. But this unthinkable plan has become a big success.
Apart from being a pioneer in the entertainment industries, its value proposition has enabled it to carve a niche. The three elements that make it different are-
- Affordable price
- Original content
- Accessibility
It airs more than 20,000 episodes of many shows at an affordable price that too of original quality. The decision of choice of which show has to be aired when on Netflix is mostly based on analysis and algorithms that make a prediction of which shows will have a higher demand amongst the viewers. The analytics working with the company get the insights about the demands of the customers; and, through marketing and developmental strategies, it is able to deliver good services. Netflix has more than 130 million subscribers. The tastes and preferences of these customers help them to decide whether a show is likely to be accepted by customers. For example, if it wants to check the demand and interest of customers for a show named, ‘glow’’ it just needs to check its completion level by different customers to verify whether it attracts the viewers’ interests or not. Not just this, Netflix pays attention to even minute things like-
- When you played, paused or switched a show
- The day date and time you watched a show
- Browsing etc
Thus, the analysis is done very deeply when it comes to show-airing, making shows at Netflix a great success.
Although NETFLIX is the trendsetter and leading company in VOD, it is facing a large competition from the upcoming VODs. In order to maintain its position, it is introducing various changes to its product and working.
It has decided to remove Apple from the payment scheme to avoid the 30% payment in the form of subscription fees.
It has introduced a parental control pin to monitor kids’ content they watch.
Netflix mostly will introduce the shows of their own production rather than procuring a license for shows.
Many other changes are being proposed by its team. Now, only time will tell whether Netflix will be able to maintain its position or not.
By Pratiksha Mishra
(SYBBA, NMIMS)
Image Source: complex.com