Netflix is currently DVD rental, and video streaming via Wi-Fi, company. Anyone has access to it as long as you have a television, computer or anything with the Internet like a smart phone or tablet. Viewers have the option of watching a variety of television shows, as well as movies. The current amount of subscribers and customers for Netflix today is 47 million individuals. The first month of Netflix is free, and after that the monthly fee varies from $7.99 per month to $11.99 per month depending on the amount of screens the account is using. The options of shows and movies changes throughout the year depending on the amount of views it has. Some of the shows “Netflix Originals” which means they were only on Netflix, and not on television. Netflix continued to create shows on their own in accordance to what their audiences like. Netflix is unique and has a variety of genres that appeal to almost all audiences. The majority of the shows is popular and will filter through the genre of “Trending Now”. Netflix has grown from a small DVD rental company to a huge worldwide video network which brings the overall topic of conversation; why is Netflix so successful?
Netflix began in 1997 by Wilmot Reed Hastings who came up with the idea because he returned a movie late that he rented from Blockbuster and they charged him with a late fee. So he decided to create his own DVD rental company which allowed people to rent movies for a fee, which covered them being delivered to the costumer’s home and when they were done watching the DVD they would put it back in their mailbox and it would be picked up so the customer would be satisfied and would not have to go through the hassle of being fined for returning their DVD’s late. As Netflix continues to grow streaming amongst customers is growing, and domestic DVD rentals are decreasing and this is due to the accessibility of technology, and that computers and television are developing and improving, therefore less and less people are using the domestic DVD side of Netflix (Radak).
Beginning in 2012, $2.1 million came in through domestic streamers, while $1.1 million came in through domestic DVD rentals. In 2014, $3.4 million came in through domestic streaming while $750,000 came in through domestic DVD rentals. Statistics show throughout the years how one market is slowly expanding while the other is slowly decreasing. Although, on section of the income is decreasing, streaming is increasing rapidly and worldwide. The three factors that go into the success of Netflix is affordable price, accessibility and original content. For example, when Netflix added an original series called Fuller House 21 million views came from it. Netflix began creating their own shows in 2013, and after that the network skyrocketed even more. In 2011 the stock market crashed which caused a variety of problems for the CEO’s of Netflix as well as those for other streaming companies, but Netflix survived the stock market crash through long term planning. Professor Michael Hammock , Florida State University economics professor commented on the topic and said “Having a popular product with inelastic demand is a good situation for any company. Combined with the ubiquity of high-speed internet access, it probably helped Netflix weather the recession. The combination of cable internet and DSL, with Netflix, Hulu, and Youtube, has led to a growing number of cord-cutters, who don’t have cable television or land-line phones. I would expect that trend to continue.”
Competitors of Netflix wanted costumers as immediately as possible while Netflix slowly reeled their costumer’s back in which in the long run paid off. As tablets and new technology were going on the market and individuals were going crazy purchasing these items, Netflix had to think of a way to expand their own market and to accommodate to as many people as possible so they developed an app, which allows costumers to stream videos of almost any device. Also, during this time DVD player sales began to decrease which showed the CEO’s of Netflix that it was time to cut back on DVD rentals and to move more into expansion of viewing capability. CEO Wilmot Reed Hastings made amazing decisions when the market crashed and Netflix was not as supported as it should have been. He came up with smart plans to bring back his company when most streaming companies could not.
Of all the individuals that view Netflix, the largest age group is college students. Nine out of ten college students are Netflix customers(Nijiri). Majority of students binge watch shows, which means they watch three of more episodes in a row. The top three schools in the United States that watched the most amount of Netflix is Rutgers University, University of Minnesota, and Arizona State University. When an episode on Netflix finishes, a box pops up with a backwards timer that shows how long until the next episode will begin to play. This action that Netflix has programmed gives the viewer the opportunity to mindlessly want to watch the next episode due to cliffhangers and shows and the easy access to the next episode. Many college students use Netflix as a form of relaxation when needing a study break or a night in to rest. In addition to Netflix being a form of relaxation for some students, for other college students and some teenagers Netflix is used to finesse one’s way into a hook up with someone, in other words “Netflix and chill”. This is a trend that has raised the viewers on Netflix purely because couples are putting Netflix on for however many hours and they use this as an excuse to fool around. “Netflix and chill” is a way for someone to invite another person over to hook up, and it works because the one individual knows what that means, but also thinks to themselves “we’re just watching a movie, no big deal”, but this means intercourse or whatever someone’s definition of hooking up is. This trend has spiraled out of control on social media through Twitter, Facebook, and Instagram with an array of meme’s making fun of the action of “Netflix and chill” or instances that can happen during it. The trend slowly began in 2007, and became viral in 2014. This trend may not have been a self-advertising idea from Netflix but in the end it definitely benefitted the company. The idea of this trend may not be the most flattering topic to be associated with Netflix but it brought a lot of commission and views from it. Any benefit is a positive benefit.
In addition to this trend, Netflix decided to continue to expand their market and move Netflix to over 190 countries with over seventeen language options. This helped the company in many ways. It helped because it gets global viewing and this is a customer branch that is home based, but also when customers travel they can still watch Netflix on the go, with their smart phone, computer, tablet or once they are in the next country can watch it there. This may have been one of Netflix’s smartest business decisions because they expanded their network so largely and they do not limit their customer’s or the world. Adding different languages also benefitted them a lot because some people may live in one place but speak and understand a different language so having the option of choosing almost any language gives costumers a more satisfying experience.
The CEO’s of Netflix continue coming up with smart ways to improve their brand, and product and still please their costumer's. Netflix changes, and cycles shows and movies throughout the year based off analytics. The technicians of Netflix can see everything an individual is doing while logged into the website, for example they can see how many shows in a row someone watched before logging off. Another example would be how often individuals watch a certain show and if they finish all the seasons. Also, how often people log on and off their account with the time remaining of certain films or shows. These analytics help the network figure out which shows and movies the viewers enjoy the most and the rating they give them. Although some viewers are upset when shows and movies are removed, many realize they did not watch them as often as they thought and in result were removed. The technicians also look at how many people that began a series or movie actually finished it. In addition they look at how many people watched one movie or one episode and then logged off after. Many times when viewers only watch one video then log off are more likely to revoke their subscription. There are many counterclaims to the success of Netflix, which include other video-streaming network users like Hulu, and AdmiteMe, who personally like the shows, and movies the other networks have that Netflix does not have. Netflix does add and remove shows while other streamers do not. Extremely popular shows like The Walking Dead and Game of Thrones are not on Netflix but are on others. Both shows are huge hits but Netflix may hurt them and lose certain costumers due to the limited amount of options. Also, many college students get caught up in Netflix sometimes and don’t do as well in school or sleep as well that night. Netflix was not a huge success at first; this network has been in the making for over 15 years and is just recently making an explosion in sales and success. Also, some countries like China, and Syria will never have Netflix due to American laws that do not allow American businesses in those countries.
Netflix may be a DVD rental, and video streaming company but it does tie into the real world. Television shows and movies created by Netflix go over real world issues, and events that took place, for example, the show Narcos is an overview of the drug embezzling trade through out Colombia with Pablo Escobar. Netflix is also a wide spread business which can be reached throughout the world, which connects people and allows individuals to show interest in one another solely based off the shows and movies they watch. High success is due to Netflix’s cheap and easy to accessibility. This site and the creators of it make huge profits and accommodate all ages, and types of people. The CEO’s created an amazing business from beginning with DVD rentals to having a worldwide video streaming website, and app. The statistics and customer satisfaction levels prove exactly why Netflix is successful. As a network and company, they have adapted throughout their development to higher standards, and to serve their customer’s. Film and show allow an audience member to relax, and to enjoy some time to themselves or with friends while watching a video. This is how Netflix connects and satisfies people. The company may have taken 19 years to develop to what it is today but the results of their success have been incredible and beneficial.
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Work cited
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Michael Hammock, Florida State University Professor in Economics
