Netflix & No-Chill…
Everyone knows and watches Netflix, but not everyone knows about its past or if it even has a future…
Netflix, now an internationally successful streaming service, started out in 1997 as a DVD rental company based out of California. The concept of renting DVDs by mail was widely unheard of back in the days of Blockbuster. Consumers were used to going into a video store, picking out a tape or dvd to rent, going home and watching it, then returning it to the store whenever it was due back.
Netflix was a major industry disrupter, while brick and mortar video rental stores were all the rage, Netflix instead focused its company on internet retailing, offering to mail DVDs directly to customers homes via the USPS.
In order to make up for their inevitable shipping delays, Netflix dropped late fees and eventually adjusted their pricing system to allow for a monthly subscription.
At times when the company was threatened, Netflix was able to reconvene and come up with the best suiting alternatives. Pushing older, lesser-known movies instead of the latest hits, allowed Netflix to save money and become the hub for independent films.
In 2007, CEO Reed Hastings unveiled Netflix’s entrance into the online video market. However, this wasn’t an easy decision for the company to make considering the appeal to remain a DVD rental service, coupled with the fear of not being able to sustain its position in the media industry.
In 2014, Netflix began creating original shows and movies. By 2018, Netflix received 112 Emmy nominations for their original work, beating content-rival HBO. For the first time in 17 years, HBO was not first for most nominations. In 2020, Netflix broke the record for the most Emmy nominations of any network, studio, or streaming platform ever, with 160.
Challenges Netflix faces:
Netflix produces its own content, which is part of the appeal that draws consumers in. However, original productions are really expensive to make compared to licensing existing content. Although Netflix does both, it competes with companies that have large budgets for original stuff. And when a consumer doesn’t want to subscribe to the plethora of platforms out there, they will pick the one with the best original content.
How Netflix Compares to the Competition:
Netflix has gained several competitors over the years, and they all have very deep pockets. Industry giants like Amazon, Apple, Disney, and AT&T (owner of Warner Media and 21st Century Fox’s movie library and production facilities).
Although these competitors have a bigger budget than Netflix, they’re newer to the game. Netflix has the largest database on consumer video preferences that has been built over 20 years. So for now, Netflix has the advantage of being able to make the most accurate recommendations to subscribers.
In pop-culture, Netflix has been able to maintain relevance amongst Millennials and Gen Zers who have coined the term “Netflix & Chill” as a way to ask someone to hangout and possibly hookup (with Netflix playing in the background).
Ice-cream giant Ben & Jerry’s took advantage of this phenomenon and in 2020 created a new flavor of ice-cream in partnership with Netflix called “Netflix & Chilll’d”, that even comes in Non-Dairy and is sold in over 20 different countries.
Is Netflix’s Future Secured?
Considering it curated the industry, Netflix will always be known. Netflix has international popularity and pop-culture appeal.
Sometimes when I talk to my friends I’ll say I’m “watching Netflix” even if I’m actually watching HBO Max or something else, it just comes off the tongue naturally. Plus, I’m sure I’m not the only one who says “Netflix” as a blanket term for watching a streaming platform.
Nevertheless, there was a time when Blockbuster was so popular that no one could imagine it not having a secure future. So who’s to say this won’t prove true for Netflix.
