Netflix use has emerged as an accessible venue for quick entertainment. In its 13-year existence, Netflix has been a major player in the entertainment industry and continues to shift its business model to capitalize on what people want to see.
At its advent in 1999, Netflix began a convenient through-the-mail DVD rental business to rival Blockbuster. However, as online videos became increasingly popular, it quickly launched an online streaming service to cater to those customers. This program has been wildly successful and is now much more popular than the through-the-mail service. 56 percent of all Netflix subscribers watch content online or through their video game console. “I only use it online,” says sophomore Stephen Schick, “It has good movies and TV shows all at the click of a button; it’s convenient.”
Netflix shifted its business model this year to include original series. Netflix had previously opposed creating original content. In fact, CEO Reed Hastings said in 2011, “We’re better off letting other people take creative risks [and] get the rewards.” But then they offered David Fincher and Beau Willimon a $100 million budget and a 26-episode commitment to produce their debut original series, House of Cards, which was released Feb. 1.
House of Cards is a political drama about a manipulative congressman played by Kevin Spacey. Unlike traditional TV series, it is not constricted to standard TV episode lengths. “It’s like The Sopranos on steroids,” says sophomore Andros Petrakis, “the way it sort of mirrors how some politics is done and the ‘not-so-clean’ side of leaders in our world.”
House of Cards is reportedly based on viewer demographics and preferences, although Netflix has not released viewer data. Some believe that this gives Netflix unprecedented control over content. Petrakis says, “If people don’t like a certain thing that Netflix is creating and they feel limited, they can just unsubscribe and stop paying.”
Netflix is planning to release more exclusive and original Netflix content including a comedy series called “Orange Is the New Black” and reviving “Arrested Development.”
Netflix maintains a subscriber base that is 29 million strong, but Hulu and Hulu Plus, as well as HBO, Amazon Video, and Wal-Mart also have online presences.
For all of the praise that Netflix gets, subscribers still have various qualms regarding the service. “They don’t have a wide variety of movies and current things that you’d want to watch, so you have to be in the mood for a specific show that they have,” says junior Leah Cooper. Despite having over 100,000 titles in their collection, most customer complaints are centered on lack of quality selection. Petrakis says, “It’d definitely be better if it had a larger selection, but it’s cheap enough that it’s good for the amount of content that it has.”
Netflix also lost 800,000 customers when Hastings announced a separation of the company into Netflix and Qwikster, streaming and through-the-mail services, respectively. This would have forced subscribers to pay two separate bills. As a result of public discontent, Netflix backed out of the deal, but there have been more rumors about Netflix raising the cost of their services. However, in an interview with producer Harvey Weinstein, Chief Content Officer Ted Sarandos said, “We are not contemplating raising the $8-a-month subscription fee for online viewing.”
The $8-a-month price of Netflix and its lack of advertisements are enticing when compared to cable, which can range from $20 to $140.
But while Netflix is beginning to stress a highly tailored approach to content, online video sites like YouTube also draw significant viewership. Illegal pirating is ever-present, but YouTube additionally possesses a vast and diverse collection of videos. Furthermore, YouTube allows direct communication between the viewers and the content creators, and viewers can make note of a video’s reception. In addition, many channels on YouTube now produce exclusive series like the Lizzie Bennet Diaries, a modern adaptation of Jane Austen’s novel Pride and Prejudice.
The company may look to transition from its mail service to streaming-only. And noting the recent release of the Netflix-exclusive series Hemlock Grove, it is clear that Netflix is focusing efforts to improve its streaming services as its mail-only subscriber base continues to decline.
