Netflix has managed to find its way into the home of over 160 million people, which is furthermore spread across 190 countries. Netflix was founded in 1997 by Reed Hastings and Marc Randolph in Scotts Valley California. Remarkable feet, this company has achieved over the years. Many have argued that the company has reinvented the way the entertainment industry was, and I agree. Before you say anything, here are a couple of reasons why I feel they are correct.
Innovation
When Netflix was originally founded, the company offered the services of DVD rentals as well as DVD sales. Only a year after its foundation, they forwent the service of DVD sales and focused on rental services only. When you take a look at the history of Netflix, you will find that this is a company which struggled in its early days. From getting sued for the wrong advert, losing money through postal services and more, Netflix has thrived despite all that. The company even offered to be acquired by blockbuster.com, but their offer was turned down.
So, how did a company with so much failure turn out to be of the biggest streaming platform in the world today? It’s simple. INNOVATION. Netflix saw the direction technology was going, and they moved with it. Now they are reaping crazy dividends.
With the release of Artificial Intelligence, Netflix was one of the first companies to have been reported to have integrated the technology into their streaming service. This means via your interest, Netflix pushes you shows which are relevant to you.
Fee
With Netflix monthly subscription, which isn’t at all expensive, they have set a standard for the industry, which means anyone else coming in has to beat their standards or sit out. Beating their amazing fee is very unlikely for a new company. The reason is, Netflix has over 160 million subscribers. This means despite their small monthly fee, they still make crazy money. For a new company, you have to grow subscribers and offer something Netflix doesn’t already offer. How possible is that?
Video On Demand
While the sales and rental of DVD were what Netflix started with, they knew that was only the beginning. Netflix in the early 2000s originally had an idea to create a video on demand box, which was to allow users to download videos overnight and watch it the next day. This plan was made because of a slow bandwidth connection at that time. However, after YouTube became popular, they saw that video streaming could survive despite internet speed. From 2006 when DVD began to fall, Netflix already moved its business from its core model into online Video on demand.
Help Small Budget Movie Sell
With the reputation Netflix has built for itself over the years, it has established dominance in the entertainment industry. There are great movies we know nothing about simply because they are small budget movies. With the dominance, Netflix has established in the marketplace and the entertainment industry, they provide the best opportunity to help smaller budget movies see the light of day.
Continued Growth
The absence of growth in business has led to fortune 500 companies folding up over the years. Blockbuster is one of such company. In this regard, Netflix has been a company which has taken company growth to the next level. One of the founder if not both were visionaries, and they knew where the industry was headed and took lips and bound to get ahead. In an interview with Ted Sarandos who is Netflix chief content officer back in 2013, he stated that their goal was to become HBO before they could become them. Before that time, They were struggling with their streaming services, as content owners weren’t giving them good deals. It was at this point they decided to get into the ring themselves and produce their own movies. It was a risk they took, and it paid off.
International Awareness
With Netflix in the homes of people in over 190 countries worldwide, there just isn’t anything they can’t accomplish. International awareness, amongst other things, is what they have come to be known for. They have become a trusted brand and one which is known in the over 190 countries.
Ease In Access
With as little as a mobile phone, a smart TV or a computer, anyone can get access to Netflix and the thousands of shows and movies it offers. Accessing it is easy, and who doesn’t like ease.
The Bottom Line
These and more is how Netflix has renovated the entertainment industry and the way we have come to see movies today. I’m almost certain you are one of the millions of users of this amazing platform. I am right, please live a comment regarding how great you think they have Impacted the entertainment industry.
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