Friday, March 6, 2015

The Streaming Giant

http://static.guim.co.uk/

A game-changing company, Netflix is a business that's gone from an 8 dollar stock to a 400 dollar stock in a little over ten years. What sets it apart?


We can find the answer to this question by looking at a leading business magazine, Business Insider' article: Netflix-- The Revolution

  1. Netflix has been around for about 18 years.
    For a company that's basically a child among the entertainment business, they've had more success than giants of industry. With a stock price that's jumped to over four hundred dollars in less than five years, it's kind of a business astounding.
  2. Netflix's advantage is scale.
    What brought Netflix past the Blockbuster gate at first was it's huge scale of of DVDS. An unlimited number of DVDS could be sent out via it's original postal subscription service. With this way, they could basically just own a storehouse, instead of paying for actual stores. And with such scale advantage, expanding to Europe was simple.
     
  3. The introduction of binge-watching.
    Sure, people used to dish out forty-bucks a pop for a box set of television. But once Netflix introduced its' streaming service, a new kind of watching emerged to the mainstream, Binge-Watching. Audiences could now take in whole seasons at a time with just a click and twenty second breaks to reevaluate their life choices. Now, a week seems to long a wait to most people.
  4. New business model.
    Netflix was the frontrunner of subscription DVDs and streaming, and seeing it success, it has emerging competitors from even regular TV stations.
  5. Netflix looks for rights to the most pirated films and shows of the time.
    One way Netflix goes around picking licenses is seeing what's being most illegaly procured at the time. By checking seeders on pirating websites like utorrent and before, PirateBay, they could go after licenses that would draw in those customers either to lazy to keep torrenting or morally conscience of what was being done.
  6. A new way to produce television
    We're all familiar with shows like House of Cards, Orange is the New Black, and Arrested Development. Netflix took a risk with these shows but with a display of confidence, buying a whole season at a time and not just a pilot, and hired emmy award winning actors, directors, and writers. They realize that it takes just an episode to get a customer to subscribe.
  7. Netflix decimated blockbuster
    It's basically a decade dater now, that blue ticket trimmed with gold. But once Netflix arrived in the late 90s, it became a drawn out battle for the once-popular rental store. The convenience of home delivered DVDs became the undoing for the Rental Giant.
  8. It's biggest competitors.
    Now, Netflix doesn't just face competition from the usual suspects, Hulu and Amazon. But TV stations aren't trying to ride the coattails of the global streaming service. Offering their own episode streaming, CBS, MTV, and FOX are trying to gain ground. But still people complain about the constant 2 minute commercial breaks that even exist online.
  9. Netflix has just launched into the European sector.
    A expansion that barely took any effort, Netflix has now spread out across Europe. Those who went and pirated Netflix produced TV now have that option to watch it with easy access and it's creating a nice profit and opportunity for the company.
Q: How will this challenge competitors in Europe Sector, like the BBC and ITV?
Q: What effect does this have on Satellite Services (I.E. Dish, Comcast)

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