How Netflix Revolutionized the Way We Consume TV Shows
Netflix, a 1998-founded former DVD distributor has made its name by joining the opposing team – the online streamers. This is exactly why the company that used to deal with the DVD medium isn’t a commonly-known one. Before Netflix delivered its billionth DVD, it had already started changing its core business model to video-on-demand. Nowadays, it is a renowned independent TV show and movie distributor. But how did it come to this?
The Fall of TV
Netflix currently offers its services in 190 countries world-wide and has rightfully deserved its place at the top of the popular streaming industry. Subscribing to cable has become a rather hefty investment, with so many streaming sites available, with Netflix in the first plan.
Having tried to fight back with TiVo, the TV has ultimately failed to return to its former glory.
Although TV still claims the winning prize when it comes to sports events, streaming services that provide live footage, such as Sling TV, have yet to rise to power.
One of the biggest difficulties Netflix has to face is the very fact that a huge number of rising stars in terms of video streaming are just below the horizon. The vast majority of streaming magnates have made availability of a variety of TV material its name of the game. The game, however, has changed.
Not only did Netflix create an entirely new way of consuming TV program, but it made it possible for others to join. That is why today there are numerous alternatives, including the one which streams operas online – not something Netflix offers in availability.
Furthermore, these specialized services offer much lower rates than the mainstream magnates, so if a user has a niche that they want to stick to, companies such as Netflix, Amazon and Hulu are unable to turn more profit.
Not Just a Streaming Service
There is another innovation that Netflix has bought in, unrelated to streaming. Netflix has started producing its own TV shows, which only serves as evidence that the streaming industry has turned the TV-producing world upside-down.
Other large streaming companies have followed in suit, for example Amazon Prime, and forever changed the way we consume TV shows. The big money is now involved and the industry that once produced low-budget soap operas as a majority of its material is now becoming a full-blown Hollywood’s competitor.
Take the big budget Netflix shows like Orange is the New Black, Daredevil and House of Cards, for example – these shows have netted huge profits and are looking to become hits just as huge as blockbuster over the next few years.
Netflix in Numbers
Nothing serves as a better evidence of a change than plain numbers. In 2013 alone, Netflix has gained 2.3 million new subscribers, with numbers exponentially growing each year. Now reaching the number of 81 million subscribers, with international number reaching a 34 million high, the company has gone world-wide, with as much as 42% of its users being outside the US.
Netflix users watch as much as 10 billion hours per month, adding up to the total of 2015’s 42.5 billion streaming hours. These numbers are the best example of how Netflix has changed the way we watch TV.
It has definitely revolutionized the way we consume TV shows, but it has also done much more – Netflix has introduced a wide variety of other mainstream streaming services, as well as created opportunities for niche streaming services to surface.