Netflix just turned 20 – The Evolution of the Television Service Industry!
After 20 year, Netflix has evolved from a tape rental service to an innovative online TV service and financial power that many Hollywood studios nowadays do not.
Prior to April 14, 1998, moviegoers had spent most of their Friday nights watching at the cinema. However, after that, Netflix.com was born, instead of going to theaters, now you can rent each movie for a few dollars plus shipping fee. After about 2-3 days a red envelope attached to a DVD will be delivered to your mailbox. After seven days, you will have to return the DVD in the same envelope.
This model was introduced by large manufacturers such as Philips and Sony in the mid-1990s. The VHS (video home system) was popular, but there were also difficulties and costs. Delivered to the customer safely. Co-founders Reed Hastings and Marc Randolph tested the growing ability of this growing type by sending a CD in a blue envelope to Hastings’s home to test his own service. . At the time, Netflix was still a promising seed.
“Starting with 30 employees, no one expected the server to crash because of the overloaded website,” Gina Keating wrote in her book Netflixed: The Battle for America’s Eyeballs.
By combining Silicon Valley technology with almost every aspect of Hollywood, Netflix has become the world’s leading television and video store service. It has more than 117 million followers in most countries in the world, with more than 5,500 employees. Netflix generated revenues of more than $11 billion in 2017, and is worth about $135 billion, more than any other competitor in the industry.
Ironically, Netflix does all that by revising the business model that has been seriously damaged by this media.
Netflix – The Video Store:
Historically, each film has been going on continuously for about 1-2 months since its debut. But for popular films such as E.T ( Extraterrestrial ) are singled out for more than a year, played back in cinema several times or broadcast on TV. Until the record stores appeared in the 1980s and 1990s, viewers could experience those movies right at home. This creates a market for old movies that are no longer in theaters.
Netflix did so when he was born in 1998, with about $2 million in cash from Hastings, who sold his first company, Pure Water, and money from Randolph’s parents and founders. Integrity QA – Steve Kahn. Netflix debuted with no more than 1,000 recordings, most notably 1997 with the releases of L.A Confidential and Boogie Nights. Mitch Lowe, Netflix’s first CEO, said he convinced a friend at Warner Bros. selling him 230 copies of each of these films. However, Netflix needs more than that to achieve the required number of followers as much as possible.
Over the next few years, Netflix has added a host of additional directories, from TV shows and classic movies to small movies and documentaries, into its e-library. Particularly new movies are always the hardest, because filmmakers always want to maximize their revenue from theatrical release.
Hollywood always keeps on growing by ensuring that people who want to enjoy the best products spend the most money, and others have to wait, Ben Fritz said in his book. he – The Big Picture: The Fight for the Future of Movies. Movies hit cinemas first, then home video, and, later, TV and subscription streaming.
However, as there are no new releases, filmmakers and system operators have found that cheap video or movie rentals are gaining in popularity among the ” movie lovers “after Netflix launched its video streaming in 2007.
This form of streaming video helps Netflix get more content for users to rent or watch online, so they spend a lot of time on this service. Streaming video has the function of nominating content that is “hot” to the user based on the views of other people, which sounds like the service provides a useful “clerk” on the subject. media – cinema.
Lowe, the former CEO of Netflix and currently working for MoviePass, said: “Netflix’s great breakthrough was that there are many, many more components of a film than genre, actor, director, time period that go into why you might like or be interested in seeing a film”. The more effective the recommendations, the more people use the service, because the online videos are personalized for each user based on the interests and habits of the viewers like them. Netflix now says that 80% of the programs viewed on this platform are offered by its proponents to the user.
In 2010, Netflix’s subscriber surpassed the 20 million, inspiring the launch of other online services such as Amazon or Hulu. Traditional Hollywood studios are now aware of the war they face. That same year, Blockbuster filed for bankruptcy. People are now able to watch television almost any time they like on the Internet, marking a dramatic drop in viewership on TV channels by the time frame.
Netflix – The Studio
In 2011, one of HBO’s rivals Starz terminated its online TV deal with Netflix to avoid losses. “Sniff” sees the change, Netflix embarked on a reform. That same year, the company launched its first “original” series, the House of Cards. It was a unique event at the time, because unlike traditional films that needed to sell tickets and insert ads, Netflix needed only a few people to track growth every month. The box office and rating do not make sense.
In the finale of the small screen, the show will be the hen for Netflix the first golden egg money. But they gradually realized that no matter how many TV series they produced, movie movies consistently accounted for a third of the viewers.
In 2015 Netflix’s first long-awaited film, Beast of no Nation, mimics the campaign Netflix used to beat traditional tape recorders: to show the film in a previous video version and then to take it off. if the focus is enough attention from the public. Typically, a movie must be aired at least 90 days before the video version is released. But a movie with a particular audience and cost-wise would be even profitable just by selling the disc without the theater.
This pattern turned out to be effective with Netflix. For example, no one is sad to see Adam Sandler again, but people are still looking for him on Netflix. So this service in 2014 signed four film contracts with comedians down to the stage, and although critics have denigrated dirt, Sandler’s movies are still Netflix audiences roared.
Netflix is committed to the field of film art. Independent projects such as Mudbound or Okja have made this television service’s performance much deeper. Then the big names came to Netflix: You only need to spend a few dollars on average to watch War Machine with Brad Pitt and Will Smith, instead of paying close to ten dollars to the theater; then director Martin Scorsese with a hundred million dollars film project backed by Netflix to his full load.
Looking back to Hollywood today: old, pompous, noisy, relying on the charm of remakes, post-story, superhero, superhero movies, shaking hands with Chinese corporations, we recognize Netflix is a new role model for the studio in the future: dare to risk giving the filmmakers the opportunity for their audiences to accept it.
More than half of Netflix subscribers are outside the United States. Last year, Netflix’s revenue reached $8 billion and they plan to spend $2 billion on their operations in 2018 (Netflix will spend $1.3 billion by 2017). The deal, directed by producer Ryan Murphy, to $ 300 million, is a move by Netflix that shows they are ready to pour money into recruiting talent. Netflix is trying to put money into many gates. Some will win, others lose, but “that’s part of trying new things.” With Netflix, they are not afraid to try.