Haley Henke
Mr. Reuter
Economics
October 7th, 2014
The Netflix Evolution
Just with a click of a button and a quick payment of $7.99 a month you can have multiple T.V series and movies at your disposal. As more and more subscribers are going to netflix we never really think about what is happening to the other companies. Are the companies like AT&T, time warner or Amazon plus becoming bankrupt? Well the craze of netflix has only gotten stronger as time has past and teenagers have found new interests in different netflix series’. Everyone is always talking about the new series that come out each and every day. Not only that but when new episodes of your favorite series are released all people seem to do that week are stay at home pouring over the tv.The demand going up for netflix clearly decreases the demand for the other substitutes of netflix. Since the demand for netflix has increased so has the compliments for netflix. They even make remotes with a simple netflix button now! That isn’t even all, they are making tvs now with netflix embedded in them already.
Now many have problems with the fact that netflix doesn’t put new series and episodes on netflix timely. But if they put it on right away, not only would you finish them quicker, they would lose your interest faster and then possibly losing your investment to netflix once you have finished all of your series. The demand for more shows is clearly showing the scarcity of all the shows and movies they have and their supply just cannot possibly keep up with the demand. Although netflix has found the best solution for this problem at the time being. They have been actually creating their own personal Netflix series. By doing this they are not only interesting their views in something completely new that has never been seen before it keep the viewers interested since they will always be anticipating something new. Jonathan Freidland tells us more about their original netflix series, “Because we have a direct relationship with consumers, we know what people like to watch and that helps us understand how big the interest is going to be for a given show. It gave us some confidence that we could find an audience for a show like ‘House of Cards’.” By seeing what others watch day to day and knowing exactly each interest of the consumer from personal profiles, they are able to have better success with creating original shows.
But does this really but other T.V companies out of business? Of course not, they consumers for those T.V networks may have decreased but Netflix will never have a live feed like the television. Also it is always fun to go out to the movies on a first date and have that experience in life. Not everyone wants to be cooped up in their house all day watching netflix, however we all have those days. Even though netflix is taking over the current online world, we all still like that original feeling of putting in that C.D and watching a movie with friends. Also netflix is not allowed to put new movies and series on right away that way Television companies are still making money.
Bibliography
"Netflix to double original content next year." SlashGear. N.p., n.d. Web. 6 Oct. 2014. <http://www.slashgear.com/netflix-to-double-original-content-next-year-23283406/>.
Carr, David. "Giving Viewers What They Want." The New York Times. The New York Times, 24 Feb. 2013. Web. 6 Oct. 2014. <http://www.nytimes.com/2013/02/25/business/media/for-house-of-cards-using-big-data-to-guarantee-its-popularity.html?pagewanted=all&_r=0>.
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ReplyDeleteEver since places like 'Blockbuster' or 'Family Video' have been shutting down, I feel like Netflix has become more in demand most definitely. This substitute good could be worth the $7.99 per month (about 3 movies worth at Blockbuster), if the consumer has a marginal utility of at least 3 movies per month, otherwise, people just buy it for the convenience. I also feel like it has to do with the obesity levels in the country today. Now people don't have to leave their couch at all to pick up a movie, it is available at the source of their fingertips. With the comparatively low price of Netflix and the thousands of movie titles to choose from, it's really no wonder why they are so in demand.
ReplyDeleteI have always been the type of person to complain about netflix not putting episodes on fast enough, but I never actually thought of it as a way of keeping people interested. Netflix replaced stores like Blockbuster with their original idea of just mailing movies to you and allowing you to keep the movie until you were done or tired of watching it. They got even more popular when they started streaming movies! For the price, Netflix could be one of the best deals around and I believe that is why the demand is so high.
ReplyDeleteI myself have netflix and I still watch live television. I remember when everyone would go rent movies from the local Blockbuster or Hollywood Video. Then, when Netflix came out, those companies went out of business and everyone got a Netflix account to stream movies and television shows. I was sad when Hollywood video had to close but I found it so much easier to just put a DVD in my Netflix queue and have it arrive at my house in the next two days. I agree that Netflix won’t put the commercial television providers out of business and that people will still continue to watch live television since Netflix takes forever to put new movies and television shows on their site.
ReplyDeleteYou do bring up a good point Haley. This goes to show just how quickly and exponentially a fad can grow, who would have thought even 5 years ago, that T.Vs now a days would be connected to the internet and you can directly access your Netflix, Hulu, or Amazon accounts. Who 5 years ago would have even thought companies like Netflix would be a thing? I do agree with you on how companies like Netflix won't ever take over big time T.V. corporations like Time Warner or Direct TV. There are just somethings that Netfix won't be able to have, and that includes live television.
ReplyDeleteI remember when my sister and I were little and my mom would drive us to Bockbuster to pick out a movie or two for the weekend. Of course, those memories will last forever, but I can’t imagine having to do that now. It sounds like such a pain. I know I’m completely addicted to Netflix and cannot wait for the new season of Orange Is The New Black to come out. I can completely understand why the demand for Netflix continues to increase.
ReplyDeleteI think your writing was good but you had a mess ups in you writing but i liked what you wrote about quite a bit. I Netflix is a very good company they don't over charge you to watch T.V. shows or movies. But i also think some of the shows they put on their are very inappropriate if parents don't block these shows. Kids can practically watch whatever they want if it isn't controlled. Netflix keeps many people going back they don't put the T.V. show up there right away so it keeps people coming back and wanting to watch more. Very good job i liked it a lot.
ReplyDeleteAnother thing that I think about when hearing about how Netflix is running TV companies out of business is the commercials. A lot of people may not think of that but for me one of the main reasons that I like Netflix more than TV is that there is no commercials. When more and more people are watching Netflix and not having to worry about commercials they are missing out on other companies trying to get there new products out to the public. So when you think about it, Netflix could eventually run other businesses out of business. But overall, this was a great post.
ReplyDeleteThis is a fantastic article highlighting how Netflix has been exponentially growing throughout the past 5 years. It's funny to think that Blockbuster had the chance to buy the once struggling service at a very discounted price but decided not to thinking this current fad we all know and love would never catch on. It goes to show that staying comfortable and not trying to better your business is truly a recipe for disaster in the business world. Netflix is doing a great job to keep reinventing themselves in order to stay relevant and in the lead when it comes to streaming videos.
ReplyDeleteNetflix has really come a long way since it was first created. When I first heard about Netflix, I was uninterested in it completely. I thought the simplicity of going to Block Buster or just renting movies on Satellite TV networks was much easier and efficient. It seems that Netflix has really made a name for itself now and I would agree that it's becoming the most popular way to watch shows and movies. I myself am now a Netflix member and I love it! Netflix is more efficient and economically beneficial to myself because of the wide variety of shows and movies given that meet my interests.
ReplyDeleteI remember when places like Hollywood Video, or Blockbuster were a thing. Now that you can stream movies and TV series from Netflix, I wouldn't be entirely surprised if Netflix were to replace cable altogether. Netflix has a wide variety for a low cost, there only downfall is time. Until Netflix does live streaming, cable and other substitutes will remain successful.
ReplyDeleteThis topic of Netflix is super relevant in today's society, because I personally only know a few people who don't have an account or don't actively watch. When it first came out years ago, it was a service that sent you DVDs to watch for as long as you want, and now barely anyone uses that feature, if it even still exists. The netflix company has done an amazing job of reinventing itself throughout the years and keeping its popularity, which it did through it's online videos. I know even my parents have talked about getting rid of cable because of netflix and the other online substitutes like hulu. With cable prices continuing to rise, I think netflix will keep gaining popularity in the future.
ReplyDeleteI don't think services such as Netflix is making much of a dent in cable companies for two reasons:
ReplyDelete1. Those companies offer more than just a cable service (Internet, Phone LInes, &c.)
2. A lot of shows are still only offered on Cable and aren't readily available to be caught up if the viewer depends on Netflix for seeing the episodes.
Netflix should be an alternative to people who don't want to pay hundreds of dollars a month to watch one show every sunday, but with people 'binge' watching, perhaps it is necessary to have such content archived and readily available for those who want it, even though an 8 series show was never meant to be watched in a week.
In other countries people don’t really use other substitutes for TV, like Netflix, everyone watches TV networks and it’s rare to have someone without less 100 channels. So before coming to USA I didn’t know that it actually existed. But since I knew about it I started using it right away and now I rarelly watch TV networks. I mean what most people probably think is why wasting a bigger amount of money for extra channels if you can have netflix and watch them? Netflix turns things much easier, if you want to see a season of a show that you really like you can just type it in, you can also see episods or seasons all over again, so it’s really flexible. Of course that, as you refered, one of the biggest disadvantage of Netflix existing is that it kind of puts down the demand of other companies. I think it’s really smart what they did about creating their own personal Netflix series.
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