Netflix is considered a powerful
provider of on-demand Internet streaming of television shows and movies. There
are currently 39 million U.S subscribers (Smith). Netflix has had an impact on broadcast and
cable networks. According to 5 Things Netflix, Inc. Management Wants You to Know from the Motley Fool,
Netflix is becoming heavily invested and focused on creating original content. Netflix
also has partnered with different networks, which allows their back catalog of
programs to air on Netflix such as Family Guy, Friends, etc. Will the on-demand
Internet streaming of television shows and movies such as Netflix dominate the
media market over broadcast and cable television?
Netflix has spent more than $100 million in 2014, while earning a net
income of $267 million. Despite the net income of $267 Netflix won’t be beating
out cable networks anytime soon (Levine-Weinberg). As a result of the Nielsen
Report, it is possible that Netflix may be responsible for the 3% drop of using
televisions in homes (Smith). Netflix may be winning over television viewers,
but according to CBS chief Research Officer David Poltrack, he
believes Netflix is highly dependable on TV networking programs (Lieberman).
But there is a strategy to content that they stream. Netflix streams shows like
Friends, a series where you can basically start watching at any point in any
season. Many other networks such as USA and TBS air some of these best-syndicated
shows. According to an article from the Business Insider, there was not a lot
of competitive advantage for Netflix since theoretically anyone who wanted to
outbid Netflix could then license the same shows that they stream (Bushey).
Netflix
took on a different strategy and began to stream shows that did not necessarily
do well in syndication such as Breaking Bad or Lost. These different series require
an individual to watch the show from the beginning of season 1. It compels the
viewers to watch all of the episodes, unlike shows such as the Big Bang Theory
where you could watch 1 or 2 episodes, laugh, and be done with for the day.
Producing shows like House of Cards is very similar to Breaking Bad. You cannot
just jump into the show and expect to know what’s going on or expect to be
completely hooked. They’ve created these original series specifically for
people to binge watch.
Television
networking programs are also dependable on Netflix. Back in 2011, Netflix made
a $1 billion deal with the CW. The deal was able to increase CW’s revenue
considering the network was never very popular (Grossman). The low ratings of the CW network have changed
since partnering with Netflix. Shows such as Supernatural and The Vampire
Diaries are becoming quite profitable because of Netflix. Netflix yields
millions of dollars in revenue by gaining the streaming rights of these shows.
Netflix and The CW are both making profit every since the partnership. Most of
Netflix shows are not original series, which is why most of their profit is
coming from the help of other networks (Adalian).
Netflix has a plan of their own in terms of taking over broadcast and
cable networks. According
to Netflix’s Long Term View of their future as of January 20, 2015, they
believe “Internet TV is replacing linear TV”.
What’s great about Netflix is there is more room for flexibility in
terms of slots to fill. Normal cable networks compete with each other for
prime-time slots, whereas Netflix has complete seasons of television shows
online that have aired on TV in the past. Usually cable networks need to
research and determine which time-slot would be their best fit for a specific
show to attract an audience. Netflix seems to be more simple and less complex,
especially when airing their original series such as Orange is the New Black
and House of Cards. They believe their approach is more successful than a week-to-week
episode structure. Audiences don’t have to wait for a whole season to become
available after a few months (“Netflix Long Term View”). If Netflix wants to be
the future of television, they have some work to do.
Currently
Netflix only offers television shoes including past seasons of shows airs on
television, their own original series, and movies. If Netflix thinks they can
replace television, they’ll need to have more to offer. What about the sports networks and the news?
Unfortunately according to the Weekly Standard, it may be very difficult to
include news segments on Netflix since their main target audience is to
entertain others, not to inform others (Lehrer). As stated before, if Netflix wants to compete with broadcast and cable networks, they have some work to do. Personally I don't think they should fall in that direction. They are an entertainment streaming service.
Works Cited
Adalian, Josef. "CW Boss: Netflix Is Really, Really Important to Our
Business Model." Vulture. New York, 30 July 2013. Web. 08 Feb. 2015.
Bushey, Ryan. "How The $400 Million Loan Netflix Just Took Out Will Help It Undercut Hollywood." Business Insider. Business Insider, Inc, 05 Feb. 2014. Web. 07 Feb. 2015.
Grossman, Ben. "Why The $1B CW-Netflix Deal Should Catch Your
Attention." Broadcasting & Cable 141.39 (2011): 30.Communication &
Mass Media Complete. Web. 8 Feb. 2015.
"Kevin Spacey Urges TV Channels to Give Control to Viewers."
YouTube. The Telegraph, 23 Aug. 2013. Web. 08 Feb. 2015.
Lehrer, Eli. "The Netflix Effect." The Weekly
Standard. N.p., 3 Mar. 2014. Web. 7 Feb. 2015.
Levine-Weinberg, Adam. "5 Things Netflix, Inc.
Management Wants You to Know." The Motley Fool. 27 Jan. 2015.
Web. 7 Feb. 2015.
"Netflix
Long Term View." Netflix. N.p., 20 Jan. 2015. Web. 03 Feb. 2015.
Smith,
Craig. "45+ Amazing Netflix Statistics and Facts." DMR Digital
Marketing Ramblings. N.p., 07 May 2014. Web. 02 Feb. 2015.
Whitfill, Tiffany. "Cable Subscriptions Low since Online
Steaming Gained Strength." University WireFeb 06 2015. ProQuest.Web.
8 Feb. 2015.
Netflix is slowly taking over television. It is a great fast and instant gratifying ways to get your shows at your own convenience. From binge watching your favorite series, to watching old shows and movies, Netflix has it all and is already taking over many viewers from television. They are using media convergence, and is an over the top brilliant service to offer their customers. Although, like the lead blogger stated, Netflix thinks they can replace television, they’ll need to have more to offer. What about the sports networks and the news? Unfortunately according to the Weekly Standard, it may be very difficult to include news segments on Netflix since their main target audience is to entertain others, not to inform others (Lehrer). As stated before, if Netflix wants to compete with broadcast and cable networks, they have some work to do. According to the “5 Things Netflix, Inc. Management Wants You to Know” article, “Analyst Mark Mahaney asked why Netflix needed more capital if it expected to stay profitable for the next two years and then become even more profitable thereafter. The answer is that Netflix is investing heavily in new original content. Whereas Netflix pays for second-run content over the course of the license period, typically it must pay production costs up front for its originals. As a result, Netflix burned more than $100 million in cash in 2014, despite earning net income of $267 million. This gap between net income and free cash flow could widen in 2015, due to increased original content production.”
ReplyDeleteI believe for Netflix to seriously and realistically begin to take over television and have an even bigger negative impact on broadcast and cable networks they need to begin o think about expanding what they already stream. For instance, as an avid sports fan, I think beginning to attempt to get the rights to stream sporting events or highlights would be a huge plus and generate a lot more revenue and users for Netflix. As of now, Netflix is a entertainment business and that is their main target audience, although by bringing sports and news into the picture, they can then widen their demographics and target margins to a greater perspective. According to “Netflix Soars on Subscriber Growth” content wars have intensified, with competitors increasingly pushing into the streaming video space. With Amazon, and Amazon Prime, HBO GO and the plethora of other streaming Internet networks out there that are also over the top users like Netflix, Netflix needs to begin to differentiate themselves from their competitors and begin to think outside the box. I strongly believe that eventually one of theses over the top services will begin to go down that road or streaming sports and news, and when they do they will begin to see the true value and see serious competitive advantages over other cord cutting and shaving business such as Netflix. “Not that long ago, the idea of having a new show air on Netflix rather than a traditional broadcast or cable TV network was considered revolutionary -- or just plain strange”: according to 5 Things Netflix, Inc. Management Wants You to Know, maybe Netflix ought to look at that idea again and possibly they will begin to see some financial growth.
Work Cited
Fool, Motley. "5 Things Netflix, Inc. Management Wants You to Know." N.p., 27 Jan. 2015. Web. 9 Feb. 2015. .
Gensler, Lauren. "Netflix Soars On Subscriber Growth." Forbes. Forbes Magazine, 20 Jan. 2015. Web. 09 Feb. 2015. .
I think you’re right in a sense that Netflix has a lot further to go if they want to take over cable tv in all households. It is crazy to think that Netflix streaming is fairly new and that not too many years ago, Netflix was basically a dvd rental company. In such a short time they were able to be where they are today, contracting their own tv shows for customers. Seeing as Netflix has come so far, I have no doubt they will continue in the path needed to reach their goals. The concept that Netflix is a great outlet for series shows that need to be watched in whole such as Breaking Bad and Lost is extremely beneficial to consumers since there wouldn’t really be many other legal ways of watching them. It also in the long run helps the networks because people are able to catch up watching Netflix and be prepared for the next season. The fact that Netflix has begun to stream original content is extremely beneficial to consumers as well as the Netflix company. It is significantly cheaper for Netflix to produce it’s own shows than to purchase licensed content. According to the article, Netflix Soars on Subscriber Growth, “Netflix says it will produce 320 hours of original programming this year, triple the amount in 2014” (Gensler). This proves that Netflix is continuing to grow and take in more money. As for the viewers, Netflix streaming original content is beneficial like you said because of the binge-watching aspect. The fact that House Of Cards was brought to Networks and was asked to just air a pilot first before proceeding, but now looking back at how successful that show has been on Netflix is an eyeopener. Agreeing with the Youtube video, Kevin Spacey proves that people really want the control. This is so important because cable tv is not able to give consumers the control. Binge-watching is such a new concept, but an important and growing one at that. I also think that the ability for consumers to be able to watch Netflix on a mobile or tablet device is also a huge part to their success. Based off of the article, TV Is Dying, And Here Are The Stats That Prove It, “We're at the beginning of a major historical shift from watching TV to watching video — including TV shows and movies — on the internet or on mobile devices” (Edwards). Agreeing with you, the idea that sports channels and live events aren't able to be played on Netflix is where I see the biggest issue. I think Hulu has down the concept with putting up the shows and events the next day works well, but still it’s not instant. The most interesting part to me is how are television ads going to be affected. So many companies rely on the television to reach consumers and sell their product. With Netflix, there are no ads, and I think that is another reason Netflix is so successful with their customers. I am curious to see how Netflix takes it’s next steps, but I have no doubt they will find a way to satisfy viewers and win over the current cable viewers.
ReplyDeleteWorks Cited
Edwards, Jim. "TV Is Dying, And Here Are The Stats That Prove It." Business Insider. 24 Nov. 2013. Web.
Gensler, Lauren. "Netflix Soars on Subscriber Growth." Forbes. 20 Jan. 2015. Web.
Danielle Morin
ReplyDeleteI agree with Saleena, Netflix has had a big impact on broadcast and cable networks. As stated by Jim Edwards from Business Insider, according to Citi research there has only been negative ratings growth on broadcast and cable TV since 2011 (Edwards 1). This can possibly be attributed to over the top services, including Netflix. “Cord cutting”, which is being able to watch TV without having a cable or satellite subscription (Roku, Netflix, Hulu, Apple TV, etc.), is bad news for cable and broadcast networks. It allows viewers access to much of the same content but at a lower price. The article goes on to explain that rising costs of cable TV are pushing out “poor subscribers” and therefore causing a higher number of cord cutters (Edwards 11). This cord cutting is definitely having a negative impact on broadcast and cable networks. All the OTT services cause higher costs of subscriptions, which only influence more cord cutting. It is a vicious and negative cycle for the networks and one that needs some type of resolution. Some are turning to web streaming, which can help mitigate the issue.
In order for Broadcast and Cable networks to get out of this negative cycle of losing customers they may take the same route as CBS. CBS has recently started web streaming, which is great news for cord cutters. It will now offer a streaming service that lets viewers watch its live programming and other past shows on demand. Leslie Moonves, chief executive of the CBS Corporation stated, “It is an important part of our future. Our job is to do the best content we can and let people enjoy it in whatever way they want. The world is heading in that direction” (Steel 1). They are now joining HBO with what is a response to Netflix’s successes. Whether they would like to face it or not, Netflix has changed the game and forced networks to make changes. This created a chain reaction amongst HBO, CBS NBC, and many others.
One other important thing Saleena discussed in her blog was how Netflix believes they can replace television. I agree with her on her standpoint that they’ll need more to offer. And although it would be difficult for them to incorporate news and sports it would probably be beneficial. However, according to Jim Edwards of the Business Insider even sports viewership is going down. The ratings for the Worlds Series and NBA are way decreased with viewers specifically in the age group of 18-49 (Edwards 3). As far as news is concerned many people access their news through social media, such as Twitter and Facebook. Adding Sports and News doesn't seem to fit in with their entertainment streaming service, but since cord cutting is getting much more popular it could be beneficial in targeting that audience specifically. Sports fans who are cord cutters would be able to have access to it all on Netflix, instead of getting multiple over the top services. According to Netflix’s interview with Two Wall Street Analysis they have already invested heavily in new content (Motley Fool 1). It will take more than just original content to take over TV and although it could help, it is the plethora of choices from their many different sources that makes Netflix so desirable.
Works Cited
"5 Things Netflix, Inc. Management Wants You to Know." The Motley Fool. 27 Jan. 2015. Web.
Edwards, J. (2013, November 24). TV Is Dying, And Here Are The Stats That Prove It. Retrieved February 7, 2015.
Steel, Emily. "Cord-Cutters Rejoice: CBS Joins Web Stream." New York Times. 16 Oct. 2014. Web.
Although I agree with Saleena and Danielle about the growth and successes of Netflix, it also makes me question the ability for media such as Netflix and Hulu to take over major broadcast and cable networks. Reason being is because this change would realistically take so long for all generations watching and engaging in television to actually transition from traditional media platforms to only online streaming. There is a certain beauty to watching live news on the traditional media platform of a television screen. I think that baby boomers, and older millennials are going to have a hard time just switching from broadcast and network channels, to watching news anchors and reporters report the news on a platform such as Netflix. For example, according to The Wrap TV Team, there are so many people who have been loyal followers of Late Night’s Jay Leno, who then turned to Jimmy Fallon. These viewers are people that are loyal enough to watch it live (as it was intended to be viewed.) “Jimmy Fallon not only kills it on Nielsen sheets, but also often tops Jimmy Kimmel and David Letterman combined.” (The Wrap’s Best & Worst of 2014) In my opinion, you can’t just make these numbers and this type of viewership up. So although I see Saleena’s point of Netflix effecting traditional television viewing, I don’t think it will necessarily ever be able to replace it.
DeleteHowever, it is still important for major broadcast networks to add more live streaming access to their other media platforms. According the Wall Street Journal, NBC has already started launching a live stream of their broadcast network. Their strategies of reaching their audience are smart because they are still “requiring people to be pay-TV subscribers.” What is smart about this is that it promotes more brand loyalty for NBC viewers and Comcast/Xfinity consumers, while at the same time always maintaining a profit of any viewership. NBC’s initiative is to have “TV everywhere.” I think it is extremely smart to push their live streaming of Sunday night football, the Olympics, the super bowl, and the rest of their high viewing shows, online and on other platforms because it allows people to “watch TV without a TV” (Alison Moore, The Wall Street Journal).
Although I am a true fan of traditional media, I won’t deny Netflix of their abilities and successes thus far. Like Natalie said, they really are doing everything right. The reason why any network is even changing their ways of output in the first place, is because Netflix and other streaming devices are a direct cause of less viewership on major broadcast networks. If someone who isn’t able to catch the Tonight Show live, they very well can see it either on demand or online. This is not something that is more negative than positive; it is just different. Although Jimmy Fallon can still be viewed, the way he is being viewed is different than Nielsen and research analysts are used to.
works cited:
Flint, Joe. "NBC to Live Stream Network Shows." Wall Street Journal. 16 Dec. 2014. Web.
"TV's Winners and Losers." The Wrap. 31 Dec. 2014. Web.
Edwards, Jim. "TV Is Dying, And Here Are The Stats That Prove It." Business Insider. 24 Nov. 2013. Web.
I think it is very true that Netflix and other streaming services have completely changed the way people watch television. This is also true with the enhanced viewing experience that comes with cord cutting and the ability to consume content on whatever platform is easiest or most convenient. Different situations sometimes require different viewing options. In the morning, it might be easier to get news on the television or on the computer, but streaming options provided by companies like Netflix, Hulu, and Amazon might be more accessible via smartphone or tablet. These devices are obviously much more mobile than a laptop or television. With the ability to consume massive amounts of content at the tap of a touchscreen, people are watching more media content than ever, but it is not the same kind of viewing that most people are used to. Time-shifted television has taken over. According to Jim Edwards, a writer for Business Insider, “the TV business is having its worst year ever.” Classic cable providers lost thousands of subscribers in the past year alone, and that trend looks to continue as more and more companies shift their focus to more widely accessible options like streaming. Edwards went on to say, “It used to be that up to 500,000 new subscriptions would be added across all companies in any given quarter. But now, cable and Internet companies are lucky if they get any new subscribers at all,” (Edwards). This seems to prove the growing popularity of streaming. Just think about how much easier and more convenient streaming really is. Instead of watching the strictly scheduled array of cable programming, which may not always provide a desirable option, Netflix provides many different types of people with whatever type of programming they might enjoy. The future of Netflix may also prove to be bright. With the help of more original content like House of Cards and Orange is the New Black, Netflix might be able to put itself on the echelon of companies like HBO and Showtime. According to Motley Fool, “The success of its original content has been one important driving force behind Netflix's growth,” (Fool). If Netflix, or possibly even another streaming service like Hulu, can come up with enough original content to compete with HBO, they may be able to take advantage while audiences are leaving their cable companies by the hundreds of thousands. These audiences have proven to be profitable ones in the past, and more efficient streaming options may be the most lucrative technological adaptation for society since cable television. I think that companies will continue to mold to this societal trend, as smart phones and televisions get bigger (or smaller?) and smarter based on consumer desires. The way people watch their content will continue to change as technology gets more advanced.
ReplyDeleteEdwards, Jim. "TV Is Dying, And Here Are The Stats That Prove It." Business Insider. 24 Nov. 2013. Web.
Fool, Motley. "5 Things Netflix, Inc. Management Wants You To Know." 27 Jan. 2015. 9 Feb. 2015.
Let me start off by saying that Netflix is doing everything right. On one end of the spectrum, they have shows and movies from the past that make us nostalgic and want to binge watch old Disney movies, and on the other end they have todays most popular shows with the newest episodes, that also make us want to binge watch. Not to mention, they have even have several original series such as Orange Is The New Black, and House Of Cards. They even have original stand up like Chelsea Handler, who released her stand up act for her book tour “Uganda Be Kidding Me,” on Netflix first.
ReplyDeleteAccording to Jim Edwards, the ratings for broadcast and cable television are down, and Netflix and online streaming are definitely the cause of it. People are no longer watching shows during prime time hours and instead, are watching it on their own time. Edwards refers to iPad’s and other tablets as “vampire media” in the sense that they come out at night. I know for me, I tend to catch up on my shows at night before I go to bed, and the way I do this, is through online streaming. If I am not binge watching Friends on Netflix, I am catching up on Revenge or The Vampire Diaries via their respected channels website.
I also believe that the reason ratings are down is due to the fact that less people are watching their shows on actual televisions. This goes back to whole “vampire media” thing. Tablets, iPhones, Androids, and laptops have become a huge part of our society and it is becoming our main source for everything. This pertains especially to people who are constantly on the go and don’t physically have the time to sit down and watch a television show. I know that I am guilty of watching shows on my iPhone on a long car ride, or even in the nail salon waiting for my nails to dry.
Society nowadays has become very lazy, and we have become people of convenience. Sometimes, it may not be convenient for a viewer to watch one of their favorite shows on a Monday night when it originally airs, but maybe Tuesday during the day they have the time to watch it. For $8 a month, Netflix has made life more convenient for us lazy viewers. Also, the fact that major television networks such as ABC and the CW, post their latest episodes within 24 hours, makes viewers feel like it is okay to miss the show when it first airs because there are other, more convenient ways to consume it afterwards. “Never before has so much high-quality, original programming been available to viewers whenever they want it.”- Tim Malloy. According to Lauren Gensler, the number of Netflix subscribers has gone up to 57.4 million worldwide, which goes to show you how many people, are utilizing it.
Netflix has also, in my opinion, helped cable television in a way. Like Selena said, Netflix allows viewers to watch a series, beginning from season one. If there is a show currently on TV that you are interested in watching, but it is in the middle of season 3, you can just log on to Netflix and catch up on the whole series, and then be able to watch the newest episodes when it airs.
Edwards, Jim. "TV Is Dying, And Here Are The Stats That Prove It." Business Insider. 24 Nov. 2013. Web.
Gensler, Lauren. "Netflix Soars on Subscriber Growth." Forbes. 20 Jan. 2015. Web.
Malloy. Tim. "Battered Networks Blow Up Traditional TV Schedule to Take on Cable, Streaming Rivals." The Wrap. 14 May 2013. Web.
Megan Maher
ReplyDeleteThe way we watch television has drastically changed over years. Instead of everyone gathering around the television to watch a show, people can watch whatever they want, usually whenever they want. This can be done using online streaming services such Hulu, Amazon, and of course Netflix. Netflix has become one of the world’s leading online streaming services with 57.4 million subscribers worldwide (Gensler 2015).
I believe that these streaming services are changing the way cable networks present their shows has become different in relation to how many people have switched to online streaming. Now, while Netflix is on the rise, I feel like a lot of people still watch television live or at least with the DVR especially with shows like Modern Family or How to Get Away With Murder (O’Connell 2014). The major change comes with the fact that many online streaming services are creating their own original content, which gets released with all the episodes in the season (Fool 2015).
Like I said before, people are still watching television, just not as much as they used to. A lot of these people are leaving network television in order to go online because it can sometimes be not only cheaper, but also easier to access the shows you want (Edwards 2013). Therefore many networks are going online, just like NBC, with options that allow viewers to watch shows without having to have a subscription to a certain service (Flint 2014).
With everything going online, it can be easy to see why people think that cable television is going under. The specialized channels like HBO or Starz are still being watched, or are sometimes the only channels watched on television, like they are in my own home. Jim Edwards even says, “It's not too surprising that broadcast TV ratings are down. The major networks have faced increasing competition for years from niche-interest cable channels and the better-quality programming on places like AMC and HBO.” (2013)
But even these networks are going online to create a streaming service because not everyone has their channels as a part of their package (Steel 2014). They said their reasoning for doing this was because of the, “10 million homes in the United States with web service but no traditional cable or satellite television subscriptions — half of which, he said, subscribed to a streaming service.” (Steel 2014)
Despite the fact that most of the top shows on television are still part of broadcast networks like CBS and NBC, HBO still chose to go online (Nielson.com 2014). Personally, I believe it is because Netflix truly has changed the way networks look at how people view their shows. In some ways, I think that people would rather wait for shows to come out on Netflix before watching them so they don’t have to wait weeks or months for their show to come back.
The same principle goes into Netflix’s original shows that release all the episodes at once. Amazon has even caught on and created shows of their own, one of which just won a few Golden Globe Awards. But still it may take a while for the full online takeover to happen. Many people still have cable and use it frequently, while others have started using other services in order to watch their favorite shows. So it may be hard to fully grasp how much things have changed in how we watch television.
Works Cited
Edwards, J. (2013, November 24). TV is Dying, And Here Are The Stats That Prove It. Business Insider.
Flint, J. (2014, December 16). NBC to live stream network shows. Wall Street Journal.
Gensler, L. (2015, January 20). Netflix Soars of Subscriber Growth. Forbes.
Levine-Weinberg, A. (2015, January 27). 5 Things Netflix, Inc. Management Wants You to Know. The Motley Fool.
Nielsen.com (2014, December 15). Tops of 2014: Social TV. Nielsen.com.
O'Connell, M. (2014, December 30). The Highest-Rated Broadcast Series of 2014 — and How People Watched Them. The Hollywood Reporter.
Steel, E. (2014, October 15). HBO Plans New Streaming Service, With Eye on Cord Cutters. New York Times.
I have to start off by saying that Netflix is absolutely genius. Right now, I could not imagine what my life would be if I was not a subscriber. I am the queen of binge watching along with thousands of other people. The reason Netflix is so successful is due to the fact that it gives viewers the option to watch what they want and when they want it. Netflix is centered on viewers and their schedule making this online viewing, life changing.
ReplyDeleteThis on-demand Internet streaming website is a total game changer to the television industry. There is so much that Netflix has to offer that cable and broadcast television does not. The fact that you can watch a whole television series in just a couple days is brilliant. In my opinion, Kevin Spacey said it best. Spacey mentioned the reason Netflix is so effective is due to the freedom. As mentioned earlier, this online television gives the audience control by giving them what they want, and when they want it. People don’t always have time to sit down and watch a television series weekly. This is why the binge-viewing feature is the best aspect of Netflix.
Its crazy to think how fast Netflix has grown within the past couple of years. I remember as a freshman, I signed up to get DVD’s delivered. I thought that feature was cool but it has grown tremendously since. Now the company has a total of 57.4 million subscribers worldwide, according to Lauren Gensler in her article “Netflix Soars on Subscriber Growth.” The best part is, the company is just going to keep on growing. Netflix is constantly adding more and more content to please viewers because in all, that is what they want. Again, going back to Kevin Spacey, he was totally correct when he said the audience just wants stories.
Taking content from cable and broadcast is only a sliver of their success. Since original programming on Netflix has been a hit, such as House of Cards, this component is going to soar. I believe in the future this is going to have a huge effect on the industry. I mean why would agencies pitch to cable and broadcast when there is such a large incline and success from Netflix?
Cable TV subscribers are declining and Netflix seems to have a huge influence. According to Jim Edwards in his article “TV is Dying, And Here Are The Stats That Prove It”, nearly 5 million cable TV subscribers have gone elsewhere in the last five years. I’m not saying that Netflix is going to completely out run cable and broadcast right away, but in the future, you never know. I agree with Saleena on how Netflix has a lot of work to do if they ever want to reach this point. Netflix has so much room for opportunity. To compete with broadcast and cable television, Netflix is going to have to add more features and I one hundred percent believe they can. Netflix has come thus far and I cannot imagine what is next.
-Taylor Roberts
Works Cited
Edwards, Jim. "TV Is Dying, And Here Are The Stats That Prove It." Business Insider. 24 Nov. 2013. Web.
Gensler, Lauren. "Netflix Soars on Subscriber Growth." Forbes. 20 Jan. 2015. Web.
Although the popularity of television will not be as popular as it use to be, broadcast and cable television will still be a necessity. Netflix will not be able to kill off broadcast and cable television because of large events such as the Olympics. No matter how many original series produced by Netflix, Netflix will never have the capability to cover live events and because of that, broadcast television will never die. Jim Edwards makes good points about the decline in the viewing of the World Series and the NBA, there are still people who are always going to watch it. Netflix does not have the ability to provide a service of covering sports events and have commentators.
ReplyDeleteNetflix and broadcast/cable television are different things that provide different services for the view. Netflix provides “a here and now, what I want and when I want it” services. You enter Netflix knowing full on well what you are getting into. You are very specific on what you want to watch, but what if you don’t know what you want to watch? Then what will you do? With television, if you don’t know what you want to watch or what you’re in the mood for, you have the option of flipping through the channel and possibly land on something that will spark your interest. Netflix cannot take that away from broadcast and cable television.
Broadcast and cable television networks such as NBC are also advance with the times and offering live stream of its broadcast network online to be view on computers or mobile devices. People will be able to watch USA, E!, Syfy and Bravo on their phones and on their computer. With this advancement it will allow broadcast and cable television to be more competitive in competing with Netflix.
Works Cited
Edwards, Jim. "TV Is Dying, And Here Are The Stats That Prove It." Business Insider. 24 Nov. 2013. Web.
Flint, Joe. "NBC to Live Stream Network Shows." Wall Street Journal. 16 Dec. 2014. Web.
Abigail Sisti
ReplyDeleteI definitely think that Netflix is taking over the television industry. Instead of people watching shows throughout there season, people wait and binge watch the series. Netflix is changing the way the viewers are watching television. The tradition of television is changing because of Netflix. “Netflix says it will produce 320 hours of original programming this year, triple the amount in 2014” (Gensler). By Netflix producing original programs, Netflix is growing their company. By Netflix doing this it will cause additional competition with other networks. I believe that Netflix has started a trend. Amazon is now buying rights to films and television series. I think that streaming is popular because it is convenient for viewers. I agree that television shows rating must be decreasing due to streaming.
Netflix has changed the game of television. Some original programs of Netflix is Orange Is The New Black, and House Of Cards. These shows have become very popular just through the Internet. I feel that a lot of Netflix programs become popular from word of mouth. “The success of its original content has been one important driving force behind Netflix's growth,” (Fool). I think for Netflix to put up full season of a show it makes people binge watch. Binge watching has definitely increased because of Netflix. Netflix is convenient for people so viewers would rather watch a full series in a few days then wait weeks. I believe that by Netflix offering full series of a show it keeps the series alive. Even if the series was old it can become more popular because of the people views on the Internet.
I do believe that Netflix is in competition with television. Personally I would rather watch TV shows at my own convenience than at a set time. If the show is offered on Netflix and people start watching it and then talking about the show it can also help the network. In my opinion Netflix is a positive and negative thing for television. It’s can be positive because you can become a fan of a new show and belong to a mini community. Its can be negative because people will start watching a show after the show is off the television. I believe in the future that Netflix is going to be a major player in television.
Works Cited
Gensler, Lauren. "Netflix Soars on Subscriber Growth." Forbes. 20 Jan. 2015. Web.
Fool, Motley. "5 Things Netflix, Inc. Management Wants You To Know." 27 Jan. 2015. 10 Feb. 2015.
Kirsten James
ReplyDeleteI completely agree that Netflix is a powerful source of entertainment that does not show any signs of slowing down. Netflix provides easy access to subscribers to binge watch shows that they may have missed while they were on the air or to discover new shows. It’s especially convenient for television lovers who have busy schedules and cannot commit to watching shows regularly every week. It may be easier for some to sit down on a holiday break and catch up on their favorite shows. Or for example, for college students who don’t necessarily get all of the channels that they would like in their dorms room to watch certain shows.
However, it does surprise me that Netflix is trying to compete with broadcast and cable networks because I think of them in two totally separate categories. Obviously Netflix does pose a certain threat to some networks because viewers may be less likely to watch the shows they provide if they don’t necessarily have to watch them when they air to watch them. But, it’s like you mentioned in your post, there are still factors that Netflix is missing such as not providing sports and news, that would be required to take over broadcast and cable networks. If Netflix wants to focus on competition, I would think they would focus on other Internet services like Hulu for example because Netflix benefits from the “growing acceptance of Internet video […]” (The Motley Fool). People are increasingly depending more on online entertainment television so I would think that other Internet streaming services would be a bigger focus before tackling broadcast and cable television.
Netflix and Hulu both have benefits and downfalls. While it’s clear that Netflix is more convenient to watch shows because there is no interruption by the various advertisements like Hulu has, there is original content, and a larger variety of programs to watch, there are still areas that they are the weaker option. For me personally, it’s easier for me to pick up my laptop and watch a show without any fee or login necessary then log in to a Netflix account and watch it that way. Additionally, Hulu does let you watch certain shows for free, and “Netflix raised the price of its default package by $1 for new subscribers last year, while letting existing subscribers keep the old $7.99/month rate for two years” (The Motley Fool). Hulu has it’s Hulu Plus option which you have to pay for to watch certain episodes of television shows if you do not want to wait until it is accessible for free. Lastly, Netflix does plan to show early premieres of movies such as The Interview, (Gensler) which puts them at another advantage in the Internet video streaming business.
My point is that I feel like Netflix should stick to their main goals (entertainment) instead of trying to compete with cable and broadcast networks. After all, “the company saw 4.33 million subscribers sign up in the fourth quarter, beating its forecast of 4 million new subscribers and bringing its total number of subscribers to 57.4 million worldwide” (Gensler). They must be doing something right already. If Netflix wants to advance it’s growth, they should first tackle the “content wars” that are currently taking place with companies such as HBO and Amazon (Gensler) that are realizing the Internet entertainment online streaming industry is a very wise investment.
Works Cited
Gensler, Lauren. "Netflix Soars on Subscriber Growth." Forbes. 20 Jan. 2015. Web. 9 February 2015.
"5 Things Netflix, Inc. Management Wants You to Know." The Motley Fool. 27 Jan. 2015. Web. 9 February 2015.
Colten Lucas
ReplyDeleteAs an on-demand Internet streaming media provider, Netflix has come a long way over the past few years. This service gives people a greater selection of viewing options than television and the added bonus of no commercial interruptions. Consequently, Netflix’s popularity has had a huge impact on television, especially cable television. However, though Netflix has caused a decrease in cable television subscriptions, it still needs some changes to completely replace television as a source of viewing entertainment.
In 2014, Netflix saw a great increase in subscribers, and this growth is expected to keep continuing: “Netflix added more new subscribers than it expected in the fourth quarter, aided by a growing international user base…The company saw 4.33 million subscribers sign up in the fourth quarter, beating its forecast of 4 million new subscribers and bringing its total number of subscribers to 57.4 million worldwide. In the current [first] quarter it expects to add 4 million more subscribers for a total of 61.4 million worldwide” (Gensler). One factor which helps Netflix’s popularity is that at about $8.99 per month, it is much cheaper than cable, which can cost over $100 per month. Another benefit of Netflix is that it can be streamed on many different devices. Also, the company has made a technological update to enhance subscribers’ viewing by providing them with the option of streaming Ultra HD content, which raises the monthly subscription price by $3/month. Since Ultra HD TVs are expensive, “Netflix expects customers who buy these TVs to pay a few extra dollars for Netflix to access 4K content. Over time, this trend should lift the average subscription price higher, independent of any broad-based price increases” (Fool). Thus, Netflix will continue to succeed with this increased revenue.
While Netflix streaming subscriptions have soared and caused cable subscriptions to decline, Netflix still has some limitations when compared to television. For one, it does not offer all of the same programming that is offered on cable television. Shows created for premium cable networks such as HBO and Showtime are not available via Netflix streaming. As a result, people will still continue to subscribe to cable to view this programming. Another limitation of Netflix versus cable is the lag between when a program initially airs on television and when it is available on Netflix. For example, it takes several months for popular shows like Mad Men and Breaking Bad to be available on Netflix once they have aired on the cable network AMC. Dedicated fans who want to see their favorite shows as soon as possible will continue to subscribe to cable to avoid this delay. By creating its own original programming such as House of Cards and Orange is the New Black to compete with cable television, Netflix has developed a way to keep itself current, since this programming can only be seen on Netflix and there is no lag. Still, unless Netflix offers all of the programming that television does and with no delay in air date, it is difficult to see the streaming provider causing television to become obsolete.
List of Works Cited
Gensler, Lauren. “Netflix Soars on Subscriber Growth.” Forbes. 20 Jan. 2015. Web.
8 Feb. 2015.
Levine-Weinberg, Adam. “5 Things Netflix, Inc. Management Wants You to Know.”
Fool.com. 27 Jan. 2015. Web. 8 Feb. 2015.
I agree completely that cable networks are being greatly impacted by Netflix. Cord cutting is a huge reason for this. With the ability to have these over the top services that are ever increasing, such as Netflix, roku, amazon, and hulu, allow viewers to watch tv with out the generic TV or satilite subscription that we are use to. This ability is not good for broadcast networks, making their services obsolete. Business insiders’s Jim Edwards explains that, according to Citi research there has only been negative ratings growth on broadcast and cable TV since 2011 (Edwards 1). I believe this is a direct correlation to the ability of cord cutters to watch tv programing on different devices and sources having the ability to watch tv. This ability isn’t only making it easier for people to watch their programing anywhere but it is at lesser of a cost compared to the cost of a broadcast network or satellite subscription making these technologies obsolete and bringing on a new era of cord cutters. This steady decrease of the use of satellite or broadcast subscription by chord cutters creates an ever growing issue for these companies. But there is a way they are starting to combat this cord cutting trend. If you cant beat the join them. Companies such as CBS have jumped on board and started to allow their programing to be streamed. This is a great way to keep up with the times and attempting to get usage of more than one market. This is good news for cord cutters because they can now get the same programing that would only be available to those who had satellite or other cable network plans. This is good for cord cutters because they are able to now watch live CBS programing along with time shifted programing. Chief executive of CBS, Leslie Moonvers says, “It is an important part of our future. Our job is to do the best content we can and let people enjoy it in whatever way they want. The world is heading in that direction” (Steel 1). This shows that cable networks are willing to move towards this new age of media intake and breaking into this cord cutting market. But CBS isn’t the only one attempting this type of streaming ability. Netflix, who has changed the game of streaming and media consumption, has joined with HBO. This is a huge breakthrough for the cord cutting community. HBO has always been only avalibe through satellite TV or cable networks. This has been a problem for those who did not have either of those. With HBO having content that is coveted and so highly rated only being able to be seen by those who had Cable network or satellite is finally available to the cord cutters. This has shown such a success it will most likely increase the number of other networks that were like HBO to join this streaming and cord cutting culture. This is starting to lead to the replacement of tv as we know it and will eventually lead to people having these over the top services and only purchasing what they want through these new devises and not have to be reliant on cable networks and satellite TV.
ReplyDeleteWorks Cited.
Edwards, J. (2013, November 24). TV Is Dying, And Here Are The Stats That Prove It. Retrieved February 7, 2015.
Steel, Emily. "Cord-Cutters Rejoice: CBS Joins Web Stream." New York Times. 16 Oct. 2014. Web.