Written by Ivy Kolpon
Edited by Sam Eisen
In 2010, Netflix suffered a sharp membership drop when it decided to introduce Qwikster, a service that separated their DVD service and online streaming service. Two years later, it is safe to say Netflix managed to reverse much of the negative impact from Qwikster. The subscription based digital distribution service has just closed two deals with Time Warner and Disney. Netflix can now boast two more prestigious networks in an already extensive library, representing a significant coup for the streaming service. Netflix can expect a huge spike in the number of children using the service as Time Warner and Disney both produce a large number of animated shows and movies.
Not only has Netflix closed deals with new clients, the DVD-by-mail and streaming company has recently launched its own original programming content. With tough competitors such as HBO and Showtime refusing to makes deals with Netflix, the company needed to craft a new business plan. HBO and Showtime used to only show content provided by other companies. Only when these companies began producing original programming did the networks become popular. Netflix, like its competitors, believe original and exclusive content will be vital in retaining customers and further expanding the userbase.
As the number of Netflix viewers increases, what does this mean for traditional television networks? That depends precisely on which networks are being discussed. Some networks are seeing a decrease in ratings as viewers have switched to primarily watching Netflix or other streaming services. Other networks are seeing an increase in ratings as new viewers start to watch the latest episodes on TV after viewing older episodes of a particular show on Netflix.
While some networks are seeing an increase in their ratings, it should come as no surprise that network TV as we know it is disappearing. Almost everything is accessible online via computer, mobile phone, iPad, etc. The networks that have seen the most success in the last couple of years provide their customers flexibility, convenience, and original programming. Viewers want to be able to watch their shows when and where they want. HBO’s success stems from its originality and convenience. The network also manages HBO-GO, a service where viewers can watch their favorite HBO shows or movies on-demand via computer or iPad. Netflix already entertains and attracts consumers by offering hundreds of programs on demand. Entering into original programming should help Netflix retain and increase their customer base.
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