Netflix is a Streaming Company. They sell online subscriptions worldwide. Netflix not only buy movies from the makers to list on its streaming website, but also owns a production house. Netflix started as a DVD rental business in 1997, when the Internet streaming wasn’t developed. They mailed the DVD’s to customer’s address. These were based on monthly subscription concept, where a flat-fee would provide unlimited rentals including shipping and handling fees.
Why Netflix suffered losses in DVD Rentals?
Netflix pre-rental model suffered huge losses due to competition from Amazon and Randolph. During the dot-com bubble crash, Netflix suffered huge losses. With effects of the dot-com collapse, the company fired its 50% employees. The company cancelled it’s IPO launch and continued the Rental Business.
Gradually, DVD players became a very popular and its subscription service were booming. Finally, NETFLIX INC (NFLX) went public and listed it’s IPO in NASDAQ, USA Sharemarket. Next, Netflix applied for patent in U.S. to cover its service and name as a Trademark. Over the time, Netflix became profitable and blockbuster hit in DVD rental service in USA.
The Rise of Netflix:
With rising Internet boom, Netflix finally became a media streaming service which moved its dvd business to on demand video streaming website. It started offering limited number of films online as compared to offline dvd business. Gradually, Netflix upgraded all its offline users to online viewers by offering no additional cost to unlimited streaming online.
Netflix’s popularity and growing users base was now expanded to other countries too. Netflix started acquiring movie rights from Production Houses and Film Makers. They signed deals with Warner Bros, Disney, Paramount Pictures, Lionsgate, etc.. So, the user base of netflix was not only a single country but all over the globe.
Today, Netflix also run’s its own production house. Since COVID-19, Netflix shares were breaking highs in the market, with online users bases jumped to 45% more. Netflix is mainly known for Criticism for hosting taboo topics, controversial movies, tv shows, etc. This itself is a free marketing for netflix’s business model. Netflix also faced issues from Governments and Agencies for allowing HD & 4K content to users in 2020, because a large base of customers were consuming content and Internet Bandwidth, Energy Consumption was affected to due limited resources. Thus, Netflix took steps to downgrade content quality in order to reduce traffic.
The Halt of Netflix:
In 2020, Movie Threatres were affected with almost no business for 1-2 years due to lockdowns and public places restrictions, all over the world. Netflix was crossing borders to serve the content at the ease of home, without having to open any physical threatre. But gradually, as the restrictions and vaccinations were completed, the world was standing to normal and Netflix media streams were loosing traffic.
But that only wasn’t the main reason, but the subscription prices. When you compare netflix with other streaming companies, Netflix is the costliest streaming service in the globe. Netflix kept loosing its customer base and had to compromise on its prices. Netflix started offering lower quality streaming focusing on mobile devices with reduced pricing with single streaming at a time. Some people says, Netflix is pushing newer content without checking if it’s being liked or not by the users. The balance of brilliant work is now falling into rubbish category. Some people complained, the quality is not that great when compared with Disney+/PrimeVideo pricing. One of the major reason also is that, Netflix was offering free trials earlier which was now stopped all over countries except few ones.
Netflix Games:
Netflix has launched it’s own Gaming Studio for developing games. From owning movie rights to developing games of the movie niche. Netflix is basically experimenting in games category. The reason could be serving ads. Currently, games are free to play on Netflix but they don’t really want to market this news. Netflix is currently serving only 1% of its user base for gameplay. Netflix’s Team is studing the human behaviour on the games before they launch full fledge.
Netflix as acquired many game developers, opened new positions related to gaming in their company. Netflix is acquiring gaming startups and don’t want people to know yet. Since their studio team is experimenting they are quickly reaching out to developers and rushing to hire.
Netflix’s major rivals are TikTok, Epic Games, Youtube, etc. Netflix wants to make a service that keeps their audience addictive and coming back on daily basis. Netflix is majorly trying to build a cloud gaming service that is similar to Google’s Stadia. Right now, People don’t know or haven’t shown any interest in Netflix’s Decision but Future will tell if this will be a success or a complete Flop decision.