Netflix was established in 1997 to rent and sell DVDs by mail. Just select the disk on the site – and they send it to you home. Later, the company introduced a monthly subscription for an unlimited number of DVD rentals.
By 2006, the company already had 5 million regular customers. And in 2007, Netflix introduced its online cinema, which forever changed the film industry.
Not so long ago, in 2016, the company entered the market in 190 countries. And according to information at the end of 2019, the number of subscribers amounted to 167 million people. Netflix movies 2019 have several American Academy awards and a huge number of Emmy awards.
Of course, such a success could not go unnoticed. Large (and not so) companies began to create their services, and recently they appear almost at the speed of sound. The loudest in recent years was the launch of Apple TV +, Disney +, and the announcement of HBO Max and Peacock from NBCUniversal. They and Amazon Prime Video are now called the main competitors of Netflix. But are they?
But not huge investments make Netflix an unattainable player in the market of streaming services. There are main factors that have ensured this.
- Netflix CEO Reed Hastings has repeatedly stated that they are primarily an IT company. What does this mean for the user? That everything will work as it should.
- In terms of video quality, sound, stability, the usability of the interface, the company has gone far ahead. And in every direction, there is constant work: the development of new compression algorithms, Netflix login, updating sound codecs, improving the interface, introducing new functions.
- The main feature of Netflix is a recommendation system using artificial intelligence. Her first sketches existed even when the company was engaged in rental discs. Based on the browsing history, retention, impressions of what was watched (you can put a Like or Dislike at the end), the service recommends the content and writes how much percent this or that movie or series is right for you.
Netflix has nothing but content today. They do not earn on the sale of devices, goods, or advertising. The client pays for the content and receives the content.
Amazon, for example, has a different goal. The main objective of the Amazon Prime Video service is to keep you on the Amazon website for as long as possible, and during this time, using the target, sell you the goods. Amazon doesn’t sell content — a company buys your time and attention for content. And you pay for it.
This does not mean that their content is bad. It’s just that it was created not as an end product, but as bait. And this may be different.
Netflix had a time advantage, and they took great advantage of it. They practically created the market for online cinemas and, for several years, have been setting the direction for it.