Netflix ushered in the age of streaming. That’s the case, even if Spotify and Co. were earlier in the music field. But the sometimes violent disruption of the film and television business led to new consumer habits that, despite increased competition, still make Netflix appear to be the original driver of a new media order.
The audience likes it despite the ever-increasing subscription fees: series continue to be watched in one go, and the streamer has largely stuck to putting entire seasons in the shop window. The latter was the company’s unique selling point, starting with “House Of Cards.” The desire to get everything at once is usually bad for business, which is why compartmentalization and scarcity have always been the methods of choice. Not so with Netflix. This was because the group invested intensively in its program in the first few years without any focus on profits. Growth was the strategy. Most people worldwide trust Netflix the most, just ahead of Amazon Prime Video and Disney+ – but no streaming service is canceled less often.
For years, Netflix’s strategy was to keep actual usage a secret. Tiles were created that depicted viewing habits and were intended to simulate top rankings in viewing behavior. But that was only the appearance of statistics and transparency. Now there is certainty every six months. This year it means that the first season of “The Night Agent” landed at number one among series with 812.1 hours of streaming, followed by “Ginny & Georgia” (Season 2, 665.1 hours) and “ The Glory” (Season 1, 622.8 hours). Striking: The proportion of series and films produced exclusively for Netflix is exceptionally high in the hit lists, amounting to almost 90 percent.
What do the Netflix numbers mean?
Netflix co-boss Ted Sarandos says that the numbers cannot be collected completely cleanly. Although they provide orientation, they are put into perspective by the fact that series have different running times and films are generally shorter. An at least understandable argument that the publication of usage figures actually offers little comparability. But they were kept secret for a long time, at least that’s what Netflix says so they can experiment.
In other words: The data collected from users is now so valid and so meaningful that they can now be used to make money with significantly greater transparency. With the emergence of more and more competition, the race for more corporate profits is on. Netflix has long been available with advertising in a cheaper subscription, and Amazon Prime and Co. have already followed suit. Excellent quality without advertising in the premium subscription has its price.
Many people want to know what their work is worth for Netflix
However, Netflix has not only voluntarily jumped on the bandwagon to offer its users more insight into the maps. According to sources involved in the negotiations with the numerous unions that recently put Hollywood on standby mode for weeks, many actors wanted more visibility of the success of their work. In order to then be able to negotiate better salaries. A new wave of financial demands is coming to Netflix as well as Hollywood, accompanied by the temptation to use artificial intelligence to create new consumption incentives and savings potential. You don’t have to be a prophet to guess that Netflix will produce more goods in the future, but that they will be produced more cost-effectively.
Despite these measures restricting production, Netflix publishes its usage figures with great self-confidence and with the certainty that it has implemented its sales model on the market, which has often been heavily criticized by producers, shareholders and other financiers.
“Netflix and Chill” is a popular code word among young people that means you can go into relaxation mode alone or together, optionally with a sexual accompaniment. But it also symbolizes: Netflix has become a synonym for aimless media consumption. It’s no longer about what you watch, but that you watch. Netflix has established itself for the home video market just as Microsoft once established itself as an entry ticket for home computers.