The future of Netflix


The future of Netflix is increasingly about original content creation. By itself this is not really big news considering the huge success of its series like House of Cards, Orange is the New Black or the brand new series called Narcos. However, Netflix does not create content in the same traditional way as for example HBO has been creating various TV series for more than four decades.

Some of HBO’s TV series were huge hits as The Wire or The Sopranos, which have basically created the benchmark for what a modern TV drama series must look like. Others were very costly flops just like the series called How to make it in America, which was cancelled after two years by the channel, because it just failed to make a large enough audience.

How come Netflix has not created yet a television series that was a huge flop? Their secret is that they have a massive amount of user data that is hard to imagine not just for us, but probably the even the people at HBO would be surprised as well. According to The Atlantic, last year Netflix had a shocking 76,897 individual categories of movies and it is safe to assume that this amount has not become smaller ever since.

Utilizing the user data advantage , they can serve the market better than anybody has ever done before. And that is just what subscribers want. According to an analysis that was carried out on the US market by Raymond James; almost one third of the subscribers in the US say that the main reason for having Netflix is the original content. Furthermore, more than 23% of the respondents stated that they actually use Netflix not in addition to watching TV, but as an actual substitute for network TV service.

However, according to Morgan Stanley’s analysts the huge success of Netflix’s original content does not come from its ability to gather and analyze previously unimaginable amount of user data. But rather form the fact the internet helped its original content to reach the global audience at a scale that has not been done before.

What’s your opinion on the matter? Do you think that user data analysis helps Netflix with their original content creation to an extent that they will never create unsuccessful TV series?

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References:

http://www.pastemagazine.com/blogs/lists/2015/05/the-best-hbo-series-of-all-time.html

http://uk.businessinsider.com/morgan-stanley-says-netflix-data-is-no-better-at-spotting-hits-than-other-networks-2015-10?r=US&IR=T

http://www.theatlantic.com/technology/archive/2014/01/how-netflix-reverse-engineered-hollywood/282679/

http://uk.businessinsider.com/netflix-subscribers-want-original-content-and-movies-2015-10?r=US&IR=T

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One response to “The future of Netflix”

  1. chloe chan says :

    In my opinion, user data analysis is a vital part for all their succesful series. The original content can only be made with help of the user data. However, i do think that in the future they will launch some ‘unpopular’ series, not saying that they will become a flop. But Netflix should also serve the tastes of niches, causing everyone on the market to have their own favorite series.

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