You’ve probably heard of these popular Netflix Original shows: “The Haunting of Hill House”, “Stranger Things”, and “Tiger King”. You’ve probably watched these shows as well and even liked them. So how did Netflix become so popular?
Netflix is a streaming website that allows you to stream your favourite shows or movies. The shows or movies are available with subtitles in multiple languages. You can stream them without any interruptions from ads. The live streaming app is available in 190 countries.
Netflix has risen in its worth to become one of the most popular and most used apps of 2020. It started out on August 29, 1997 in Scotts Valley, California, USA by Reed Hastings and Marc Randolph. Reed Hastings, the current CEO of Netflix, found the app for Blockbuster Fee. He had rented a DVD which he returned late causing him to pay a late fee which was $40. This incident embarrassed him but also inspired Hastings to create a service where people could watch as much as they liked without a late fee. Hence, Netflix launched its service in 1997.
Netflix was originally named “Kibble” by Marc Randolph. He used it on the legal documents and test sites but he changed the name after a while. And, to be honest, Netflix sounds way better.
It is ironic that in 2000, Netflix was available for purchase to Blockbuster, which was its main competitor at the time, for $50 million. But Blockbuster rejected the offer. By 2005, Netflix had around 4.5 million customers and by 2010 Blockbuster filed for bankruptcy whereas Netflix was worth more than $40 billion.
I, personally, love Netflix. Especially due to the pandemic, I have a lot of free time on my hands which is why I grab a snack and stream a movie or re-watch “Friends”. Along with me, there are a lot of other people around the world that enjoy spending their day watching Netflix because they’re quarantined in their homes. This has caused a rise in demand for the app.
Due to Covid-19, a lot of businesses have suffered. However, Netflix has made vast amounts of profits during the first quarter of the pandemic and is expected to earn more during the second quarter. Netflix had over 182 million paying subscribers in its first quarter and nearly 16 million are still signing in. (They added 15.77 million new subscribers in the first quarter). This will increase its stock price to over 65%.
The firm said that Covid-19 continues to accelerate the trend towards video streaming services and Netflix is a prime beneficiary of that trend. While that has been increasing, the company’s DVD section has been declining – that’s possibly because of the decline in the trend of renting and purchasing DVD’s. It’s just easier to stay home and press your play button to watch your desired show or movie.
The series, “Money Heist”, “Dead to Me”, and “13 Reasons Why” have attracted a huge audience. Revenues have been as high as $5.6 billion which exceeded analysts’ expectations. Netflix is yet to announce its second quarter earnings on 16th July 2020. Analysts expect a surge by 32% because of the firm subscriber base of the existing and new members that are still signing up.
Netflix is now worth $125 billion, that is a big deal considering it was available for sale in the start, at the mere price of $50 million. It’s safe to say that investing in Netflix would be very profitable, especially in current times because of the growth in the first quarter. Its stock is up 35% this year because of recent season releases in fan favourites like “Ozark” and “Elite”.
The company’s strategy is market penetration, which is why they have a high percentage of the market share. The 3 subscription plans allow them to reach a wider audience and satisfy their demands. Netflix Inc. is a multinational company, available in domestic and international markets, which is why it is a popular and growing trend. Netflix originals help boost the company’s popularity while also providing an increase to their value.
Furthermore, it’s safe to say that Netflix has a significant impact on our world today. The shows “Tiger King” and “Jeffrey Epstein Filthy Rich” caused two cold cases to re-open and be worked on again. Netflix breaks into the market by satisfying its consumers with the different genres available on the platform, and a lot of them are intriguing, for example, “Conversations with a Killer: The Ted Bundy Tapes” (the tapes have only been released on Netflix so far). These shows are an example of the special content available which sparks interest in the viewer. Alongside these, they have “Patriot Act” that comically highlights the different social issues in our world, “Friends” if you just want to watch something funny, “On my Block” which is a mystery, and many more genres to satisfy your taste.
This helps Netflix become a better platform as they constantly add new shows to develop the service and make it a popular app making them worth billions and increasing their value every day.
In conclusion, Netflix has the spotlight in the media sector for a few weeks because of their remarkable success this year. It’s an enjoyable way to spend your time with friends and family and it will be for a while, especially during the Covid-19 pandemic.
So well written!