Business model Netflix, video store, VOD services, VOD market, blockbusters video, digital age, social value, series, movies on television, innovations, audiovisual content, Amazon, subscription, streaming
The story goes that after having to pay late penalties at a Blockbuster video store, Reed Hastings (CEO of Netflix) had the idea to launch a similar service, but rather to offer it as a subscription package. Netflix was launched in 1997 by Reed Hastings and Marc Randolph. At the time, it was an online DVD rental and purchase service that was delivered to your home, except for a new form of subscription. With this monthly subscription, customers rented as many DVDs as they wanted by mail order.
[...] Netflix knows what its subscribers are watching and when, and this allows it to tailor its offering accordingly and deliver audiovisual content directly to customers that meet their expectations. The production of original content: thanks to the collection of data from its own customers, Netflix has embarked on the production of its own content, and in particular "Orange Is the New Black" and "The Crown" were born high-quality successes corresponding to customer expectations. Binge-watching, a technique that involves watching several episodes of a series at once. The little extra of Netflix? [...]
[...] The objective for Netflix is to offer a service that must be available when subscribers want it, at a fixed price for viewing unlimited content, hence the expression “All you can eat model”. D. What is business value? In the digital age, Hastings knows that it must adapt its business model to meet the future expectations of its increasingly demanding customers and stakeholders in their consumption. It, therefore, ends the rental of physical DVDs and uses video streaming technology instead. [...]
[...] And the competition? First of all, HBO, an American company that offers a pay-TV service that broadcasts audiovisual content, including series with original content. It, therefore, produces and broadcasts both series like “Games of Throne”. HBO has several subsidiaries like HBO Films. This company is established in several countries. Then there is Amazon with its Amazon Prime Video service. It is a major competitor which notably has a large number of subscribers. And it's not the only one on the market On the global market, the main competitors are therefore Amazon Prime, Hulu Plus and the streaming service of HBO. [...]
[...] Continue watching: this will recommend content based on what has previously been viewed by the customer, "taking into account the time elapsed since watching an episode or the point of abandoning the series . " There are many others, such as the "video to video similarity" algorithm, which will recommend audiovisual content to you because it is similar to what you normally watch. Either way, they have got it right: recommendation and customer experience are at the heart of the Netflix business model. [...]
[...] How is Netflix a revolution? It was back then that Netflix made a difference: DVD was still just a new medium that had appeared in the United States. Hollywood studios had just started to distribute movies on tapes. Reed Hastings decided then, at the right time, to take advantage of the emerging medium: the Web. Instead of focusing on DVD rental, they set up a streaming platform to view unlimited content adaptable on all media: game consoles, computers, tablet, smartphone, TV, etc. [...]
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