The Success Story of Netflix: How a Strong Business Strategy Changed the Game
You can’t have a conversation about the streaming industry without mentioning Netflix. This streaming giant is now a household name across the world. But, as with all success stories, it wasn’t an overnight success. It took years of hard work, strategic planning, and risk-taking to get to where they are today. In this article, we’ll investigate how a strong business strategy changed the game for Netflix.
The Beginning of Netflix
Netflix was founded in 1997 as a DVD rental-by-mail service. Their business model was simple, you could rent a movie on a DVD by mail for a specified period, and then return it without any late fees. The customer could even create a list of movies they wanted to watch, and Netflix would send them the next available DVD on their list. However, in 2007, the company pivoted their business model and introduced a new concept that would change the entertainment industry forever.
The Introduction of Streaming
In 2007, Netflix CEO, Reed Hastings, announced that Netflix would be introducing a streaming service. It was a risky move for the company, as it was a new and relatively untested technology at the time. The streaming service allowed users to instantly stream a wide selection of TV shows and movies from anywhere with an internet connection. This move allowed Netflix to differentiate themselves from other DVD rental services and offer something that no one else was.
Expansion Strategy
Netflix’s next strategic move was to invest heavily in content. They began to create their own content, from TV shows to movies, which was something that no other streaming platform was doing at the time. Moreover, they also started to acquire and license content from third-party producers. This move allowed Netflix to differentiate itself from the likes of Amazon Prime Video and Hulu, as they started to offer exclusive content, which in turn meant more users and higher revenue.
A new business model
Netflix’s business strategy of investing heavily in content paid off. In 2013, Netflix became the first streaming platform to win an Emmy award for original content, and in 2017, they won their first Oscar. It was clear that the company’s investments in content paid off. However, their biggest gamble was still to come. In 2015, they announced that they would be turning their focus towards producing original content. They took on huge loans to produce their own content, backed by the belief that quality content would be enough to keep their users subscribed. This bet turned out to be one of the biggest game-changers in the history of the entertainment industry.
Conclusion
In conclusion, Netflix’s success was not due to luck. Rather, they built a successful business strategy by introducing new technology, investing heavily in content, and taking on a risk by creating their own content. It’s safe to say that Netflix has completely changed the game for the streaming industry, and it’s not stopping anytime soon.
