How Netflix Became the Leader in Original Content
The industry of content creation has shifted significantly over the last two decades with ever-evolving consumer demands. Today’s viewers are constantly changing how they want to view videos, television shows, and other media forms, and companies have had to adapt quickly.
Media companies have taken great strides toward delivering new and innovative ways to enjoy entertainment, and Netflix has been among the most successful in this arena. The rise of the mobile device and smartphone has also played a part in how media giants have shifted paths. By 2019, more than 2.5B people are expected to use a digital device, which is a 10% increase from 2011. This trend has forced companies to keep up with the times and created an ancillary battle between media companies vying to deliver the most desirable content in the best way.
Original content that is developed, owned, and distributed by a specific media company, has become the differentiating factor among businesses in the industry. As the decline of traditional entertainment mediums continues, companies face new challenges in keeping viewers engaged.
Creating content that is proprietary is one way to compete in this industry, and there is no greater champion of the process than Netflix. Netflix, which launched in 1999 as a DVD home-delivery provider, now dominates the media sector because of its successful content development and distribution.
Consumers Favor Netflix by a Landslide
Netflix was one of the first streaming services for content – a move that positioned the company as a standout leader in the industry. Beginning in 2007 and continuing through today, Netflix’s streaming offerings took a bite out of the longstanding cable market. Other companies have offered the Netflix model of viewing to varying degrees of success, but none that has matched Netflix itself.
In a recent study conducted by LendEDU, more than 6.6K millennials were asked about their streaming activities. The results showed Netflix dominates the streaming service niche, despite a trend of some users avoiding establishing their own accounts and using friends’ or family members’ accounts instead.
Of all respondents, 84% said they would choose Netflix as their only streaming option if needed. In a distant second, HBO Go received 12% of the votes for top choice as the only streaming option, followed by Hulu with 4%.
This data indicates that, without a doubt, Netflix has an edge that many suggest correlates to the original content it is able to offer to viewers.
Viewers Appreciate Netflix’s Original Content
The rise of original content among streaming services like Netflix have enticed viewers to cancel their cable subscriptions. Consumers are indeed moving toward fully streaming services with original content. And Netflix has ruled the game when it comes to original content, making it the top choice for viewers.
The LendEDU poll revealed this penchant for Netflix as an original content provider. When asked which streaming service offers the best original programming, 79% of respondents said Netflix. Premium channels came in at a distant second with 14% of responses, followed by Hulu with 4%, and Amazon Prime with 3%.
Given these numbers, it is clear that the reason millennials choose Netflix as their go-to streaming service is linked closely to its availability of high-quality, engaging, and easily accessible original content.
How Did Netflix Become the Standout in Streaming and Original Content?
Several driving forces have set Netflix on its successful path to streaming and providing original content. First, the media giant is a clear leader in the number of originals it develops and distributes to its viewers. Other streaming services do not compare in terms of how many series, movies, or documentaries they develop internally. The content put out by Netflix is also deemed higher quality than its competitors.
Additionally, Netflix is known to use consumer data to drive original content ideas. Netflix is well-known for its originals, including highly anticipated series like House of Cards, Orange is the New Black, and Stranger Things. Viewers embrace the quality of the shows put out by Netflix as second to none.
Netflix does not simply come up with ideas for new series or movies spontaneously. It focuses in on what viewers are watching on its platform, using that data to decide what it will develop next. Also, Netflix has long been targeting the millennial audience with its streaming service and original content, but it has expanded its reach to older generations as well. With a target demographic of 18 to 49, Netflix knows its customers well, and its content caters to them.
Finally, Netflix shuns traditional advertising. Instead, it uses engaging trailers, simplistic digital ads and social media posts, and focused marketing to target its ideal viewer. Other streaming services have been slow to do the same despite Netflix’s success.
Although Netflix has remained a leader in content delivery through streaming, it may not stay on top forever. The company is well aware of its competitors like HBO Go, Hulu, and Amazon Prime, and a growing crop of others.
Newer streaming players are employing a variety of tactics to catch up with Netflix. Hulu, for instance, has shifted its marketing to target the same audience as Netflix, using humor and impressive trailers to entice new viewers and subscribers. It has several popular series like The Handmaid’s Tale. HBO Go has recently followed suit, pumping more content onto its streaming platform for a targeted younger audience. Amazon Prime is still trying to catch up with these leaders, but as it’s included in the $119 annual Prime membership, the price may be a sticking point for some viewers.
Overall, Netflix continues to reign supreme in original content among streaming service providers, but it will need to continue its impressive delivery of new, original media if it wants to continue to dominate the market.