The Netflix Effect
60% of Americans choose to use Netflix as their streaming platform and it already has 148 million members worldwide. Netflix is a streaming platform that provides on-demand content and has become a model for the streaming industry in recent years by analyzing consumer data. Netflix recommends that consumers consume the content the way they want. The changes that the media industry has undergone based on Netflix’s footsteps are remarkable. This effect is called the Netflix Effect.
The Netflix effect does not mean a particular phenomenon, but rather the overall reaction from the media industry to Netflix’s achievements, such as following Netflix’s strategies and changes being made in the media industry because of Netflix. Since Netflix started offering unlimited streaming service based on a monthly subscription fee, almost all services started following that strategy. This also includes the era of original content in 2013.
Original content is considered to be the key to Netflix's success and has enhanced its reputation. Unlike TV networks and cable channels that choose series through pilot programs and determine the production of the series based on ratings, there was a distinct difference from the existing method of producing media content, such as being 100% pre-produced and no involvement in creative teams by Netflix. Therefore, Netflix was able to produce a series of themes that were not suitable to air like ‘Narcos’ and ‘The Crown’.
Since Netflix’s choices become the industry norm, rather than differentiating the service, the quality of the content has become important than ever.
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