Every since the company started in 1999, Netflix has maintained
a vision towards redefining how we consume our media. Netflix CEO Reed Hastings
spoke about timing and opportunities back in 2011 during an interview with Fortune Magazine. He understood when he first founded Netflix that technology would eventually
support a connection for live stream. So he first developed a DVD rental
company to establish brand recognition and precedence. Hastings stated that the
turning point happened in 2005 with the rise of online viewing platforms such
as YouTube and Netflix. Streaming quality improved over the years and Netflix has not taken a step off
the gas pedal since.
The key strategy for Netflix has always been developing good
relationship with content providers. The success of the original DVD service is
what catapulted Netflix’s success with online stream subscriptions in the first place. They
established such a great reputation with their content providers that they were
able to sign major contracts to secure exclusive licensing deals for streaming
movies and TV shows online. Netflix has built an impressive portfolio including
exclusive licensing deals with Disney, DreamWorks Animation, and Marvel nearly
quadrupling their stock just last year in 2013.
It was Netflix CEO Reed Hasting’s supreme sense for timing
and technology improvements that helped the company get started, while
continually preparing themselves for their instant streaming business model. Over the past
decade Netflix has encountered several stumbling blocks, including their
ongoing debate regarding the monthly subscription cost. In 2011 Netflix
separated the DVD and streaming services which infuriated many of their monthly
subscribers, including myself. After Netflix lost many of their original subscriptions they refocused their
attention towards creating original content.
Netflix has been known for being partners with content
providers. Netflix would normally obtain the rights to license use and stream a
variety of movies and Television shows. This process would result in Netflix
releasing year old TV series, and limited Blockbuster films. That was the moment when Netflix
decided to take a step out of the box. Since unleashing their recently celebrated
original series House of Cards, and Orange Is the New Black. Both of which are brilliant. They have
transformed Netflix into a direct competitor with many of the most prestigious
cable channels offering high quality content.
Netflix burst onto the award scene last year for original
content receiving fourteen nominations for the 65th Annual Primetime EmmyAwards. Most of the nominations went to standout series House of Cards, which was nominated for Most Outstanding Drama,
with Kevin Spacey and Robin Wright also nominated for outstanding lead actor
and actress awards. Even though the cable channel giants such as HBO's Game of Thrones
received 16 nominations alone, which HBO getting 108 total. It’s safe to say
that Netflix is heading in the right direction, promising to both innovate and entertain.
