Blockbuster
...the name was synonymous with home-entertainment until the late 2000s. In its best days, Blockbuster had over 9000 branches spread across the world out of which 30% of them were in the United States.
In September 2011, Blockbuster posted a tweet encouraging people to tell why they would leave a new competitor of theirs called Netflix. This new competitor, in addition to DVD rentals, also offered video streaming. They had used a hashtag #goodbyenetflix.
Today, Blockbuster is limited to just one store in Oregon. Their last tweet was in 2014 and it was about a 90% discount on the connection of their DVDs.
This Netflix-Blockbuster rivalry has become a classic case-study for even how a giant can collapse of they don’t stay in line with technology and customer-requirements.
A Few Flicks and Netflix
The sunsetting of Blockbuster has been attributed to the video-on-demand brand Netflix. The growth of Netflix is nothing short of astounding. It is a classic example of how adopting changes will lead to the success of great magnitude - something that their competitors did not bother doing.
Before we go on to study what made Netflix the giant that it is today, let's look at a few numbers that exemplify the success of this video streaming brand.
- Netflix accounted for 15% of the global upstream traffic in the year 2017.
- Netflix stands at a staggering income of 1.2 billion dollars in 2018.
- Netflix constantly stands among the top-rated applications in both mobile ecosystems.
- Netflix has more than 8.8 million subscribers and it can be considered the point of inflection when it comes to premium content subscriptions. The entire era of premium content subscription can be divided into the time before Netflix and after Netflix.
- Without question, Netflix is the top application when it comes to subscription video on demand (SVOD) applications.
All these numbers only imply that Netflix has seen unprecedented success. It has done to the video entertainment industry what Uber has done to the transportation market.
What are the reasons that contributed to the success of Netflix? What are the winning strategies that companies can adopt to script their own story of success... Or in the Netflix language, create their own originals? Let us read on to find out!
Changing with time
Netflix might be compared with Hotstar today but in its nascent status, it is constantly compared with Blockbuster. When Netflix started in 1997, it was also into DVD rentals. However, unlike blockbuster, Netflix started with video content on-demand through streaming in 2010.
This can be considered an important decision for a few reasons. The on-demand fad was getting up. The streaming speeds had increased globally, and there was also a need for global content. People are no longer confined by geography when it comes to consuming video content.
The way in which Netflix has changed the landscape is so evident that people all around the world are looking forward to creating Netflix-like applications or clones of Netflix.
Addressing the Needs of the User
It is to be remembered that it is the user who pays the money that translates into your revenue. On these lines, it is important to provide your users what exactly they are looking for. Market analysis is of vital importance. Netflix mastered the art of analyzing the market and creating content accordingly. This not only includes their plans to create a video streaming platform but also in creating Netflix originals.
Today, Netflix not only stands as a business of streaming but also as a business of creating their own content.
Go Universal
Video content is consumed by people belonging to all ages and all geographies. Therefore, it is important to have content that will cater to every user. Netflix has triumphed in the game of creating content for all kinds of users. It has video shows all across the world including but not limited to the United States, Canada, Europe, Korea, and India.
Another aspect where Universal access needs to be taken care of is in terms of pricing. The subscription model and the pricing of Netflix ensure that people belonging to different economic classes can afford to pay for the subscription.
The Conclusion or the Finale… Maybe!
Netflix has shown to the world that there is a huge business for Video on demand. There are a lot of streaming video providers who are sprouting in the market, and it still leaves space for new players to flourish. If you would like to create your own video streaming platform that replicates the success story of Netflix, all you need to do is get in touch with our team of expert Developers. They will take care to understand your requirements and create your own customized video streaming platform. After all, who will not want to replicate the success of Netflix with Netflix clone and script their own story of video on demand!