This is a great, in-depth look at the success of Netflix.
It gives a great breakdown of the success and challenges that Netflix has faced and unlike the legacy studios who seem stuck in the mould of re-telling old stories and being risk-adverse, the streamer has not shrunk from embracing new talent.
Remember the world before the Duffer brothers arrived, or when they took a punt on a locally known, but globally unknown director of the Squid Game?
Size is Important
“When Disney or Warner Bros. talks about “global strategy,” it’s an initiative layered on top of a fundamentally U.S.-centric model. But Netflix’s platform is global by default: one service, one product experience, 190+ countries. That structure creates a built-in bias toward content that can travel internationally.”
It seems that a global, well, let’s call it a confirmation bias for those looking for streaming services, in that we are likely influenced by the sheer content on the platform and its international, global access to content.
And here’s another advantage Netflix Has
“Because Netflix owns its network, the costs can be capitalised and amortised over years — turning what would be an expense for a rival into an asset. Disney, Warner, and even Amazon (which does not rely exclusively on its own CDN) write checks each month and call it Opex. Netflix can classify it as an investment; that accounting doesn’t just comply with Generally Accepted Accounting Practices (GAAP) — it strategically amplifies its perceived stability, profitability, and long-term value in the eyes of investors.”
Read on and please share your thoughts with us, below…
2 people like this
Netflix’s story is incredible, Geoff Hall! It went from being a DVD-by-mail movie rental service to a juggernaut streaming service in such a short time.