Netflix may have started out as the one and only streaming service, but, gradually, the field is becoming crowded. Although Netflix should be concerned about losing some viewers to other platforms, it is at no risk of falling from the number one position for a few reasons. In this article, I describe 3 reasons to show why Netflix is unbeatable.
Many of the most successful tech companies today think differently — about everything. About how to operate as a business, about how to solve problems, and about what they can bring to the table. A great example of a company that fits this description is Tesla. It is still considered close to impossible to start a new automotive company. This was only possible thanks to Elon Musk’s completely novel way of developing ideas and his belief that no problem is unsolvable. Netflix actually goes a step further.
Younger Generations Think Differently
Not only does Netflix function differently from traditional businesses, the company brings a new style of thinking to its content. In particular, this appeals to younger generations of users, who can relate to this new thinking style. These generations are highly self-confident and very proud of their own lifestyles. They don’t like to see superficials that talk down to their audience. Netflix produces movies and series which are more realistic and intriguing.
Take, for instance, Atypical. It is nothing like a classic TV show: it’s about real life. The real challenges the characters face are situations that everyone can relate to.
As another example, there’s Workin’ Moms. This series present female empowerment in a whole new way: women trying to balance motherhood with their careers and the raw realties of it. This show is certainly one of the best pictures of motherhood and marriage.
Finally, there’s The OA, a science-fiction series. When it comes to science fiction, it’s not necessary to enter the realm of the impossible — in fact, it’s often better to leave viewers with the hope (however small) that the story is possible. The OA does just that.
Netflix Had a Huge Head Start
If you were asked to name a tech company dominating its field due to a head start, there’s a good chance you’d say Google. Simply by developing its search engine first, Google has prevented competitors from even coming close to a threat. Even its name has become the verb for running an online search. Microsoft may once have been the all-powerful tech company, but releasing Bing so many years after Google meant that the search engine never stood a chance.
Netflix is exactly the same. The company practically created the concept of TV and movie streaming. Netflix then used its head start as an opportunity to develop algorithms that use data to identify users’ behaviors and then recommend content. This keeps viewers on the platform longer and stops them from seeking out other video streaming services.
Adding to this, Netflix is creating its own collection of content, therefore reducing its reliance on TV networks and film studios — which could always take their content to their own streaming platforms in the future. Plus, many of the series and movies Netflix produces rival those from traditional studios. Many have won (and many more have been nominated for) Golden Globes and Oscars, including Marriage Story, The Crown, Roma, and The Square.
It certainly helps that Netflix knows things like at what point people stop watching a show or movie, as well as what countries and communities watch which types of content. The company even knows what kinds of movies and series are popular on which days of the week and time of day. This all aids in the data-driven content creation process that causes Netflix to be unbeatable.
The Platform Is Aligned with Future Trends
One thing tech companies have shown us is that it’s necessary to adapt if you’re going to survive. For example, take Uber. When developing a business model, its founders identified three future trends: (a) the desire for a more flexible work schedule, (b) an increase in using smartphones for daily tasks, and (c) a move away from car ownership. Uber combined these 3 trends to create a service that everyone benefits from today.
In streaming, an important future trend is content democratization.
Communities worldwide want to create and distribute content that reflects their own cultures and lifestyles. Netflix is embracing this already by creating content in local studios. A perfect example is Money Heist, produced in Spain, that was a huge hit in all Spanish-speaking countries. Viewers enjoy watching TV series in their own languages.
In particular, though, it’s emerging economies who want to see more of their own movies. Netflix is making this possible both by hosting existing content and producing content in conjunction with local filmmakers. Netflix is unbeatable since it is aligned with future trends.
The Future of Netflix
New streaming services (think Disney Plus) will definitely mean that Netflix loses a portion of its US and global market. However, due to the company’s ability to connect with younger generations, its huge head start, and the forward-thinking style that keeps it up with future trends, Netflix always be unbeatable. No other streaming service can overtake Netflix in the foreseeable future.