- Netflix takes the lead in the streaming market with a 10% annual rise.
- Netflix’s popularity skyrockets right after producing originals.
- Netflix dethroned HBO in the number of Emmy nominations.
- Netflix’s quarterly revenue rose nearly eightfold since 2011.
In an age where cable networks and streaming content providers strive by all possible means for a higher number of eyeballs, Netflix gains competitors each day. But the case for Netflix seems to be unusual; despite all the worldwide rivals, Netflix prevails in the throne, year after year in terms of global subscriptions.
According to Forbes magazine, in an article mentioning the “Netflix Effect,” it grows its subscribers roughly 10% a year, with around 60 million subscribers by 2019 in the US alone. Being a clear leader globally, Netflix reached a wider audience by penetrating Western Europe.
Investopedia researchers affirm that non-English-speaking countries, such as Italy, France, or Spain, represent between 55percent and 64 percent of Netflix’s subscribers.
The aforementioned Forbes article states that users are no longer drawn by the TV and limited to sit through commercials. Instead of paying for cable plans, a growing number of people worldwide are cutting the wire and preferring streaming services. Consumers like the flexibility of being able to watch what they want when they want to.
Netflix: An Overview
Netflix is one of the most significant contributors to the cord-cutting marvel. This is when spectators drop traditional cable network TV in favor of an alternative—typically streaming services. This event helps Netflix smash its competition for one simple reason: the quality-price phenomenon.
Netflix is available to users through its App for pc, mobile phones, smart TVs, game consoles, and streaming media players. The company had approximately 183 million paid subscribers worldwide in the first quarter of 2020. This represents a year-over-year (YOY) subscription growth of 22.8%. Netflix predictions point to continued membership growth in the second quarter and third quarter of 2020, with the company forecasting an increase of 25.6%.
The Rise of Netflix Into Popularity
Netflix has impressive revenues, year after year, with harsh growth from 2011 to 2019, illustrated below by a Statista chart. Netflix’s quarterly revenue rose more nearly eightfold since 2011; it has more than doubled since 2017.
Having started as a DVD rental service in 1998, Gone are the days when Netflix was a rival to Blockbuster Video. The 2000s were fruitful for the streaming giant, but after 2010, the company reached the lead and never stopped. With the introduction of Netflix on PS3, Xbox360, and Apple devices, the company boomed. Thus, the algorithm that helps steer users towards content more related to their tastes marked a generation—researchers from the research company MarketWatch point to the algorithm initiative as the beginning of great success.
Despite being banned in North Korea, Syria, China (mainland), and Crimea, the streaming service remains on the world’s top services. In 2012 another differentiator was born: Netflix started to produce original content. The TV series ‘Orange Is the New Black’ and the ’House of Cards’ is identified by experts as the main factor for the global Netflix trend.
Netflix is now understood as a heavyweight produced original series, with an impressive number of Emmys to its name. In 2018, Netflix was nominated for 112 Emmys—dethroning the 17-year leader and direct competitor HBO.
Since 2015’s Beasts of No Nation, Netflix Originals content also includes films. Indeed, Netflix gained some of the biggest and most highly-acclaimed films in the world in recent years. These include Oscar nominees such as Martin Scorsese’sScorsese’s The Irishman, Alfredo Cuaron’s Roma, and Noah Baumbach’s Marriage Story.
Indeed, Netflix earned more nominations than any other film studio at the 2020 Oscars. For 2021 the expectations are even higher according to the specialists, since the “Netflix Effect” gained weight during the COVID-19 pandemic.
Netflix: Future Revenues
As for the future of Netflix as a leader, there are no results yet. However, in eMarketer studies, it is estimated that the company’s revenues will not continue to grow at the level they have until now. The company expects revenues to remain or even decrease on a small scale until 2023.
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