Netflix has long been the biggest fish in the pond of at-home entertainment, to the point where it’s a cultural staple. But as other companies tapped into the market, many consumers have wondered if it’s spelling the end of Netflix. Now, a few months removed from the launch of their biggest competitor, Disney+, it seems like that’s not the case. Netflix is still posting high stock numbers and did not take a huge hit as predicted.
Why is Netflix still relevant?
The secret to their success is that Netflix has a history of adapting their product and services. This has allowed them to navigate not just the introduction of high-quality competitors, but other substantial factors, such as technological advances, the changing structure of entertainment, and economical downfalls. And this ability to evolve with the market has led them to staying ahead of the curve again as new competitors threaten to make Netflix irrelevant.
Recognizing what appeals to consumers is key.
At the start of Netflix, they simply were curating content produced by other studios and networks. But as studios and networks realized that they could make money by being in control of their own movies and series, it’s resulted in this streaming war that Netflix has been in the center of. The biggest threat came when NBC announced that is was not going to renew their contract with Netflix and take back their shows, The Office and Parks and Rec, in order to put them on their own streaming platform, Peacock. To the consumers and stockholders, this spelled the beginning of the end. The Office and Parks and Rec were the two top-streamed shows of Netflix, so losing them seemed to be the nails in the coffin. And at the same time, other platforms had been catching up to Netflix in terms of user interface and high-quality library. Other things also threatened the streaming service, such as Youtube becoming a mainstay in people’s lives and altering what kind of content consumers like to view.
Instead of leaning into curating other content, Netflix started to dabble in alternative ways to stay relevant. It began with the first exclusive series created by Netflix, House of Cards. Due to the success they found there, they began exploring the viability of producing the majority of the content they provide, instead of relying heavily on renting out content from other networks and studios. As shows like Orange Is The New Black and Stranger Things became widely popular, this became the clear way Netflix could hold their own in the streaming war.
Other platforms once again took note of Netflix’s success and started producing their own exclusive content, but that won’t threaten Netflix in the same degree that losing content did. That’s because Netflix has changed their position from being a content curator to a content creator. This pivot is going to keep them afloat. As long as they keep producing the high-quality content that they have been, they will keep consumers interested.
The big lesson from Netflix.
Netflix has a lesson to teach other brands, no matter what size or industry. Change can be a good thing, but only if it’s for a good reason. When building a brand, consistency is key. You have to establish what promise you offer to your audience. If you keep changing what you do or what you offer, then consumers don’t know what to expect. This will lead them to other businesses that have more stability. But as Netflix has proven, if the change in your product or services is done to address the need of your audience, then you can maintain success in a crowded market.
