Stranger Things could be the important step for Netflix

Have you ever watched Stranger Things on Netflix?

Stranger Things is the supernatural classics of the 1980s, telling the story of a young boy who vanishes into thin air. As friends, family and local police search for answers, they are drawn into an extraordinary mystery involving top-secret government experiments, terrifying supernatural forces, and one very strange little girl.’ (Netflix, 2016). This series is Netflix’s biggest hit this year. Undoubtedly, I am a fan of this series, and finished watching seasons 1 and 2, seeing all 17 episodes in two days. It sounds crazy, but it’s true. As a result of its popularity, Netflix plans to invest $8 billion in increasing production by releasing more anime series and original films in 2018 (The Verge, 2017).

Due to the success of the series, Chief of Content Ted Sarandos clarified that Netflix plans to spend $8 billion, expanding a library of original TV and film content by 50 per cent, by releasing 80 original films and 30 anime series in the coming year (Polygon, 2017). In this case, it shows that Netflix intends to increase content production on a global scale, with different markets for either non-North American or European-only audiences.

However, providing more original contents may also affect other film producers who provide movies on Netflix. Releasing more original films requires more space for promotion on its website. From my perspective, this raises a question regarding ethical issues: ‘Is Netflix exploiting others?’ This is because Netflix is likely to become a monopolist, controlling the market with this entertainment service. In the past, other companies’ films make a value, while Netflix made a profit, before it started to create its own contents. Nowadays, Netflix promotes original content by advertising its own productions before other contents, and in a bigger size, in order to draw the audience’s attention. Moreover, it uses big data, called ‘Netflix’s algorithms’: this is able to track every user’s browsing behaviour, in order to suggest the right product and adapt its marketing content to fit the user’s interests. But in fact, Netflix’s algorithms simply redeem relative films by using people as labour: comparing one user’s profit with other users. Thus, Netflix can manipulate users’ needs by suggesting only its own original programming. One must ask, is this fair for both customers and other content producers?

In reality, the impact of advanced technology is changing the way people communicate, as well as social trends. Thus, it is not surprising that a worldwide online distribution service such as Netflix is heavily investing in its marketing drives. Netflix’s mass-market aim is to capture as many subscribers as possible, of all ages and preferences. This is acceptable provided it does not prevent other film providers from promoting their content on Netflix, or result in other unfair activities. Consequently, the best solution for film providers is to constantly adapt to such changes, and improve themselves continuously, in order to keep up with the trends and survive in the digital age.

From the customers’ perspective, it provides benefits by offering more choices or giving greater power to buyers. In this situation, this creates higher intensity of competition among entertainment producers, in order to gain customer’s attention. Consequently, many producers place a greater emphasis on interesting content, stunning special effects, and casting actors.

Finally, it depends on the position you are in. So, the critical question concerns Netflix’s position in the next 2 or 3 years. Will it act as a monopoly in this field? Producers can experience real pressure, because everything can change suddenly. Today, Netflix plans to take 50 per cent of the marketplace, and perhaps it might announce a new goal of up to 80 or 90 per cent in the future. Thus, its competitors should always prepare and adjust themselves to those changes. From the opposite viewpoint, customers will benefit by being offered a variety of movies. For instance, as a Netflix member, I believe that Netflix will continue to offer good content, and I am waiting for the best series, such as Stranger Things.

References:

Netflix (2017). Stranger Things | Netflix Official Site. [online] Available at: https://www.netflix.com/watch/80077368?trackId=13752289&tctx=0%2C0%2C3d32102918654f2372e7cfb90df682c719954a4c%3A0cd322465a3718bb459ab58cc5f12a73434576fb [Accessed 1 Nov 2017].

Polygon (2017). Netflix working on 30 original anime series, 80 movies. [online] Available at: https://www.polygon.com/2017/10/16/16486304/netflix-anime-original-films [Accessed 1 Nov 2017].

The Verge (2017). Netflix plans to spend $8 billion to make its library 50 percent original by 2018. [online] Available at: https://www.theverge.com/2017/10/16/16486436/netflix-original-content-8-billion-dollars-anime-films [Accessed 1 Nov 2017].