That’s because Netflix is focused more on consumers rather than competitors, and it has anticipated this industry shift into streaming for some time.
“Our move into original programming was a bet that some of this stuff was going to happen,” he added.
It all began in April 1998, when Netflix started renting out DVD’s by mail.
Only a year later Netflix changed its pay-for-use model into a subscription model.
When software engineers Reed Hastings and Marc Rudolph founded Netflix in 1997, video rental stores dominated the home entertainment market.
Hastings was frustrated that the market was not customer-friendly, with charging the customers high fees for late returns as the culprit.They started with renting boxed products through a mail service nationally (in the US) and shifted to delivering on-demand entertainment catering to diverse needs globally.The ‘all you can eat subscription’ that Netflix offers, lets you watch your favorite shows anywhere and at any time you want.When Netflix launched, Blockbuster (a global chain of video stores where customers could go and rent videos in store) was their biggest competitor.It took Blockbuster years to start offering a similar service as Netflix was already doing.When you think about searching online, you think Google.When you think about colored sticky notes, you think Post-it.Netflix dominated the television industry in 2018 as the streaming service grew to more than 137 million subscribers worldwide, snapped up TV’s biggest creators like Ryan Murphy and Kenya Barris and prompted big media companies like AT&T and Disney to prep their own OTT offerings.It has even bigger plans for 2019, as chief content officer Ted Sarandos revealed at UBS’s 46th Annual Global Media and Communications Conference in New York today.As some third parties pull their content from Netflix to use on their own OTT platforms, the company has worked over the past seven years to make sure there is “a steady pipeline of great programming on Netflix, regardless of what happens in the rest of the world.” Netflix spent more than billion on original content this year, and Sarandos said he expects the company to shell out even more money going forward.Unlike broadcast and cable networks that target specific demos, “we are programming to every taste,” Sarandos said.