M:\Resources\A Level\Media Factsheets
112 Netflix Factsheet
- Netflix, Inc. is an American based company providing on-demand Internet streaming media to North and South America, Scandinavia, the Caribbean and UK & Ireland. In the United States they also provide a DVD-by-mail service much like LOVEFilm in the UK. The company was established in 1997, and began their DVD-distributions in 1999
- They were not launched in the UK as a service until 2012, although awareness of the brand grew as a result of their success in streaming original programming and support of independent film distribution. They describe their institution as “the world’s leading internet television network” and much of their development has impacted audience consumption of television.
- VOD is the acronym used for video on demand. This simply refers to the on demand streaming of moving image texts. On-demand streaming media involves a constant transmission of data via the internet. This data is constantly being presented to the end user (the audience member) and the data is available for immediate playback, rather than as a file download. The process offers much faster consumption of data, as long as the internet connection speed is strong. When streaming, applications can display the data before the entire file has downloaded, increasing consumption speed for the user.
- 2000 – Netflix launches their personalised recommendation system that uses the ratings of existing Netflix users to predict choices for all Netflix users.
- 2002 – Netflix makes initial public offering on the Nasdaq.
- 2006 – Netflix launches the Netflix Prize, pledging $1 million to the first person or team who can reach certain accuracy goals in recommending films based on personal preferences. The company releases 100 million anonymous film ratings ranging from one to five stars, the largest such data set ever released.
- 2010 – The Netflix Prize is discontinued due to privacy concerns linked to the data that was released.
- 2012 – Netflix launches in the United Kingdom, Ireland and the Nordics.
- October 2012 - Netflix wins first Primetime Emmy Engineering Award.
- February 2013 - Netflix original series House of Cards launches.
- September 2013 - House of Cards wins three Primetime Emmy Awards
- October 2013 - Netflix now has over 40 million members globally
- Like Northern Europe’s LOVEFilm, Netflix requires users to subscribe to the service via the company website. The user pays a monthly fee, and can then stream unlimited films and TV programmes instantly. Netflix offer the streaming across a range of devices, including TVs and tablets. Netflix also allows users to log into multiple devices, meaning that login details can be shared within family or friendship groups. Netflix also encourages users to rate the programmes and films they stream, enabling Netflix to make recommendations to the user
- The streaming market is increasingly competitive, as the technologies used to stream VoD become ubiquitous within society. DVD rental shops have lost their market share, with many going into administration (Blockbusters being a notable recent case). Alongside Netflix, users have various options including LOVEFilm, Amazon Instant Streaming, NOW TV (Sky TV’s offering), as well as the more independent Mubu and Curzon On Demand. Netflix seeks to maintain its popularity with subscribers through increased personalisation.
- Previously, Netflix relied upon the user ratings to enable personalised recommendations for the subscriber. However, the algorithms used to generate these recommendations did not take into consideration that one login is likely to be used by a wide ranging audience of differing tastes, ages and interests. For example, within a family household one login may be used to stream Disney-animations for the 8 year child, romantic comedies for the teenage daughter, and House of Cards for the parents. This has resulted in various entertaining recommendations (now catalogued by Twitter feed @BadNetflixRecs). This will enable the institution to make more informed choices about films and TV programmes to offer. “The way we’re using that data is to keep [subscribers] happy. And the way to keep [subscribers] happy is to let them watch more stuff,” (Todd Yellin, Netflix).
- Netflix has just introduced a free profile system, where users can create up to five profiles on one subscription. The intention is to offer greater individual personalisation rather than the household personalisation that the previous system offered. Personalisation is a key element to the success of Netflix, as they need to keep existing users happy as well as attract new users. According to Todd Yellin, Netflix’s vice president of product innovation, 75-80% of what users watch on Netflix comes from recommendations, as opposed to searched programmes. Offering audiences the increased personalisation offers the gratifications of personal identity and social interaction (Blumler & Katz), as users feel that they are able to tailor media schedules to their own tastes, while still participating in a viewing community through the rating and recommendations. The profiles will enable Netflix to gather more detailed information about its subscribers and their viewing habits.
- Netflix has also lead the way in developing VoD services through their acquisition of original content for distribution. This began with webisodes of the horror series Splatter (2009) which received mixed reviews for Joe Dante’s direction of Corey Feldman in the lead role of Jonny Splatter. From this point Netflix took a 3 year break, coming back with the Norwegian-American comedy-drama series, Lilyhammer, and crime series, The Ropes. The altered approach to content proved popular with audiences, and led to Netflix licensing the rights to House of Cards in 2012.
- House of Cards, whose entire first season of 13 episodes, premiered on 1 February 2013, is a political episodic drama starring Kevin Spacey, with David Fincher (The Social Network, 2010) directing. The credentials of this partnership enabled Netflix to establish their brand as a leading on-demand television network. The series was exclusively available on Netflix, encouraging audiences to subscribe. The move away from the traditional model of on-demand streaming, and the episodic nature of the programme established audience loyalty that was more predictable than previously experienced. Netflix purchased the rights initially to 26 full episodes prior to production commencing, and the deal was rumoured to be $100 million. This sum is not alien to traditional institutions when producing TV dramas – ITV1’s Downton Abbey cost £1m per episode, a cost which was recouped through advertising revenues. However, it is important to note the distinct difference in the distribution model of Netflix, as opposed to other institutions that utilise on-demand streaming.
- Following the success of House of Cards, Netflix have developed and replicated the model; Hemlock Grove is a horror thriller which premiered 19 April 2013, with all 13 episodes being immediately available to watch online. The genre of horror thriller engages the audiences’ desire to resolve the enigmas, so they are likely to watch 2 or 3 episodes at once. Here again we see the increase in audience loyalty to the Netflix brand.
- Future of Television? Netflix have established a new and secure model for on-demand internet streaming of television products. Netflix have made it known that they are keen to develop their own content rather than bulk-buying in existing content; current contracts with Nickelodeon and MTV do not look as if they will be renewed. The bulk of British television on-demand is focused on catch-up, although there have been some forays into online exclusive premieres – namely Bad Education and Some Girls, both BBC3 – and the comedy Impractical Jokers was commissioned by BBC3 following an online pilot. In this way, it may seem as if on-demand streaming may offer an extension to the viewing experience, as opposed to its immediate death.
164 Television Drama Factsheet
- With BBC 3’s move to an online only platform, and the rise in the popularity of streaming services such as Netflix and Amazon Prime, the form
- and content of the serial drama is likely to evolve further. As audiences consume content in different ways serial dramas may become more
- diverse and targeted toward niche groups. Online programme makers are starting to create more short form content, leading to drama serials
- that run for much less than 60, or even, 30 minutes. Interactivity is a key feature on non-scripted programming, but how far might it play a part
- in serialized drama?
No comments:
Post a Comment