Netflix was born three times in 20 years, the first launch in 1997, when the company began offering movies on DVD and mailing them to customers. It was born again in 2007 after the launch of the online streaming service for movies and finally the birth of everyone who was heard and heard in 2016 by launching Netflix services worldwide and expanding services to more than 100 countries in one batch.
It was the real launch of Netflix when it switched and focused its services on launching movies online and making them available to customers, helped by the spread and development of internet speeds as well as people’s obsession with tablets and mobiles. This feature was a key factor in attracting customers and their conviction of the service, which the company reinforced by confirming that its content can be seen from anywhere and at any time, which is the opposite of what tv services in America depends on, which the customer is forced to pay for the cable for television to get the channels that Wake wants Its schedule is limited and linked to the channel’s presentation schedule.
In order to make it easier for the reader to track the company’s development and success in achieving its goals of increasing sales and increasing subscriber numbers, this article will examine the period between 2010 and the results of the second quarter of 2016. It is a rather long period and there have been changes and radical changes and decisions in the company’s career, so it will be studied in three stages to facilitate the reader in tracking events and knowing the impact of each period and its decisions on the company’s career. The first period will be for the period (2010-2012), then (2013-2015) and then in 2016 alone. The reasons for choosing this division will be explained later, although this division does not mean comparing the results between the three periods because the comparison will not be fair because of the difference in time between them as well as the different circumstances of the company during the duration of the analysis in this article. The aim here is only to study the impact of the company’s decisions on achieving its objectives financially and digitally. The company was working on two parallel lines to increase sales and profits, expanding services to more countries, increasing the number of subscribers and adding Netflix content that adds exclusive advantage to it and its followers.
The first phase (2010-2012) the company during this period was first launched outside the walls of America and this decision was very important in the spread of Netflix and entering new markets. The company launched the internet streaming service in America only and lasted for three years from the period (2007 -2009) and in 2010 the company expanded its services to add Canada. In 2011, the company expanded to add Latin American countries. Then in 2012 it expanded to add 5 European countries. These expansions alone added 13 million new subscribers to Netflix from 2010 to 2012, with a total of 33 million subscribers (6 million from outside America and 27 million from within America). This addition of followers and expansion in new countries did not add much value to corporate sales and continued sales in the range of $3 billion during this period. This, of course, reflects that the company’s geographical expansion alone will not serve the company and will not significantly support its profits.
The second stage (2013-2015) is the production of its own programs and the change in the format of the series show completely! In 2013, the company launched its famous series House of Cards and then orange is the new black, the company’s first real launch in producing its own programs before going into the following years 2014 and 2015. What did these two series add to Netflix within one year of their release? Sales increased to nearly $4.5 billion, a figure that the company had not previously seen with geographical expansion, and the number of subscribers during the entire first phase increased by 13 million. In 2013 alone, the number of subscribers increased by 10 million. A total of 44 million subscribers (33 million from America, 11 million from outside America). This year in particular shows the impact of the change in the thinking of Netflix based on series of its own production because in 2013 only one country was expanded and yet the number of subscribers increased by 10 million, which makes the belif that the strong influence of the increase of followers was from the two exclusive series that produced them specifically House of Cards has earned him a great international fame thanks to the plot of the story and the creation of roles by the series’ co-star.
During the remaining two years of this phase, Netflix launched new series in 2014 and 2015, most famously Marco Polo and Marvels Daredevil, Narcos, and also expanded again in 2014 and 2015 to add more than 10 European and East Asian countries. During these two years, the company merged its policy of geographical expansion with an exclusive production increase and had a significant positive impact, with the total number of subscribers increasing to 75 million in 2015 compared to 44 million in 2013. This means adding 31 million in just two years, a significant figure that the company has not achieved such a rate of increase in subscribers previously.
After the Netflix experience in the first phase of geographical expansion alone and then the exclusive production experience alone in 2013 and after the experience of merging the two in 2014 and 2015. Netflix’s appetite for re-experience 2014 and 2015 has opened up but bigger and bigger! This is the third phase of this article covering the first and second quarters of 2016. Netflix is determined to open up to the entire world almost by making its services available to more than 130 countries at once and promised its investors that it will launch a total of 600 hours during 2016 from the exclusive production of series on its network and at a rate of 45 minutes per episode as is customary in the episodes of the series, it means 800 new episodes. In just one year, these are all very large figures in theory that are supposed to jump the company, its profits and the number of its subscribers to higher levels than in previous stages.
The first quarter results were very positive in terms of the number of subscribers, with the number of subscribers jumping to about 7 million new subscribers to 82 million subscribers, 34 million of whom were from outside America. This increase in 3 months is twice the increase that Netflix had in the previous two years, as it was on average the addition of 1,200,000 subscribers per month, while in the first quarter the average monthly rate was 2,300,000 subscribers.
Netflix and its competitors?
Netflix’s reputation seems to be ahead of it, as they say, over the multiplicity of Competitors of Netflix, and we note that the majority sometimes do not know the names of the competitors of Netflix, which reflects Netflix’s dominance and overtaking the scene so far. In general, one of the most important names that offer similar services and very close to Netflix is Amazon veido and Hulu. In one of its reports to the company’s investors, Netflix said it had limited the top 200 films and series to the Netflix package and compared it to amazon and Hulu as a kind of comparison with competitors. I found that Amazon has only about 97 of the Top 200 names at Netflix. And Hulu is much less. This is a practical example of manipulating numbers to weight the opinion you want. Because the fair in this case would be if Netflix chose a list of the top 200 films from a neutral site according to viewers’ votes such as IMDB and then compared the number of names in its library with the rest of the competitors to the same list.
Netflix also presented a report showing its acquisition rate in America alone, based on the volume of data carried, with the ratio being around 35%, while Amazon 4% and Hulu 3%. After the recent global expansion of Netflix, it seems that the difference between them and competitors will increase or, at the very least, delay the time they need to reach the same spread that Netflix has done.
In the end Netflix succeeded a great success in producing exclusive series for her and was at a high level of quality and plot and performance the company’s fortunes would be very large if it continued to expand with its exclusive production of series which will pull the rug out of the control of traditional television in addition to that the company needs expansion In her thoughts of getting a live stream of world matches or major events around the world. Because Netflix’s exclusive production seems to have a more positive impact than geographical expansion alone. This analysis remains to measure the impact of expansion during the first and second quarters and it will be fair to issue an appendage analysis when Netflix announces its fiscal year 2016 report at the beginning of 2017 to compare the entire year with previous years.