Welcome to the blog of Dr. Lisa Burns' Media Studies senior capstone class (Section B) at Quinnipiac University. If you're looking for the latest on media industry trends and insightful media analysis, you've come to the right place.
Sunday, January 22, 2017
Media Convergence & Multiple Screens Blog 1, Question 2 (Jan. 31st)
How sustainable are the business models of SVOD services like Netflix,
Amazon, and Hulu? Limit: 8 responses
I believe the sustainability of SVOD business models are increasing, and will only take a huge hit if media experts and older professionals publically speak out and take a stand against it. Netflix was unique in the way it reached out to companies and shows to order a financially beneficial deal that would allow their content to be on demand. Going beyond just providing a space where favorite shows could be streamed at one’s own leisure, Netflix began making their own shows. Therefore, they were now curators and creators. It is clear that professionals and experts already see Netflix being a giant- or even a monopoly. The FX Networks chief likened Netflix to Google or Amazon- the big players in their respective industries. This is a reasonable comparison seeing as both Netflix and Amazon have opened their streaming services for the world (excluding China and conflict zones). They are going beyond the norm, and it may be intimidating how their irregular model seems to be working so well. John Landgraf expressed his worry over Netflix possibly being able to take over from 40-60% shares in storytelling. This fear is warranted, although I can see why Netflix would be unbothered with this accusation. We already have the Big 6 Media giants (GE, News Corp, Disney, Viacom, Time Warner, and CBS), and it is expected that the people/ companies at the top would not be open to new competition that can actually affect them. When looking at the billions that are made, it is clear that if Netflix were put into the list of the major media conglomerates, they would not even be at the bottom of the list. I then have to wonder: is Netflix trying to stray away from paying for streaming rights and focus on original series, or are they just strengthening their original model and increasing both the amount of streamed shows, and their originals. However, like Trevor Pryce said: “The first rule of Netflix: You do not talk about Netflix.” Like countless other influential companies, it is important that news and announcements are made on their time, and that secrets and trades are kept as private and secluded as possible.
These SVOD business models are becoming the ‘thing´ to do to remain competitive and relevant. HBO, BBC, and even Fox and ABC channels are now offering “bingeable” seasons of their programing for their users. People want to be able to watch their favorite shows on their time, and these streaming services provide that for them. Another way we are already adapting to these SVOD services is the new “Live+7” rating guide that is used to gauge the success of a show. Before, the views of the live show were what counted towards the popularity and likeability of a show. Now, the views are tracked live, and seven days after the viewing of said show. This is not a phrase that is going to disappear soon, in fact, I predict that it is going to become more accepted as common knowledge, and eventually end up live streaming on Netflix also.
References Jarvey, N. (2017, January 18). Netflix Reports Its Strongest Subscriber Growth in History. Retrieved from Hollywood Reporter: http://www.hollywoodreporter.com/news/netflix-blows-past-subscriber-growth-forecasts-4th-quarter-965629?utm_source=Sailthru&utm_medium=email&utm_campaign=THR%27s%20Today%20in%20Entertainment_now_2017-01-19%2007:01:37_ehayden&utm_term=hollywoodreporter_tie
Masters, K. (2016, September 14). The Netflix Backlash: Why Hollywood Fears a Content Monopoly. Retrieved from Hollywood Reporter: http://www.hollywoodreporter.com/features/netflix-backlash-why-hollywood-fears-928428
Roxborough, S., & Szalai, G. (2016, December 28). Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon. Retrieved from Hollywood Reporter: http://www.hollywoodreporter.com/news/2017-will-be-crunch-year-global-ambitions-netflix-amazon-958783
Media Trends and Forecasting, Section B class discussions
(2/2) Eventually Netflix may need an alliance because it is just not possible to keep up with the amount they are spending. If Netflix doesn’t spend the money, then they are pulling back from their advantage in the market. It is difficult to determine what will happen with Netflix in future years when they are predicting a decline in net subscriptions. They are not a long-term thinking company. With the rising players in the SVOD market they are going to need all the money they can get if they want to stay in the game. The one thing Netflix is good at is adapting to new environments so it is possible that they can continue to flourish (Masters).
There’s no doubt about the direction the media seems to be moving towards which is SVOD. Companies such as Netflix, Hulu, and Amazon are taking the world by storm one successful idea after another. 10 years ago, it would be uncommon to predict that we would make so much progress as far as online streaming goes, but now that it has risen so greatly in popularity, it is hard to imagine everyday life without these services.
Because media trends are constantly evolving, the success of a certain trend is hard to determine based on short terms. At the time video stores such as Blockbuster were all the rage, but have become nonexistent today. At the moment, streaming services are the present and future of media, but it is unclear for how long they will remain that way. SVOD services are a threat to traditional forms of consuming media such as television and film. Netflix has given television services a run for their money by creating new ideas to jump ahead of competitors.
The digital entertainment industry is fleeting and can take any turn for either a progressive or regressive future. Streaming services are just taking flight, but it is clear that this is just the beginning of the digital media era. What media is best for the economy today may completely shift tomorrow which is why it is so important to adapt and adjust to the changing media markets. It is going to take much failure in order to perfect success in todays demanding society and economy (Anderson).
Along with the rise of Netflix, Amazon and Hulu, comes the question of sustainability. 10 years in the future, these business models may be a part of history as an unsuccessful model, while today the vast majority of people in America and various other parts of the world benefit from what it has to offer. In order to expand these companies’ reach, global expansion is very important. “In January, Netflix took its online streaming service everywhere, except for China (and a few conflict zones, including Syria, the Crimea and North Korea). Amazon followed suit in December” (Roxborough 2016). Netflix is ahead of Amazon in various criteria, and Amazon seems to be using Netflix as a guide of success. Amazon is attempting to create a wider audience so they can find as many subscribers to keep the business flourishing.
Netflix is the most popular SVOD service growing from $1.2 billion to $6.8 billion in 8 years since it first launched in 2007 (Masters). It is expected that the media industry would expect such success from similar companies, which is why more and more businesses following this seemingly successful model are emerging and making their mark on the world.
Overall, I would claim that SVOD services are highly sustainable because of their early success in the industry. Many can argue that the companies will not have very long lived success because they have already made such an impact on the way we view the media today. SVOD is changing the way we look at the media in ways that we could have never thought imaginable, and I believe the media can benefit from such a high demand of this business model.
Works Cited
Anderson, Chris. "The Long Tail." Wired. Conde Nast, 1 Oct. 2004. Web.
Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. 14 Sept. 2016. Web.
Roxborough, Scott, and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon." The Hollywood Reporter. 28 Dec. 2016. Web.
I think that the sustainability of SVOD models like Netflix, Amazon, and Hulu are only going to have to play their cards right if they want to be around for a long time, for now things look like they are going to increase but in the future. Right now Netflix is currently being linked as a giant or even a monopoly, many people like John Landgraf are already comparing them to a company like google. If Netflix continues to grow like this then they clearly can have sustainability, where the problem lies is that Netflix has grown tremendously and with that growth comes change many shows that were drawn in by Netflix and the artistic creativity is starting to go away according to house of cards producer Dana Brunetti. (Masters, 2016) if Netflix starts to grow unpopular by these producers of their Netflix original series then I can see a huge problem with the sustainability of Netflix but if they manage to continue what they are doing and continue at their current growth rate then I feel that SVOD’s like Netflix, Amazon, and Hulu can survive for a very long time and become the new Hollywood. (Masters, 2016)
In addition, if you look at the growth of Netflix you can clearly see a line a sustainability for years to come currently by 2020 Netflix is projected to have 86 million subscribers and Amazon Prime to have 64 million based on IHS predictions. Those are very big numbers, not to mention that Netflix and Amazon are basically streaming around the entire world excluding China and parts of Syria, Crimea and North Korea. (Roxborugh and Szalai, 2016) The fact that those numbers are projected so high it is very hard to argue that SVOD’s does not have sustainability models. Not to mention all of the money each of these groups are investing in content for the next bit of upcoming years, Netflix has an estimated 1.2 billion budget for originals in 2016 and amazon spent about $337 million on their originals content for this year. (Roxborugh and Szalai, 2016)
This industry of SVOD is thriving and the people at the helm of these companies can either help it or hurt it, but some things like the economy can hurt it and that is out of anyone’s control, but from here it looks as if the age of SVOD’s is just starting out and only going to be stronger and become more powerful as the year’s ware on. (Anderson, 2004)
So overall I feel that SOVD models do have a strong sustainability future ahead of them and that thought the years they are only going to grow stronger and maybe even take over Hollywood one day and become the new Hollywood.
Work Cited The Long Tail. (2004, October 1). Retrieved January 31, 2017, from https://www.wired.com/2004/10/tail/?pg=1&%3Btopic=tail&%3Btopic_set
Roxborough , S., & Szalai, G. (2016, December 28). Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon. Retrieved January 31, 2017, from http://www.hollywoodreporter.com/news/2017-will-be-crunch-year-global-ambitions-netflix-amazon-958783v
Masters, K. (2016, September 14). The Netflix Backlash: Why Hollywood Fears a Content Monopoly. Retrieved January 31, 2017, from http://www.hollywoodreporter.com/features/netflix-backlash-why-hollywood-fears-928428
Subscription video on demand services (SVOD) have proven their sustainability as business models in recent years are more and more people are signing up for their unique service. Websites likes Netflix and Hulu used to be a place where people can watch shows and movies they might have missed during their airdates. In more recent years, as their popularity grew, giving them a bigger market, and an even bigger audience. Because of this, Netflix and other similar sites have been creating exclusive and original content that only can be watched by subscribers. By adding this exclusive content, their services have been becoming more and more desirable, increasing the want of people to subscribe. With all of the media attention these original shows have been getting, more and more people want to be “in the know” about these shows. Because of this and many other aspects, SVOD businesses have proven their level of sustainability
Ever since Netflix’s first original series, “House of Cards,” their chief content officer, Ted Sarendos has been keeping Netflix at the top of the competition. The question remains if Netflix has the ability to stay at the top as similar services are starting to catch on to the original content trend. Apple has also been rumored to have something similar in the making. As for the current situation, Netflix has proven to be a recent sustainable business model that plans on staying at the top of the competition by continuing to offer new original series, and other popular cable television shows.
Works Cited "Netflix Reports Its Strongest Subscriber Growth in History." The Hollywood Reporter. N.p., n.d. Web. 29 Jan. 2017. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. N.p., n.d. Web. 29 Jan. 2017.
Let’s look at the facts. By September 2016, Netflix was spending $6 billion per year on its programming. For which it has been awarded 54 Emmy nominations. The platform is available in 190 countries, with 47 million subscribers here in the US and 36 million outside the country, while broadcasting its content in 20 languages. In the last 4 years its original content has gone from 4 series, to what is projected to be 126 original series with a diverse range of content, ranging from documentary films, to scripted series, to films, to children’s shows. In 4 years, Netflix has gone from a small SVOD service, scoffed at by media executives, to a near monopoly in the entertainment business. Comparing only to the likes of Google, and Amazon in their respective industries. Netflix is now succeeding where others in the industry are not. With a combination of its original programming and other programming bought from other networks, it has a huge one-two punch factor that has drawn in millions of consumers by adding some original content to other content that the audience is much familiar with. The ability for consumers to control what they watch, and when they want to watch particular content has drawn the attention of millions and has caused a sort of exodus from traditional cable. This pull factor towards Netflix is only extended furthermore by the creation and implementation of original content. Subscribers now have a reason to stay subscribed in order to view the fresh new content.
I believe the sustainability of SVOD business models are increasing, and will only take a huge hit if media experts and older professionals publically speak out and take a stand against it. Netflix was unique in the way it reached out to companies and shows to order a financially beneficial deal that would allow their content to be on demand. Going beyond just providing a space where favorite shows could be streamed at one’s own leisure, Netflix began making their own shows. Therefore, they were now curators and creators.
ReplyDeleteIt is clear that professionals and experts already see Netflix being a giant- or even a monopoly. The FX Networks chief likened Netflix to Google or Amazon- the big players in their respective industries. This is a reasonable comparison seeing as both Netflix and Amazon have opened their streaming services for the world (excluding China and conflict zones). They are going beyond the norm, and it may be intimidating how their irregular model seems to be working so well. John Landgraf expressed his worry over Netflix possibly being able to take over from 40-60% shares in storytelling. This fear is warranted, although I can see why Netflix would be unbothered with this accusation. We already have the Big 6 Media giants (GE, News Corp, Disney, Viacom, Time Warner, and CBS), and it is expected that the people/ companies at the top would not be open to new competition that can actually affect them. When looking at the billions that are made, it is clear that if Netflix were put into the list of the major media conglomerates, they would not even be at the bottom of the list. I then have to wonder: is Netflix trying to stray away from paying for streaming rights and focus on original series, or are they just strengthening their original model and increasing both the amount of streamed shows, and their originals. However, like Trevor Pryce said: “The first rule of Netflix: You do not talk about Netflix.” Like countless other influential companies, it is important that news and announcements are made on their time, and that secrets and trades are kept as private and secluded as possible.
M Nyarko (2/2)
DeleteThese SVOD business models are becoming the ‘thing´ to do to remain competitive and relevant. HBO, BBC, and even Fox and ABC channels are now offering “bingeable” seasons of their programing for their users. People want to be able to watch their favorite shows on their time, and these streaming services provide that for them. Another way we are already adapting to these SVOD services is the new “Live+7” rating guide that is used to gauge the success of a show. Before, the views of the live show were what counted towards the popularity and likeability of a show. Now, the views are tracked live, and seven days after the viewing of said show. This is not a phrase that is going to disappear soon, in fact, I predict that it is going to become more accepted as common knowledge, and eventually end up live streaming on Netflix also.
References
Jarvey, N. (2017, January 18). Netflix Reports Its Strongest Subscriber Growth in History. Retrieved from Hollywood Reporter: http://www.hollywoodreporter.com/news/netflix-blows-past-subscriber-growth-forecasts-4th-quarter-965629?utm_source=Sailthru&utm_medium=email&utm_campaign=THR%27s%20Today%20in%20Entertainment_now_2017-01-19%2007:01:37_ehayden&utm_term=hollywoodreporter_tie
Masters, K. (2016, September 14). The Netflix Backlash: Why Hollywood Fears a Content Monopoly. Retrieved from Hollywood Reporter: http://www.hollywoodreporter.com/features/netflix-backlash-why-hollywood-fears-928428
Roxborough, S., & Szalai, G. (2016, December 28). Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon. Retrieved from Hollywood Reporter: http://www.hollywoodreporter.com/news/2017-will-be-crunch-year-global-ambitions-netflix-amazon-958783
Media Trends and Forecasting, Section B class discussions
Works Cited:
ReplyDeleteMasters, K. (2016, September 14). The Netflix Backlash: Why Hollywood Fears a Content Monopoly.
Nath, Trevir. "The Pros And Cons Of Hulu, Netflix, And Amazon Instant Video." Investopedia. N.p., 20 May 2016. Web. 30 Jan. 2017.
Roxborough, S., & Szalai, G. (2016, December 28). Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon.
(2/2)
ReplyDeleteEventually Netflix may need an alliance because it is just not possible to keep up with the amount they are spending. If Netflix doesn’t spend the money, then they are pulling back from their advantage in the market. It is difficult to determine what will happen with Netflix in future years when they are predicting a decline in net subscriptions. They are not a long-term thinking company. With the rising players in the SVOD market they are going to need all the money they can get if they want to stay in the game. The one thing Netflix is good at is adapting to new environments so it is possible that they can continue to flourish (Masters).
There’s no doubt about the direction the media seems to be moving towards which is SVOD. Companies such as Netflix, Hulu, and Amazon are taking the world by storm one successful idea after another. 10 years ago, it would be uncommon to predict that we would make so much progress as far as online streaming goes, but now that it has risen so greatly in popularity, it is hard to imagine everyday life without these services.
ReplyDeleteBecause media trends are constantly evolving, the success of a certain trend is hard to determine based on short terms. At the time video stores such as Blockbuster were all the rage, but have become nonexistent today. At the moment, streaming services are the present and future of media, but it is unclear for how long they will remain that way. SVOD services are a threat to traditional forms of consuming media such as television and film. Netflix has given television services a run for their money by creating new ideas to jump ahead of competitors.
The digital entertainment industry is fleeting and can take any turn for either a progressive or regressive future. Streaming services are just taking flight, but it is clear that this is just the beginning of the digital media era. What media is best for the economy today may completely shift tomorrow which is why it is so important to adapt and adjust to the changing media markets. It is going to take much failure in order to perfect success in todays demanding society and economy (Anderson).
Along with the rise of Netflix, Amazon and Hulu, comes the question of sustainability. 10 years in the future, these business models may be a part of history as an unsuccessful model, while today the vast majority of people in America and various other parts of the world benefit from what it has to offer. In order to expand these companies’ reach, global expansion is very important. “In January, Netflix took its online streaming service everywhere, except for China (and a few conflict zones, including Syria, the Crimea and North Korea). Amazon followed suit in December” (Roxborough 2016). Netflix is ahead of Amazon in various criteria, and Amazon seems to be using Netflix as a guide of success. Amazon is attempting to create a wider audience so they can find as many subscribers to keep the business flourishing.
DeleteNetflix is the most popular SVOD service growing from $1.2 billion to $6.8 billion in 8 years since it first launched in 2007 (Masters). It is expected that the media industry would expect such success from similar companies, which is why more and more businesses following this seemingly successful model are emerging and making their mark on the world.
Overall, I would claim that SVOD services are highly sustainable because of their early success in the industry. Many can argue that the companies will not have very long lived success because they have already made such an impact on the way we view the media today. SVOD is changing the way we look at the media in ways that we could have never thought imaginable, and I believe the media can benefit from such a high demand of this business model.
Works Cited
Anderson, Chris. "The Long Tail." Wired. Conde Nast, 1 Oct. 2004. Web.
Masters, Kim. "The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. 14 Sept. 2016. Web.
Roxborough, Scott, and Georg Szalai. "Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon." The Hollywood Reporter. 28 Dec. 2016. Web.
I think that the sustainability of SVOD models like Netflix, Amazon, and Hulu are only going to have to play their cards right if they want to be around for a long time, for now things look like they are going to increase but in the future. Right now Netflix is currently being linked as a giant or even a monopoly, many people like John Landgraf are already comparing them to a company like google. If Netflix continues to grow like this then they clearly can have sustainability, where the problem lies is that Netflix has grown tremendously and with that growth comes change many shows that were drawn in by Netflix and the artistic creativity is starting to go away according to house of cards producer Dana Brunetti. (Masters, 2016) if Netflix starts to grow unpopular by these producers of their Netflix original series then I can see a huge problem with the sustainability of Netflix but if they manage to continue what they are doing and continue at their current growth rate then I feel that SVOD’s like Netflix, Amazon, and Hulu can survive for a very long time and become the new Hollywood. (Masters, 2016)
ReplyDeleteIn addition, if you look at the growth of Netflix you can clearly see a line a sustainability for years to come currently by 2020 Netflix is projected to have 86 million subscribers and Amazon Prime to have 64 million based on IHS predictions. Those are very big numbers, not to mention that Netflix and Amazon are basically streaming around the entire world excluding China and parts of Syria, Crimea and North Korea. (Roxborugh and Szalai, 2016) The fact that those numbers are projected so high it is very hard to argue that SVOD’s does not have sustainability models. Not to mention all of the money each of these groups are investing in content for the next bit of upcoming years, Netflix has an estimated 1.2 billion budget for originals in 2016 and amazon spent about $337 million on their originals content for this year. (Roxborugh and Szalai, 2016)
This industry of SVOD is thriving and the people at the helm of these companies can either help it or hurt it, but some things like the economy can hurt it and that is out of anyone’s control, but from here it looks as if the age of SVOD’s is just starting out and only going to be stronger and become more powerful as the year’s ware on. (Anderson, 2004)
DeleteSo overall I feel that SOVD models do have a strong sustainability future ahead of them and that thought the years they are only going to grow stronger and maybe even take over Hollywood one day and become the new Hollywood.
Work Cited
The Long Tail. (2004, October 1). Retrieved January 31, 2017, from https://www.wired.com/2004/10/tail/?pg=1&%3Btopic=tail&%3Btopic_set
Roxborough , S., & Szalai, G. (2016, December 28). Why 2017 Will Be Crunch Year for the Global Ambitions of Netflix and Amazon. Retrieved January 31, 2017, from http://www.hollywoodreporter.com/news/2017-will-be-crunch-year-global-ambitions-netflix-amazon-958783v
Masters, K. (2016, September 14). The Netflix Backlash: Why Hollywood Fears a Content Monopoly. Retrieved January 31, 2017, from http://www.hollywoodreporter.com/features/netflix-backlash-why-hollywood-fears-928428
This comment has been removed by the author.
ReplyDeleteSubscription video on demand services (SVOD) have proven their sustainability as business models in recent years are more and more people are signing up for their unique service. Websites likes Netflix and Hulu used to be a place where people can watch shows and movies they might have missed during their airdates. In more recent years, as their popularity grew, giving them a bigger market, and an even bigger audience. Because of this, Netflix and other similar sites have been creating exclusive and original content that only can be watched by subscribers. By adding this exclusive content, their services have been becoming more and more desirable, increasing the want of people to subscribe. With all of the media attention these original shows have been getting, more and more people want to be “in the know” about these shows. Because of this and many other aspects, SVOD businesses have proven their level of sustainability
ReplyDeleteEver since Netflix’s first original series, “House of Cards,” their chief content officer, Ted Sarendos has been keeping Netflix at the top of the competition. The question remains if Netflix has the ability to stay at the top as similar services are starting to catch on to the original content trend. Apple has also been rumored to have something similar in the making. As for the current situation, Netflix has proven to be a recent sustainable business model that plans on staying at the top of the competition by continuing to offer new original series, and other popular cable television shows.
DeleteWorks Cited
"Netflix Reports Its Strongest Subscriber Growth in History." The Hollywood Reporter. N.p., n.d. Web. 29 Jan. 2017.
"The Netflix Backlash: Why Hollywood Fears a Content Monopoly." The Hollywood Reporter. N.p., n.d. Web. 29 Jan. 2017.
Let’s look at the facts. By September 2016, Netflix was spending $6 billion per year on its programming. For which it has been awarded 54 Emmy nominations. The platform is available in 190 countries, with 47 million subscribers here in the US and 36 million outside the country, while broadcasting its content in 20 languages. In the last 4 years its original content has gone from 4 series, to what is projected to be 126 original series with a diverse range of content, ranging from documentary films, to scripted series, to films, to children’s shows. In 4 years, Netflix has gone from a small SVOD service, scoffed at by media executives, to a near monopoly in the entertainment business. Comparing only to the likes of Google, and Amazon in their respective industries. Netflix is now succeeding where others in the industry are not.
ReplyDeleteWith a combination of its original programming and other programming bought from other networks, it has a huge one-two punch factor that has drawn in millions of consumers by adding some original content to other content that the audience is much familiar with. The ability for consumers to control what they watch, and when they want to watch particular content has drawn the attention of millions and has caused a sort of exodus from traditional cable. This pull factor towards Netflix is only extended furthermore by the creation and implementation of original content. Subscribers now have a reason to stay subscribed in order to view the fresh new content.