Evolution of Netflix

The world was not always as technologically advanced as it is today. Not everything was…

The world was not always as technologically advanced as it is today. Not everything was available at the click of a button. Leisure activities like watching movies were considered a luxury.

The earliest form of media sharing at home were cassettes and VCRs. To watch a particular movie, you had to rent the cassette from a movie rental place. Today you can ดูหนังออนไลน์ใหม่ with a click of a button thanks to the internet and all its glory! While movie rentals have been around for ages, the most popular is no doubt Netflix.

The birth of Netflix

Netflix started out as a DVD rental company in the 90s. DVDs had yet to take over the market over cassettes are the prime mode of personal media sharing. When Netflix first started out, only a minimal percentage of households actually owned a DVD player.

The whole business plan was a gamble. Nobody knew if DVDs would actually gain popularity or not however this speculation soon showed its colours. DVDs overtook VCRs and Netflix rose to popularity. Netflix rented out movies through mail and aimed to defeat the existing exploitative nature of the movie rental market.

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Switch in business models

Netflix switched fast to a subscription service. This was a pioneer step as competitors got to this a significant time later. Netflix would rent out movies on a fixed montly subscription. This gave it a boost of popularity in the entertainment distribution market.

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The root of Netflix’s growth

Netflix didn’t grow simply because it was a new concept in a boring market with limited opportunities for growth. It grew because it directly addressed consumer’s needs and the shortcomings of the existing market in a practical way.

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The subscription service provided home service which was much more convenient than having to go to a movie rental place. Everything was delivered at home. This was also a good system for movie-lovers who made the most out of their subscriptions.

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The development into a streaming site further made things more convenient. It incorporated key technological aspects and allowed users to stream from a multitude of devices. The algorithm is also programmed to remember where you last left a video and sync it throughout devices.

Another key feature that satisfied consumer needs was the on demand availability of the streaming site. Anyone could access it whenever they wanted without having to wait for the mail to arrive with the movie. This breakthrough revolutionised movie rentals.

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