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What 60 Million Netflix Subscribers Means for the Consumer

By on April 16, 2015

It’s tough to parse and gauge the success of a streaming service. The business and the industry are both too new, too far ahead of the regulatory oversight of our governing bodies to be tracked in any meaningful way. Netflix subscribers are fueling a new kind of product, and it’s growing.

When Netflix drops a number like 62 million subscribers, as they did this Wednesday, that’s in service to its shareholders, and of course colored in the most positive light possible. Despite the fact that in the same press release Netflix showed a slowing of net income compared to previous quarters (positive, nonetheless), the stocks bumped up significantly following the announcement. The shareholders are happy. Should you be? If you’re enjoying the recently debuted Daredevil show, then yes, you should.

Daredevil Netflix Subscribers

You should also be happy if you live in a part of the world where Netflix isn’t available. Yet. This is not a company yet stagnated on its own massive backside, but youthful in its desire to upend expectations still. (blame Turn for the obtuse writing).Growth, for Netflix, is two things: content and globalization.

The following is drawn from Netflix’s official releases regarding 2015’s first financial quarter.

Netflix on Original Content: “Our original content strategy is playing out as we hoped, driving lots of viewing in an economic way for Netflix while bolstering the positive perception of our brand and service around the world…We are increasingly spending on the promotion of our original content rather than emphasizing attributes of the Netflix brand and service that are now more familiar to consumers. Early tests in international markets suggest this content focus is aiding member acquisition.”

Netflix on International Growth: “Our international segment was fueled by continued strong growth across our 50+ countries as well as a successful March 24 launch in Australia and New Zealand, which adds about 8 million broadband households to our addressable market.”

And those are the least dry quotes I dug up. The bottom line is the original content, from House of Cards and Orange is the New Black to the recently debuted Bloodline and Unbreakable Kimmy Schmidt, is rapidly changing Netflix’s image and basic nature in the market, indeed bolstered by the company’s own deliberation as much as the consensus of the critics. Overseas, especially, has the original content enabled Netflix to reach a wider audience, coinciding with the company’s push for worldwide domination in the market.

Dr. Evil

At the base of it, Netflix subscribers can simply expect more. More new shows and movies in more places. Mentioned specifically in the release are Sense8, a sci-fi offereing from the Wakowski siblings, Grace and Frankie with Jane Fonda and Lily Tomlin and a handful of original films spanning genres in a way that no other content provider seems to want to match. Netflix’s greatest consumer-facing strength is just that – there’s something for everyone. (And especially Marvel fans, who like throwing cash at pixels. The four-show deal between Marvel and Netflix is only just beginning)

It’s worth noting that Netflix is trying to downplay HBO as a rising competitor to its unique brand, despite the fact that HBO is one of the few companies simultaneously offering original and licensed content under a standalone monthly fee, thanks to the introduction of HBO Now.

Netflix on HBO: “As we have said in the past, Netflix and HBO are not substitutes for one another given differing content. We think both will continue to be successful in the marketplace, as illustrated by the fact that HBO has continued to grow globally and domestically as we have rapidly grown over the past 5 years.”

Though the two services do offer different content (not different types or content), which makes their competition distinct from that between cable providers, what they’re competing over is time in the day, same as Sony and Microsoft do for the video game slot. And time is something Netflix knows how to drain.

To say that I haven’t been tracking the doings of Netflix in the last couple of months would be a falsity for the pure sake of literary obscurity. Indeed, as I watch AMC’s Turn through Netflix, I’m not only reminded of how, day in and out, I’m reliant on the streaming service for background noise, but also how ingrained it is in my regular routine. Instead of peaking at the providing of content created by others, as it did a time ago, Netflix has maintained relevancy and excitement regarding its product through consistent growth in more than just numbers, but in ideas and ambition.

 

 

About Trevor Ruben

Though I contribute to many online publications on a regular basis, including The Checkout, the crux of my writing lies in video games. When not writing, I'm often streaming a variety of games on Twitch.