From Streaming TV to the Oscars: How Netflix Disrupted the Entertainment Industry (2024)

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From Streaming TV to the Oscars: How Netflix Disrupted the Entertainment Industry? ›

Media expert Brian Rose explores how Netflix, with an ever-increasing budget of over $15 billion per year, service to 190 countries, and 150 million subscribers, is primed to become the dominant source of leisure time entertainment throughout the world.

Streaming services have revolutionized content production by investing heavily in original programming. Companies like Netflix and Amazon Prime Video have produced high-quality series and films that rival traditional Hollywood productions, often taking creative risks that conventional studios might avoid.

1 By creating compelling original programming, analyzing its user data to serve subscribers better, and above all, letting people consume content in the ways they prefer, Netflix disrupted the television industry and forced cable companies to change the way they do business.

Without the TV schedules that cable companies used to air TV shows and movies, viewers could watch their favorite shows at will without having to worry about recording ahead of time. This led to the streaming service industry being valued at $554.33 billion in 2023, with 2024's revenue expected to hit $43 billion.

2007–12: Streaming

Netflix partnered with makers of video game consoles, Blu-ray players, and other electronics to enable video streaming on those devices. Netflix introduced a streaming-only plan by 2010 and that same year introduced an app for iPhones (the app became available on some Android devices by 2011).

By offering a vast library of content that users could access anytime and anywhere, Netflix disrupted the traditional cinema experience, which relied on physical theaters and scheduled screenings. Original Content: Netflix invested heavily in producing original content, including movies and TV series.

With more and more people choosing to view films and television shows online, the number of people going to movie theaters has dropped, leading to a decline in box office sales. Television networks are also losing audience numbers as more consumers get entertainment via streaming services.

Netflix, established in 1997 by Reed Hastings and Marc Randolph, initially emerged as an online DVD rental service. This innovative approach shifted from the use of VHS tapes to DVDs, a more advanced and long-lasting technology, facilitating DVD delivery by mail and obviating the need to physically visit rental stores.

Expert-Verified Answer

DVD Rental by Mail: In 1997, Netflix started as an online DVD rental service, offering a large selection of movies delivered directly to customers' homes. This innovation provided convenience and eliminated the need for physical rental stores.

Netflix was the most popular streaming service in the world for quite a few years. Netflix has blamed their subscribers loss on competition with other companies. A lot of companies, such as Disney and NBC, created their own streaming services, which drew a lot of attention away from Netflix.

What is the current status of Netflix in the streaming industry? ›

Netflix's position as the leader in the streaming service market is undeniable, with a remarkable total of 260.28 million subscribers worldwide.

Thanks to its sheer variety and number of new things to watch, Netflix also gives you the most bang for your buck. Due to its features, user-friendliness, and robust, variety-filled catalog, Netflix won an Editors' Choice Award for 2023, a distinction previously earned in 2021 and 2022.

Social Impact

Research from the 2019 Consumer OTT Report found that people spend more time watching OTT content than they do driving a car or talking to friends and family (Salkowitz, 2019). This sheer amount spent watching video content could lead to diminishing social skills and less human connections.

From its start as a DVD-by-mail rental service, Netflix has systematically changed the rules of the media business. Its introduction of streaming in 2007 led to the decline of such video rental stores as Blockbusters and dramatically increased the use of broadband internet.

To conclude, Netflix changed the way we watch our series and movies. It caused a decrease in cinema visitors for smaller productions and directly put pressure on these films' DVD sales, pay-per-view buys and pay-tv licensing rights fees, causing studios to shift their films to the biggest streaming platform: Netflix.

After Netflix sends the video to your internet provider, it goes through their network to get to your home. If their network is too slow or has issues, it can affect your video quality or cause issues with your Netflix experience. If the road is clear, your internet provider will send the video directly to your screen.

It has changed the way that entertainment is viewed, consumed and also the way in which it's received. Many years ago, entertainment was primarily enjoyed in real time and live. Now, we are able to watch things live and also watch replays of entertainment thanks to the provision of the internet.

As streaming services become more popular, they have emptied the pockets of users. They simultaneously limit the access to news channels and ultimately warp the way our society takes in media, news and entertainment. We settle for what we believe is the cheaper and a more instantaneous option.

Technology has also made entertainment more personalized and interactive. Algorithms recommend content based on our preferences, ensuring we find entertainment tailored to our tastes. Video games have become increasingly immersive with advancements in graphics and virtual reality.

Many streaming platforms, including Roku and Hulu, offer self-serve advertising options that allow brands to create and target their own ad campaigns. This gives advertisers more control over their campaigns and allows them to reach specific audiences in a brand-safe way.