Netflix’s success is built on a dynamic approach, pivoting from DVD rentals to streaming, then moving into original content. The company’s strategy is to become the definitive home of entertainment, a goal it is achieving by investing heavily in original programming. Netflix’s spending on content is expected to reach $5bn in 2016, more than double HBO’s budget. This approach has led to a rapid increase in subscriptions, with over 81 million subscribers worldwide.
Netflix’s success has not gone unnoticed, with Amazon and Hulu investing in their own original content. Traditional broadcasters are also fighting back, refusing to license their shows to Netflix in an attempt to slow its growth. This has led to an increased emphasis on Netflix’s original content, which now makes up over 600 hours of programming.
Despite this success, Netflix is facing significant challenges. The company’s international expansion has been slower than expected, and it is struggling to turn a profit in many markets. In addition, the cost of producing original content is high, and there is no guarantee that every show will be a success. Netflix’s future depends on its ability to continue producing hit shows and attracting new subscribers, all while navigating a rapidly changing media landscape.
Go to source article: http://www.nytimes.com/2016/06/19/magazine/can-netflix-survive-in-the-new-world-it-created.html?smid=tw-share&_r=1