Quick and Agile Netflix 3.0
Netflix has become the best example of how to successfully challenge, and change the television industry. It has built its success with a content strategy that involves innovative original programming mixed with a much larger base of older network shows or “reruns”. In today’s dynamic business world, what marks success is your suppleness and agility more than anything else. You need to adapt fast, wasting no time, on the road to action. There are too many people going your way and you need to stay ahead of everybody else. Netflix is one such company that has proven itself to be one of the most adaptable media companies in history. Do you remember that Netflix started out doing mail-order DVD rentals, pivoted to a subscription streaming service for movies, pivoted again to a streaming service that mostly featured older episodes of TV shows, and then pivoted a fourth time to a network producing award-winning original programming? This capacity for remaking itself in mid-stream will prove valuable as Netflix faces these new challenges. So what are the challenges Netflix is faced with? And how is Netflix planning to cope with them?
First Challenge: Losing Out on Old Business from Networks
Netflix is facing two very serious challenges to its current dominance over OTT streaming, and its business may never be the same. The first challenge that Netflix is facing, the more immediate of the two, is that the networks from which Netflix has procured content rights for the past few years may no longer want to do business with them. The TV networks have come to realize that selling Netflix the rights to their older shows is no longer in their best interest. It made sense at first as Netflix was mostly buying up older seasons of shows that weren’t yet available for syndication and paying top dollar for them. This initially seemed to be a great deal for the networks, which were getting millions of dollars for episodes that would have otherwise sat on the shelf. Also, the success of shows like Breaking Bad and The Walking Dead proved that viewers who caught up with shows on Netflix would often start watching them live, thus bringing new traffic to the networks.