In class we saw that Netflix was victorious in it’s rivalry over DVD rental businesses, most notably Blockbuster. Now, Netflix’s competition is focused on cable stations with their own streaming networks, such as HBO.
In previous years, HBO has consistently had more subscribers than Netflix, especially since HBO Go is the only method by which viewers can watch popular HBO original shows, such as Game of Thrones and Girls.
Despite HBO’s consistent subscribers, the number of Netflix users has grown exponentially. In fact, Netflix has just recently surpassed HBO’s 28.7 million subscribers.
What has contributed to Netflix’s growth over the past few years? Well, other than what was discussed in class, (data from software, the long tail, etc), Netflix has begun to make some recent changes to attract more customers. Netflix is constantly adding to its wealth of television shows and movies. Recently, a “Just for Kids” category was introduced to the Instant Queue, allowing children and adults alike to watch both old and new cartoons.
In response to the practice of sharing accounts, Netflix has offered a new package in order gain from this practice. The original $7.99/month subscription only allowed up to two simultaneous streams. The new $11.99 package allows up to four simultaneous streams on one account.
In addition to the hundreds of thousands of movies and television shows, Netflix has also released its own original series: ‘House of Cards’, ‘Hemlock Grove’ and ‘Arrested Development’. Less than 8,000 subscribers create accounts for the sole purpose of watching these original series, which means that these new shows bring in an influx of customers.
Although Netflix doesn’t have the capability to stream HBO shows, which allows HBO to maintain its consistent subscribers, Netflix has responded in such a way to create and maintain a fierce competition with successful cable networks.