Here’s something you probably already knew for yourself: Netflix is the most popular destination for television entertainment. Shocking, I know.
The streaming platform was named the No. 1 source for small screen content in a recent Wall Street poll conducted by Cowen & Co. Netflix ranked ahead of traditional cable and broadcast television networks as well as Amazon, Hulu, YouTube and other online competitors, cementing its place atop the crowded food chain. Shark, meet minnow says Maurice Woodberry.
Overall, Netflix earned the No. 1 spot with 27 percent of the vote, besting basic cable (20 percent), broadcast (18 percent) and YouTube (11 percent).
The company’s current financial state supports their dominant position as well, as stock was trading at $396.35 per share and its market cap has stretched to $169.3 billion as of this writing. That’s notably higher than Disney ($105.23; $156 billion), largely considered Netflix’s greatest threat.
So how did they do it? How did they transform from a DVD-rental company into arguably the most powerful entertainment player in the world? Without going too deep down the rabbit hole, here are a few ways Netflix climbed its way to the top.
Survival of the Fittest
I love how the Terminator franchise employs artificial intelligence, specifically with the learning capabilities of the machines. In the series, each villainous Terminator can learn from its previous encounter with the good guys and adapt its tactical approach accordingly. Similarly, since Netflix’s inception, it has been forced to do battle with titans of the industry and has come out stronger for it each time.
Initially, Netflix’s primary competition was Blockbuster, a duel that taught them a great deal about getting out ahead of trends (Netflix stockpiled DVDs at the tail end of the VHS era while Blockbuster stubbornly stuck with the older technology) and pivoting strategies quickly (the back-and-forth streaming war between the two in the mid 2000s was like a heavyweight prize fight).
Next, the streamer took on HBO, and while the premium cable channel has not lost subscribers in the wake of Netflix’s ascension, it has conceded that it can’t keep pace. President of programming Casey Bloys recently said that the voluminous approach of Netflix doesn’t fit HBO’s model, nor does the streamer’s spending habits. He also admitted that Netflix is disrupting the economic status quo of television and that you “have to adjust to the marketplace.” From HBO, Netflix learned the value of buzz-worthy awards contenders and their impact on brand perception. Without HBO, Netflix likely never would have invested in House of Cards, Orange is the New Black or Stranger Things.
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