Netflix- Impact of Record Revenue

By: Lacey Worsham

Just a few days ago, Netflix’s third quarter earnings were reported. Not only did the company earn a record 2.15 billion in revenue, but they also added 3.6 million new subscribers. Netflix attributed this success to their new original content, Stranger Things, which is a success that makes perfect sense to anyone who has recently watched this show. Netflix’s original content is obviously a risk Netflix has taken, but also one that has paid off, as they have more business and creative control over the content. They certainly took a risk with Stranger Things because it required a large amount of cash upfront, but this show soared above and beyond general expectations created by past Netflix original content.

Stranger Things applies to all different types of viewers, as it contains aspects of science fiction, mystery, complex relationships, and even humor.  It takes a distinct turn away from original content that we have seen from Netflix in the past, and this is why I believe the show has achieved such high success. Instead of dealing with political or cultural issues, this show acts as a venue for escapism that draws viewers into a fictional and mysterious world. This reminds me of the sitcoms we discussed that were also a part of this escapism trend, because when viewers are exhausted from the oppression of complex issues within society, we desire to slip away into a world we cannot (and don’t have to) explain.

netflix-stranger-things-poster

As a result of Stranger Things, The Verge states that Netflix is planning to create 1,000 hours of original content in 2017, which is an amount that will double their programming from this year. This large amount of Netflix original content will have a major impact on regular television shows, as the more viewers Netflix gains, the less viewers television shows will have. It will be interesting to see how this new original content in 2017 will impact modern television.

Source:

http://www.theverge.com/2016/10/17/13305338/netflix-earnings-3rd-quarter-q3-2016

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6 Responses to Netflix- Impact of Record Revenue

  1. mediaphiles says:

    I think much of Netflix’s recent success have been due to their original content. I think one of the appeals of Netflix originals is that these shows are made for streaming. There are still obvious scenes, but not breaks for commercials, and the content feels for fluid. I LOVE Stranger Things and many other Netlfix original series, so I can’t wait to see what new content they create!
    -Sarah King

  2. mediaphiles says:

    In my own opinion, I think Netflix’s original content is either a hit or miss. I am obsessed with Stranger Things and House of Cards, and obviously Orange Is The New Black has been a hit. Other original shows I find a little pointless, but I know people that love them. Overall though, Netflix originals are a huge hit, and Stranger Things sets a new precedent for the directions that an original can go. – Andrew Guido

  3. mediaphiles says:

    Netflix is fundamentally changing the way we watch television. Original content aside, we not longer have patience for commercials or the week long wait until the next episode. Many people, myself included, are willing to wait until a season of a show is posted on Netflix in its entirety to avoid watching commercials. –Serena Daya

  4. mediaphiles says:

    Expanding on what Serena said, I wouldn’t be surprised if cable becomes a thing of the past before too long. Practically everything is already streamable online, most networks have a website or app where you can watch the shows if you missed them on TV, and as has been established, Netflix (and Hulu and Amazon, perhaps to lesser extents) have changed the way we watch shows and in essence made us less patient. I don’t pay for cable anymore myself, and I don’t think it will be too long before more and more people start dropping their cable subscriptions and start flocking to the internet for an a la carte approach to TV viewing where you subscribe to the networks you want to watch rather than purchasing an entire cable package.

    –Kevin Pabst

  5. mediaphiles says:

    I have never seen this show but I have heard from multiple people that it is worth the watch. After reading this article I feel even more inclined to watch it. I love shows that can adapt to the interest of multiple viewers. I had no idea the show was a Netflix original until reading this. I think its crazy that these new outlets are making more shows for us to watch that are exclusive to their viewers who are streaming.

    Alexandra Peralta

  6. mediaphiles says:

    So the whole “Stranger Things” phenomena has been interesting for me because I just didn’t enjoy it like everyone said I would! I usually love Netflix originals; I think they’re really well done and they offer the kind of content that you just can’t find on cable. But I wasn’t a fan of this one! I know this is an unpopular opinion– I think it’s probably because everyone hyped the show up SO MUCH that my expectations were really high. Plus, I’m not a huge 80’s movie buff, so a lot of the references throughout the series went completely over my head.

    -Callie Sartain

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