key term - Netflix

Definition

Netflix is a streaming service that offers a wide variety of television shows, movies, documentaries, and original content to subscribers worldwide. It has transformed how viewers consume media, moving from traditional broadcasting to on-demand viewing through various internet-connected devices.

5 Must Know Facts For Your Next Test

1. Netflix started as a DVD rental service in 1997 before transitioning to streaming in 2007, which drastically changed its business model.
2. It has over 230 million subscribers globally, making it one of the largest streaming platforms in the world.
3. Netflix produces original content like 'Stranger Things' and 'The Crown,' which has contributed significantly to its popularity and brand identity.
4. The service is accessible on various devices, including Smart TVs, tablets, smartphones, and gaming consoles, allowing users to watch from anywhere.
5. Netflix employs algorithms to analyze viewing habits, which helps recommend personalized content and improve user engagement.

Review Questions

• How has Netflix influenced the viewing habits of audiences compared to traditional television?
  • Netflix has greatly changed how people watch TV by introducing on-demand viewing, allowing audiences to watch what they want, when they want. This flexibility contrasts with traditional television schedules where viewers had to tune in at specific times. The binge-watching culture created by Netflix's entire season releases further shifts viewer habits away from the weekly episodic format typical of traditional broadcasts.
• Discuss the impact of Netflix's original content on the television industry and its competitors.
  • Netflix's investment in original programming has reshaped the television landscape by raising the bar for quality and diversity in content. Shows like 'House of Cards' and 'The Witcher' have not only garnered critical acclaim but have also pushed competitors to enhance their offerings. This has led to a surge in original content across other streaming platforms as they strive to attract subscribers in an increasingly crowded market.
• Evaluate the challenges Netflix faces in terms of licensing rights and competition with other streaming services.
  • As Netflix continues to grow, it faces significant challenges regarding licensing rights for third-party content. With many networks launching their own streaming platforms, Netflix risks losing access to popular shows and movies that once drew subscribers. Additionally, the increasing number of competitors such as Disney+, HBO Max, and Amazon Prime Video complicates its position in the market, requiring Netflix to innovate continually while also managing rising production costs for original content.

Related terms

Streaming: The continuous transmission of audio or video files from a server to a client, allowing users to access content without downloading it.

SVOD (Subscription Video on Demand): A subscription-based model for accessing video content where users pay a recurring fee for unlimited access to a library of videos.

Content Licensing: The legal permission granted by content owners to others to use their intellectual property, crucial for streaming services in acquiring shows and films.