It's full credit to Netflix, that they're showing the way to TV broadcasters as to what can be achieved online. The latest release, 'Making a Murderer' is the most talked about show at the minute. And really, it's another stunner.
But it follows 'House of Cards', 'Orange is the new Black', the superb 'Narco' and of course, 'Breaking Bad'. Add to that, the ideal follow-upper to 'Making a Murderer' which is 'The Jinx'.
Whilst not all of these were 'made' or commissioned by Netflix ('The Jinx' is HBO), it is Netflix that's making the audiences by releasing the series same day and broadcasting with quality at a time that suits you. In fact, lending itself to that 'bingeing' (watching many programmes one after the other) which can't be done on traditional TV.
In fact, 'Netflix & Chill' has now become common parlance for a eh, good (?) night in.
Those that Netflix have made, they've thrown money at and have done so in a first class way. 'House of Cards' a real example of quality TV film making.
So their audience just keeps growing.
Given that CEO Reed Hastings, who takes his famed 6 weeks holiday and was "the most hated CEO" by the stock market 4 years ago, it's been a pretty stunning achievement.
They simply deserve it all because they put the work in and make broadcasting rich entertainment again. Even making a real niche like Documentaries, cool again.
And if you haven't seen 'Making a Murderer' or 'The Jinx' just go and do it. 'Making a Murderer' takes one or two episodes to get going (it was filmed over 10 years) but then it's an incredible story.
Like Netflix.
Netflix, the video service online that everyone loves and loves to give out about, has powered on.
I blogged earlier this year (http://streamabout.blogspot.ie/2012/04/netflix-greatest-change-in-broadcasting.html) about how they planned/hoped to have an extra 7 million subscribers by end 2012. Numbers just announced show they've a staggering 30 million users in total already.
An increase of 10 million users in two years which given that their original DVD service waned because of online, it's a great credit to them. The US and Canada are the core drivers here but as Netflix expanded this year into 51 new countries, it has really worked.
CEO Reed Hastings (that's him above and who had his salary doubled in 2010, to 5 million usd) on his Facebook page said:
Thank you, thank you, thank you.
Thirty million of you are now Netflix streaming members.
I’d like to express my gratitude to each of you. Your choice to be a
Netflix member helps us get more content every year, and helps us
further improve our member experience. You make it possible for us to
offer the most amazing internet television experience ever. Thank you,
again. -Reed
Add to that Netflix has established itself very neatly in the connected TV market, this will mean that the company is destined to grow and grow.
An extraordinary story of new media and we know, that Netflix are commissioning programmes to be a player in the general TV market. We also know that they're very conscious of the need to improve their product - a self criticism that marks out a great business.
People always talk about investors looking for "the new Facebook".
Stop.
Here it is.
The growth of Netflix since 1997, the online movie/tv streaming site, has been quite extraordinary with a forecast of 30 million members by year end (Sky has 10 million). But as predicted, they've now ventured into the area of programme buying, competing directly with traditional broadcasters.
Something we've talked about before here http://streamabout.blogspot.ie/2012/07/netflix-stream-one-billion-hours-in.html
This is the first move for an online broadcaster into the offline world. In particular, they're going to hurt BSkyB.
BSkyB's stranglehold on premium rights to Hollywood movies is going to be broken as Netflix CEO Reed Hastings (that's his picture on top) has vowed that Netflix is going to heavily bid for those rights - and they have the cash.
He is determined to win. Already earlier in the year, BSkyB had to suffer a 40% increase in UK football rights following a bid war with BT. The Sunday Telegraph has seen BSkyB documents which clearly identify Netflix as a major potential threat.
NetFlix has just announced today that already it has 1 million users in Ireland and the UK and with movie rights, it will switch customers away from BSkyB.
The Telegraph quotes Hastings as saying, "The main rival is BSkyB with Sky Movies and Sky Atlantic - they're the ones with the big content".
The key here too is that Netflix can offer a movie streaming service at a much lower cost than Sky as well as being available on a myriad of devices.
"Sky is terrified of Netflix" a source close to the company has said. And so they should be....as the company turnover increases to 1.8 billion usd in the first half of 2012. Whilst its share price is declining, this is on the back of lower profits driven by the insatiable desire to launch worldwide and therefore, the costs of doing so. Hastings has always said that he's in the long term game.
Netflix is ploughing back its profits into a drive for world domination. Although Hasting's own encashment of 43m usd in shares was viewed poorly by the markets and is being legally challenged. He's also a small investor in Facebook and a Director at Microsoft.
There is no doubt, having dispensed with the retailers of old video rental, Hastings is now going after traditional TV. Online streaming is coming of age and will become the dominant way of the future to watch movies. Especially as devices such as Apple TV, arrive on the market.
And good luck to them.
Online goes from strength to strength.
Do you still doubt it?
