Gone are the days of traditional television watching because today, everyone is switching to streaming services majorly because of the versatility of content and overall convenience that they offer. One such streaming service is Netflix, and we all have heard about it as a result of the increasing popularity of the platform and the top-notch content that it provides.
But if you are interested in knowing more than what you see on the platform, we highly recommend you read this write-up till the end and find out how the company has grown and whether it is still growing or not. From its ownership pattern to the viewership pattern, we are here to reveal all the facts and figures to help you understand the platform better. But first, let’s start with the basics.
What is Netflix?
Netflix is one of the most ingenious streaming services that can be accessed on a subscription basis. It is the world’s leading entertainment platform offering a variety of TV series, documentaries, and feature cinemas in numerous genres and even languages, for that matter. The platform produces and streams its own original content as well as other movies and series produced by different production houses.
A variety of packages are also available on Netflix, differing in prices and the number of screens. Now let’s look at the history of Netflix.
Who created Netflix?
This OOT platform was founded on 29th August 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California. Both of them came up with the idea and the name of the platform. Today, this American production house cum streaming platform is headquartered in Los Gatos, California, and has more than 12,000 employees all across the globe.
What is the purpose of Netflix?
Both the founders came up with the idea and the name of the platform. Essentially, it was named Netflix by combining two different words, “net,” which means internet-based, and “flix,” which is another word for movies. This tells us that it was created with the vision of making cinematic content available through the internet.
Initially, Netflix worked as a rent-by-mail DVD service. The founders created a pay-per-rental model wherein people could look at all the available content and place an order of whichever film they would like to watch on the website. Likewise, the delivery was made. However, with time, newer features and modifications were made to maximize the viewership of people and, similarly, the profit of the company.
Today we can watch top-notch content at the comfort of our homes as well as while traveling due to the excellent portability and convenience that it offers. The company’s purpose kept changing with the evolution of human beings and the increasing desire to consume content.
Now that we have the basic history of the streaming platform let’s find out about its popularity in today’s date. This will help you reason with the growth statistics that we are going to talk about further in this write-up.
Is Netflix popular today?
There are many streaming platforms available today, but Netflix stands to be one of the most popular ones, especially among young adults. The platform and it’s content is well received all across the globe for a variety of reasons. And understanding each of the reasons is extremely important to find out whether Netflix is growing or not.
Why is Netflix popular?
There are many reasons behind this, but these are the major ones:
Thoughtfully broadcasted content
The deal about Netflix is that it does not broadcast the same content worldwide. It designs a separate content framework depending on each country. After keeping in mind the country’s people, their culture, interests, political stand, and content consumption pattern, they mindfully determine which shows and movies are to be broadcasted where.
Apart from that, content produced by other production houses holds Copywrite claims for certain countries only, and considering the hefty amount at stake, they prefer publishing it only to the interested audience. This is an excellent tactic to target the audience effectively.
Netflix produces its original content, which is curated by keeping all current trends in mind. Netflix originals tend to attract young people instantly, and some of the most relevant examples are content pieces like Stranger Things, Mindhunter, BoJack Horseman, The Crown, etc. Apart from these, the original content also offers a wide range of shows and documentaries, varying in genres like crime, sci-fi, mystery, etc.
Due to such an incredible production of original content, which cannot be found anywhere else but Netflix, the platform has kept its users attracted for a long time now.
To make things clear, we are talking about licensed content here. Along with original content, Netflix also holds quite a substantial amount of content created by other major production houses in the world, such as Disney, AMC, NBC, and the list goes on. What Netflix does is that it collaborates with producers and directors from various media houses and acquires licenses to publish their movies or shows.
Netflix usually works with highly successful content creators so that their content can be viewed by the consumers too. In this way, Netflix users get more variety as the platform ensures that there is something for everyone.
In today’s fast-paced world, connectivity is everything! A significant portion of the population does not seem to have enough time and energy to take time out to watch content on Netflix actively. But that doesn’t mean that they don’t catch up on the latest shows and movies at all. They rather prefer watching it while they are traveling as a part of their daily commutation.
While on the train or bus, they remain entertained by watching content as Netflix allows its users to download content and watch it offline. This eradicates the trouble of finding a stable network connection while traveling, which is why consumers love it.
Now that we have a fair gist about the overall functioning and level of popularity of Netflix, let’s get to the prime intent of this write-up, which is to find out who watches Netflix, how has its growth been so far, and does it continue to grow the same way?
First of all, who is the target audience of Netflix?
Essentially, the target audience of Netflix is GenZ and Millenials. Even if we consider general content consumption through online streaming platforms, the target audience is usually between 15 to 35 years old. The deal with this group of people is that they tend to explore every bit of the internet, use it to their complete advantage, and have the curiosity to learn from it as much as possible.
And with Netflix’s wide array of content, they can easily keep themselves engaged, entertained, informed, and enlightened.
They also tend to satisfy their urge to know and understand about different cultures, nationalities, and the stories coming from there with the help of Netflix. Hence, they are the prime and successful target of Netflix. But what’s the total count of viewers on Netflix? Let’s find out.
How many subscribers does Netflix have?
Netflix has shown an incredibly impressive and persistent rise in its number of users. So let’s track the progress year by year for clear understanding.
From 2000 to 2002
Back in the year 2000, when Netflix had just taken off, it had around 300,000 users. But then, within a period of just two years, this number doubled because in 2002, Netflix had more than 600,000 users, and that’s quite a grand leap. But that’s not it. After these initial years, the platform came up with more upgrades in the quality of content, increased the number of genres, and created a substantial buzz in the market.
From 2002 to 2005
Once again, a massive hike was seen in the number of users as the affordability among people started increasing for both- DVD players as well as DVDs. By the end of 2005, it had over 4.5 million active users. That’s right; we’re counting millions now!
From 2005 to 2010
This period of five years changed the game altogether for Netflix as it announced its brand new feature of “streaming.” By the end of 2010, people could access Netflix and stream content through devices such as Xbox 360, PS3 as well as Apple TV.
From 2010 to 2015
During these periods, Netflix expanded its reach. Now it was made available to other regions, including Canada, Latin America, Europe, and the Asia Pacific. It also developed its own website-based platform to improve reach accessibility.
Along with this, Netflix made another game-changing move by launching original content on the platform. The first-ever Netflix Original show was Lilyhammer, streamed in the year 2012. This show was received very well by the audience, and in the next year, more original Netflix shows were produced, such as “Orange Is the New Black,” “House of Cards,” etc.
At this point, Netflix had around 66 million users, all thanks to the expansion of broadcasting and producing original content.
From 2015 to 2019
With more advanced features, better content (both- original and licensed), and strong marketing strategies, Netflix grew its range exponentially. By this time, Netflix was made available in all parts of the globe, except for mainland China and Crimea, due to rejection from the country’s side. The company also launched mobile-based apps to ensure greater connectivity.
Netflix paid more attention to create their original content in order to deliver a sense of versatility as well as to build a loyal fanbase of the Netflix Originals. And guess what, they successfully managed to do so! Netflix also won several award nominations like the Emmys and even the Oscars for its original content, which caused more cinema lovers to join the Netflix club. By the end of 2019, Netflix had over 167 million active users.
The year 2020 and 2021
As we all know, 2020 was quite disastrous, as the world was hit by the fatal coronavirus pandemic, and most of the countries announced a complete lockdown. This gave people more free time, which eventually led to boredom. As a result, more and more people started subscribing to Netflix to watch interesting films, Tv series, documentaries, and so on to kill boredom and remain entertained.
Due to such conditions, a drastic hike starting from 2020 to today’s date in 2021. You will be surprised to know that at present, Netflix has more than 203 million paid subscribers.
So this was the yearly timeline of the growth of Netflix from the time it was founded till the present year. Now, this brings us to the biggest question of the entire piece.
Is Netflix growing?
The answer is yes. The timeline mentioned above is clear proof that Netflix has been growing since the beginning of its time. And with the pandemic in the picture, the growth has been an extraordinary one. As mentioned previously, Netflix has more than 203 million users today, and the number keeps increasing by the day.
Now there are many reasons behind such growth. Let’s discuss them in detail, and then we can learn about the other facts and figures of the platform.
Why is Netflix growing?
The incredible growth that Netflix has shown to date is a result of numerous reasons, and they are as follows:
Low subscription prices
Netflix offers several packages, differing in its features and, likewise, the prices. The basic plan costs $8.99 as it is an entry-level plan. The standard one costs $13.99, and the premium plan costs $17.99, which is quite reasonable considering the features and exceptional content that the user gets.
And the most important thing is that the price is absolutely worth it because you don’t have to worry about ads and can binge-watch for as long as you wish to. You can also stream the content online as well as offline, which makes the experience all the more convenient. Since all these things are offered at such low prices, Netflix continues to grow.
A wide array of content
As mentioned previously in this write-up, Netflix offers both- original content as well as licensed. This means that Netflix users can easily get the best of both worlds on a single platform. Netflix originals have truly won the hearts of content consumers from all corners of the world and, therefore, has developed a loyal fanbase of its own as those Netflix-produced shows are not available anywhere else.
In addition to that, users can also watch content from leading directors and producers. The versatility is also seen in the genres that the platform offers. Moreover, content in various parts of the world is broadcasted.
The best thing about Netflix is that it is compatible with every software and almost every single device that is available today. Earlier, it was only available in the form of a DVD system, but today with the development of a website, one can stream it on laptops and desktops.
Later, with the creation of the Netflix app, which is compatible with both IOS and Android, people can watch content through their phones, tablets, and iPads, too. This has also added the feature of portability. In addition to all these things, Netflix is also available on all streaming devices, whether it is Apple TV, Roku, Hulu, or any such service.
Enhanced technical details
With increasing technologies in video streaming, people have grown more conscious of the video and audio quality of the platform. And let’s be honest, the concern is indeed valid, considering the fact that we are paying for it. To stand up to the consumer’s expectations, Netflix offers enhanced features like Ultra HD and 4K content, Dolby Vision video, Dolby Atmos audio, and so on, provided that your device is compatible with it.
All these tech features help in creating a theatrical environment while viewing content on Netflix and ultimately creates an extraordinary, cinematic experience for the audience.
Availability of various languages and subtitles
Netflix understands that their content gets published to the whole world, which is a massive cross-section of society. People from different nationalities, speaking different languages, watch content on Netflix. So, to ensure that everyone understands everything, Netflix makes sure that the shows are available in various languages so that even the people who don’t speak the particular language can switch it up at their convenience.
However, not all shows are available in multiple languages, which is why Netflix provides subtitles in different languages. This makes sure that the content is not limited to a certain part of society.
These are some of the features that have made Netflix one of the top-rated streaming platforms and ensured a constant growth in viewership. Now it’s time to address some more questions that explain the global stand of the company.
What is the global ranking of Netflix?
Netflix had always been a well-ranked media company, but things took extraordinary shape in the year 2020, in the wake of coronavirus pandemic and lockdown being imposed in many countries. Ordinarily, the company had expected a hike of 7.2 million subscribers in 2020 but ended up getting 15.8 million paid subscribers, which is more than the double rise. And this hike caused Netflix to bag the 4th position in the list of the top 10 largest media houses globally.
How much revenue does Netflix earn?
While Netflix is not the biggest revenue-generating media house, it still manages to bring in an additional $30 million a month. Considering the streaming subscriptions alone, the company is sweeping in $950 million a month. Netflix makes around $11 billion per year.
In the year 2020, the total net income of Netflix was about $2.76 billion, and the annual revenue is more than $25 billion. As of April 2021, Netflix is worth $300 Billion in market cap value at IPO.
Who are the competitors of Netflix?
The biggest competitors of Netflix are streaming platforms like Hulu, Amazon Prime Video, HBO Now, Hotstar, and Sling TV, as all of these offer a similar range of features. However, Netflix stands out as it provides top choice content in a wide variety, including Netflix originals, comedy specials, documentaries, licensed films, and much more at a reasonable price.
This was in comparison with other streaming services, but what about the traditional medium of content consumption- cable television? Well, let’s address that, too.
Is Netflix better than television?
Ideally, people still watch television, but there has been a major shift from cable television to streaming services like Netflix. That’s right. Netflix has effectively managed to cause people to make the shift due to all the right reasons. What are they? Continue reading to find out.
Why is Netflix better than television?
Commercials can truly be a mood crusher while watching a super interesting, suspense movie. But on Netflix, you don’t have to worry about any of those, which makes Netflix better than cable TV.
On television, you usually don’t get to watch more than a couple of episodes of your favorite sitcom. On Netflix, you can easily binge-watch as many episodes as you want.
Schedule your content
Tracking and scheduling content on TV is impossible, and yet again, Netflix allows that. You can create your watch list and keep track of whatever you are watching quite effortlessly.
This brings us to the end of this blog as we answer the ultimate question.
CONCLUSION – Is Netflix going to last?
Yes, without a doubt. Netflix has been at the top of its game since the very beginning. It has defeated other streaming platforms as well as cable television. Besides, the year 2020 proved to be a blessing in disguise for Netflix as more and more people started understanding the value of the platform. So yes, Netflix has been for quite a while, and it is here to stay because even when the entire world came to a standstill, Netflix continued to grow.