Introduction
Almost all people like movies or series because watching TV is the most popular way to escape various challenges and relax after a long stressful day. In the age of the rapid development of technology, people do not have to go to the cinema, buy CDs, or turn on the TV to get acquainted with new products of the film industry. Now viewers can watch films, series, cartoons, and TV shows online. To date, one of the largest world’s modern multimedia companies is Netflix. The chance to meet someone who has never heard about Netflix is ​​minimal. This name is on everyone’s lips, as the service conquered millions of hearts worldwide and earned billions of dollars. The entertainment media company not only allows watching movies anytime and anywhere but also produces its films and TV series.
The History of Success
In 1997, Netflix was established in California as the first online DVD distribution store. Its founders, Marc Randolph and Reed Hastings admired the company Amazon and wanted to create a similar business idea. At that time, there was a popular legend that this idea came about after Hastings had been fined $40 for the late return of a copy of the film Apollo 13. The entrepreneurs were able to establish such a company due to money raised from the sale of Pure Software, which had belonged to Randolph. To protect from dishonest clients, Netflix only allowed new discs to be borrowed after customers returned the old ones. In 2010, the company entered the international market due to the appearance of streaming. In 2013, Netflix started the production of its films, series, and television programs.
The Major Achievements
Netflix has 209 million paid subscribers worldwide and ranks third on the list of US residents’ preferences. The company receives about 8 million new subscribers every quarter.
More than 100 Netflix films, series, and various programs are released annually. In 2016, for instance, the company released 126 TV series and movies – it is more than any other network or cable channel. Recently Reed Hastings announced that their service is available for user registration in 190 countries around the world. In 2019, this company was recommended for an Oskar in fifteen nominations and received three awards (for Best Direction, Best Cinematography, and A Film in a Foreign Language (the movie Roma)).
Reed Hastings has also set up a $100 million charitable foundation to support educational programs and projects.
The Main Strategies of Netflix
The company’s central values are:
- honesty and ethical behavior, including in dealing with conflict situations;
- complete, accurate, and understandable reporting, including the release of financial statements;
- excellent service, quality products, and reasonable prices.
As for the main strategies of Netflix, it is necessary to highlight the following:
- The transition to online format: in 2007, the company refused to send out discs and began to work in an online format, increasing its audience.
- The transition from distribution to production: Netflix decided to create unique content and now offers viewers not only the expected films and series but also produces high-quality movies;
- The audience research and statistical algorithms: the company has accumulated customer data (age, languages, preferences in genres of cinema and actors) in the database for years and carefully analyzed them before starting filming.
Functioning of Netflix in different countries
Although Netflix has subscribers from 190 countries, not all its products are available in these states. If lists of Netflix films are compared in the United States of America, the United Arab Emirates, and the countries of the Middle East and North Africa, the following will be noticed:
- Netflix’s American list consists of 3449 items;
- The UAE has 300 movies and about 1000 TV shows with free access;
- Residents of several countries of MENA (Iran, Saudi Arabia) can watch more than 100 films;
- Residents of Morocco can watch only 39 movies;
- Syria has no access to the Netflix list because of US sanctions.
Cultural Differences in Cinema
Considering that Netflix shows its films to residents of 190 countries, it must take into account cultural differences in the mentality of various people. The film market is considered from three points of view: film supply, film distribution, and film demand. Netflix has concluded that viewers choose the movie according to the following details: the director’s name, nationality, year of production, ranking, quality, and presence of star actors. Moreover, there are specific distinctions in the understanding of several concepts in different countries. Filmmakers have to be careful about matters that relate to religion. The Last Temptation of Christ, for example, was deleted in several states. The movies, which have a hint of the country’s politics, are also often deleted (the episode of Patriot Act with Hasan Minhaj was not appreciated in Saudi Arabia).
Considering that the main part of viewers consists of women, filmmakers should understand that the concepts of “marriage”, “divorce”, “unwed mother”, and “working mother” in the USA and the MENA countries are also different.
Conclusion
Netflix understands all these nuances and offers the streaming of movies with specific titles in different countries. Sometimes, the company chooses to pay the studio-demanded price to change a heading in one state to ensure that the audience will watch the film. To avoid conflict with companies from other countries, Netflix also limits the number of films that travelers can watch. Despite this, the company offers paid access to content without geographic restrictions, attracting new subscribers.
Thus, Netflix is one of the multimedia giants that has been successfully operating for more than twenty years. Its high-quality content allows it to develop not only in the USA but also in Europe, in the countries of the MENA, and in other corners of the world.
References
Rosenberg E. (2021). Why Netflix’s content is different abroad.