How Netflix Has Changed Over the Past Decade

Netflix: Change Context Analysis

Introduction

Netflix began as a DVD-delivery rental service, with members renting DVDs online and Netflix sending them by mail to the recipient. The model quickly proved successful because of its low-cost structure for customers and its convenience. The large DVD rental chain Blockbuster that served as the traditional brick-and-mortar model for DVD rentals went out of business following Netflix’s growth in popularity with its online model of customer interactions. Since then, Netflix has transitioned away from DVD-by-mail service to a streaming service, where all content is available for streaming directly from its website. Additionally, Netflix is now producing more of its own content rather than rely on purchasing distribution rights from other content providers. Netflix has essentially become its own production studio and streaming service. This approach appeals to content creators who have signed big deals with Netflix, including Adam Sandler, David Fincher, and others. The only question is whether it can continue to indulge creators while keeping costs low for consumers. For Netflix, the most important change it has engaged in is content creation, because content is king. This paper will explain why this change is an exemplary one and a necessary one for Netflix given the context of change areas in community, political, social and global fields.

Context

Netflix made the change to produce its own content so as to be able to control its own library without having to rely upon other studios for permissions and rights to stream that content. Netflix still offers the streaming of content that it did not produce, but these offerings are temporary and are likely to end as other production studios implement their own streaming services, such as Hulu, Peacock and so on. Netflix thus realized that it had to make a transition to become a producer of original content in order to provide consumers with streaming options while remaining competitive in the streaming industry. It began by disrupting the way in which content is provided to the public with its DVD-by-mail service; but this disruption was only a temporary one and did not provide Netflix with solid ground for maintaining its position in the market.

Community

Netflix made viewing content radically more convenient for consumers first by introducing its DVD-by-mail service and then transitioning to streaming. Consumers no longer had to go to a brick and mortar location to obtain content, such as a Blockbuster or a movie theater. Now they could stream quality content at home on their personal computer or television. Netflix correctly identified the impact that the digital age would have on consumer habits and saw potential for a business model shift towards streaming content. This affected communities immediately, as consumers showed strong preference for Netflix as opposed to traditional methods of viewing content. As Hickman (2012) points out, Netflix was able to lead the change towards streaming by creating a service that appealed to the convenience factor most associated with e-commerce.

Political

Netflix is a global provider of content, but because there are many different governments around the world it has faced political pressures associated with censorship and permissions (Frue, 2018). Currently, Netflix is able to stream in the US and in other states around the globe. However, in countries like China it is blocked for political reasons that have to do with censorship and permissions.

Social

Netflix has been able to change the way people think about viewing content. Before Netflix switched to streaming, people were still resorting to DVDs. Today, DVDs are not sold to the same extent they used to be and renting DVDs is virtually unheard of. Everything is streaming today because of Netflix, which has changed the social landscape of viewership.

Global

In the global context, Netflix’s change has resulted in the need to appeal to different cultures with content, which is why Netflix is producing films around the world so as to appeal to various cultures in those parts of the world (Rosenberg, 2021). Producing its own content is an important change for Netflix that enables it to be a major player on the global stage of streaming. By creating content in foreign countries it is able to better appeal to those markets.

Concepts of Change

The concepts of change within the context of creating its own content include identifying filmmakers and artists who resonate with the public and bringing them into the Netflix studio, and branching out into other areas of content, such as live-streaming games. Netflix’s change towards in-house production demonstrates change in the community by altering the way in which performers and artists think about creating content. They previously had to work with big studios that wanted to control the process, but Netflix has appealed to these artists by adopting a hands-off approach that resonates with the community of artists and entertainers (Patel, 2018).

In terms of politics, the change has been a way for Netflix to control the permissions process of streaming. But it still has to navigate the issue of censorship, which means it must work with governments to make adjustments in different countries. Thus, Netflix still needs to find a way to be more politically engaged.

Socially, the change has demonstrated awareness of what society wants from content providers, which is easy access to content. Viewers welcome Netflix’s change because they like the service it provides. So long as the content is quality, they do not mind that the content is made by Netflix.

Globally, the change has shown that Netflix is engaged with cultural awareness and is bringing content from different countries to its library. Artists in foreign countries find Netflix to be a welcoming studio for producing. It gives them an opportunity to create that did not exist before.

Leadership Demonstrated by the Change

In terms of the community, Hastings is recognized by artists as the ideal CEO because of his hands-off approach to production. He wants creators to feel free to create content that they believe in. Because he believes in them, the community regards Netflix as a great place to commit.

In terms of the political, Netflix has created a working relationship with governments to stream content and protect user information. That is very important in the EU, especially, and Netflix leadership has shown awareness of concerns about privacy and government regulation. This demonstration of leadership has helped Netflix change to production with success.

In terms of social context, Netflix has shown leadership that is aware of social trends and demands. Had Netflix not begun to produce its own content, it would be at the mercy of other studios and would be losing in the streaming wars. However, leadership recognized that Netflix had to make this change and that is why Netflix continues to be the most recognized streaming name in the public.

Globally, Netflix leadership has appealed to other creators in foreign countries because they want to be culturally aware. Netflix has succeeded in showing that it cares about culture. The company wants to produce diverse content for all the world.

Desired Change Practices Demonstrated by the Change

The change to production has enabled Netflix to lead the community into the 21st century. CEO Reed Hastings saw that Netflix had to become a studio like other studios if it wanted to succeed, because in the end content is what matters most—and the company that controls the content is the company that will dominate in the streaming industry. This is essentially what Disney+ has realized and why that company purchased the library of 20th Century Fox and why it has pulled its content from Netflix. Disney+ aims to have the largest library of content in the streaming industry. To compete with Disney+ and other content providers, Netflix has had to focus on producing its own quality content, which is why it has appealed to critically-acclaimed directors like Martin Scorsese, David Fincher and the Coen Brothers as well as to popular performers like Adam Sandler to create content under the Netflix banner.

Politically, the change has given Netflix more leverage in how it negotiates with other countries on permissions and censorship. Netflix has great subscriber growth and can use that to its influence. Weaker companies have less power to do so.

Socially, the change has been welcomed because Netflix has recognized the social aspect of streaming. Instead of going to movie theaters for overpriced popcorn, people can stay home to stream. Netflix is loved for that reason.

Globally, Netflix has changed in a way that makes sense around the world. Culture is important to all people. They want to see films and shows that reflect their own values, and Netflix has responded by giving this opportunity.