Netflix's Shift to Original Content: A Change Context Analysis
This paper examines Netflix's strategic transition from a DVD-by-mail rental service to a streaming platform and, most significantly, to an original content producer. Using a multi-context change framework spanning community, political, social, and global dimensions, the paper argues that Netflix's move into in-house production is both exemplary and necessary. It explores how this change affects artist communities, government censorship challenges, shifting viewer habits, and cross-cultural content strategies. The paper also evaluates the leadership practices of CEO Reed Hastings, discusses the financial sustainability concerns raised by critics, and considers the competitive pressures posed by rival streaming services such as Disney+, Amazon, and Apple.
- Introduction: Netflix's evolution from DVDs to original content production
- Context of Change: Why Netflix shifted to producing its own content
- Community, Political, Social, and Global Dimensions: Four-context analysis of Netflix's content strategy
- Concepts of Change in Content Production: How in-house production reshapes artists and politics
- Leadership Demonstrated by the Change: Hastings' hands-off leadership and global cultural awareness
- Desired Change Practices and Outcomes: Competitive positioning against Disney+, Amazon, and Apple
- Conclusion: Financial risks and Netflix's dominant streaming outlook
✍️ How to write this paper — guide, tools & examples ▾
What makes this paper effective
- Applies a consistent multi-context framework (community, political, social, global) across every analytical section, creating a disciplined and parallel structure that is easy to follow.
- Grounds its central argument — that content production is Netflix's most important strategic change — with concrete competitive examples, such as Disney+'s acquisition of 20th Century Fox's library and Netflix's deals with high-profile creators.
- Acknowledges a counterargument (Collins's sustainability critique) and provides a rebuttal about the latent licensing value of produced content, demonstrating balanced analytical thinking.
Key academic technique demonstrated
The paper demonstrates multi-context change analysis, systematically evaluating a single corporate strategy through four distinct lenses drawn from Hickman's (2010) leadership change framework. This technique allows the writer to show how one organizational decision — moving into original content production — radiates outward and produces different consequences depending on the political, social, community, or global environment in which it operates.
Structure breakdown
The paper opens with a historical narrative establishing Netflix's evolution, then defines the central change being analyzed. Four parallel analytical sections (Community, Political, Social, Global) are each revisited in three successive rounds: first as contextual observations, then as concepts of change, then as leadership and desired-practice demonstrations. The paper closes with an outcomes section that weighs financial risks against strategic positioning, followed by a brief conclusion.
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, which 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 relying 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 major deals with Netflix, including Adam Sandler, David Fincher, and others. The only question is whether it can continue to support 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 explains why this change is both exemplary and necessary for Netflix, given the context of change in community, political, social, and global fields.
Context of Change
Netflix made the change to produce its own content in order to control its own library without having to rely on other studios for permissions and rights to stream that content. Netflix still offers the streaming of content 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 others. Netflix thus realized 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 delivered to the public with its DVD-by-mail service, but this disruption was only temporary and did not provide Netflix with solid ground for maintaining its position in the market.
References
Collins, J. (2020). Netflix's business model does not work. Retrieved from https://www.forbes.com/sites/jimcollins/2020/01/22/netflixs-business-model-does-not-work/
Frue, K. (2018). PEST analysis of Netflix: How politics and the economy impact the media provider. Retrieved from https://pestleanalysis.com/pest-analysis-of-netflix/
Hickman, G. R. (2010). Leading change in multiple contexts: Concepts and practices in organizational, community, political, social, and global change settings. SAGE.
Patel, S. (2018). Netflix's aggressive content-buying spree creates opportunities and risk for creators. Retrieved from https://digiday.com/future-of-tv/netflix-content-spree-creators/
Rosenberg, E. (2021). Why Netflix content is different abroad. Retrieved from https://www.investopedia.com/articles/investing/050515/why-netflix-content-different-other-countries.asp
Create your account
Always verify citation format against your institution’s current style guide requirements.