The streaming service turns 25 – but there is no jubilation
Netflix turns 25! The streaming service among the streaming services is thus celebrating its first real anniversary. Netflix has come a long way since the days of online DVD rentals. I send my warmest congratulations from afar – and I wonder if the congratulations are really appropriate.
A comment by Felix Gräber
25 years of Netflix – from DVD rental to streaming producer
It’s been 25 years since Reed Hastings and Marc Randolph founded a rather inconspicuous DVD rental company on August 29, 1997. Even then, the idea was revolutionary: While most people still rented VHS from Videobuster, Blockbuster or other providers by simply marching into their stores and grabbing what they wanted from the shelf, the two of them relied on Netflix for online film rental from DVDs – hence the reason the name that practically everyone knows today.
The offer of accessing films or series via the Internet has remained – only that is now implemented in a completely different way than in the early days. Netflix made streaming big and is still number 1 in the world. But the first mover has now become one of many. With Amazon and Disney, the really big global corporations have had more than just a foot in the door of the streaming market for a long time.
Netflix has to take a hit: the worm is in there in the anniversary year
Netflix is now feeling this more and more clearly. Since the beginning of the anniversary year, the streaming leader has had to the hardest hit so far plug in. For the first time in its history, Netflix has lost customers. Since then, the worm has been in there.
Netflix has to be accused in a tiring loop that the offer isn’t what it used to be. The quality of the content, much of which is self-produced these days, has declined overall. At the same time, formats that were actually successful would not be continued. It is too important to always have exactly the right new product at the right time in order to be able to convince new customers. On the other hand, the desires of existing customers are not taken seriously enough, it seems so.
On top of that, it didn’t stop with the first slump in subscription numbers, on the contrary. The minus is even growing. This does not go down well with the shareholders of the streaming giant, in the current year the former flagship company has more than lost half of its value on the stock market.
These series are particularly popular on Netflix right now:
Upheaval at Netflix? Streaming customers need to brace themselves for change
A successful trend reversal is still pending, Netflix hasn’t found the antidote just in time for its 25th birthday. A few steps are being taken to stop the decline in value: Netflix, for example, no longer plans to invest a lot of money in as many new productions as possible, but instead wants to pay more attention to quality and prioritize accordingly – it’s a shame that there is only one for this realization shot across the bow.
Also when it comes to advertising, Netflix has made a 180-degree turn done: For years, the official line was that Netflix would remain ad-free. It is now clear: There will be a partially advertising-financed subscription. In return for the advertising revenue, customers there pay less, but have to live with restrictions when it comes to program selection.
Netflix wants to take action against popular account sharing because it costs the company a lot of money. If customers pass on their account data to friends and family, for example, Netflix new customers and thus additional income go away. Tests are already underway to technically prevent account transfer – with mixed results at best.
The situation Netflix is in at the moment is not a nice birthday present. I wish you all the best anyway like many other streaming customers, not entirely altruistically. After all, we all want to be supplied with new films and sequels to our favorite series for a long time to come.
