Netflix has remarkably grown from a simple mail-order business to a giant streaming company with over 214 million worldwide subscribers in just over ten years. Despite facing stiff competition from technological maestros like Amazon and Disney, Netflix still seems to snowball and is on its way to global streaming supremacy.
Netflix’s Main Streaming Emphasis
Netflix’s sole focus on streaming guarantees no other distractions. Although the company has begun to break into the gaming and merchandising industry, its new business ventures are based on video streaming.
This singular focus puts Netflix miles ahead of its major competitors who also have other huge business ventures to manage. In fact, for Apple, Amazon and Disney, running streaming services only seem like passion projects.
Apple has a whole ecosystem of Apple products to monitor therefore, financing a streaming service is less of a priority to the company. Amazon also has a massive cloud and retail enterprise to maintain, while Disney has its successful Mickey Mouse House to run.
Netflix Spares No Expense on its Content Production
Focusing 100% on streaming for years on end, has empowered Netflix with unmatched content in terms of quantity and quality. Netflix is beginning to spend an unparalleled amount of money for its content production that many of its cash-rich competitors can’t keep up with. Leaping last year’s expenditure of $ 11.8 billion, Netflix announced that it was set to cash out $ 17 billion on content production in 2021.
Netflix, therefore, has an unbeatable streaming budget that no other company comes close to, no matter how established they are. Resultantly, as Netflix spares no expense to revamp its content, it in return gains more subscribers.
Subscriber Base Perk
The streaming giant’s unchallenged 214 million subscriber base enables its content to be widely distributed. As a result, Netflix can take any unpopular film or TV show and convert them into big hits. A good example is the series, You, that was previously a limited Lifetime show before being launched on Netflix.
Big players like Amazon have to rethink devoting a truckload of cash into streaming content that only end up being fringe contenders. So, Netflix is set to experience exponential subscriber growth as well as profit margins just round the corner.