How Netflix Has Changed the Entertainment Industry

Featured article by Emily Roberts, Independent Technology Author

Before Netflix was a big deal, Hollywood and the entertainment industry had to deal with unauthorized copies of movies and T.V. shows floating around and being sold and distributed to consumers. More commonly known as ‘bootlegs,’ movies could frequently be found being sold first in VHS tape then DVD format for less than the price of a movie ticket. Of course, the entertainment industry lost profit due to the distribution of bootlegs, but it was basically par for the course.

In big cities like New York, you can still find people selling bootleg DVDs on the subway and in the streets, but most consumers have moved beyond that. The future of the entertainment business is now almost totally in the hands of streaming video companies like Netflix and Hulu, according to a recent article by MBA@Syracuse, the online MBA program from Syracuse University. The good news for the entertainment industry is that they’re getting their rightful cut of the action now.

How Netflix Became Influential

For a time, Netflix was a big draw for movie buffs who just wanted to control the movies that came on their televisions. Everyone knows that cable television stations such as HBO and Showtime show a pretty impressive line-up of movies, particularly on the weekends. This is the time in which they premiere new movies specials. Those who watch a lot of movies kind of got tired of watching the same dozen or so movie a month, so Netflix gave them access to a library of something like 50,000 new, classic, and foreign films. For a small monthly subscription fee, Netflix was a huge win for film aficionados. Their offering of available entertainment options was inexhaustible, as films were frequently added and taken away. Years into its existence, Netflix made a change that altered the landscape of home entertainment. Instead of just offering movies, entire television series were added. Enter what’s known as ‘binge-watching.’

Why Binge Watching Is Crucial

Every time you watch four, five, six, or even an entire season’s worth of episodes in a television series, you are officially binge watching. Netflix now gives viewers the chance to catch up on T.V. series in the course of a couple of days. Before Netflix, you had to get the DVD set of a television series, which always didn’t become available at the end of a season. In short, Netflix was huge in creating a big cult-like following for television shows like ‘The Walking Dead.’ Even the creators of ‘Breaking Bad’ admit that the shows would not have been as big a hit if it weren’t for Netflix. In fact, the series creators let it spill that the show probably wouldn’t have lasted the same amount of time on the air if new fans hadn’t binge-watched old episodes, caught up, and helped to increase viewership season after season.

Consumers Are Now Opting V.O.D. Instead of Cable

Another change that has happened with the entertainment industry is that fewer people are watching or subscribing to cable. For a much lower price, they can not only watch Hulu, Netflix, or Sling TV, but they can also customize their viewing experiences. In short, Netflix made it so that entertainment companies had no choice but to license their films and T.V. shows to them too. No longer are cable companies getting new movies months ahead of streaming video and video on demand services, so they don’t have as big an advantage. More viewers are tuning in to different T.V. shows and movies than they would otherwise have watched with a cable subscription service. This is because they don’t have to tune in to a particular channel at a certain time to watch the newest episode. Instead, television series have adapted to the demands of consumers.

What Are Viewers Willing to Pay For?

So, there’s the standard video on demand series that you can use to search for television series, as well as movies that you want to see. There are also video on-demand programs and apps that can be difficult to find and setup, and not all of them are 100% legal, but they do make entertainment free for viewers.

Many entertainment industry experts consider these programs like a new age version of bootleg videos, but on steroids. For every person that will still pay to stream a rental video or signup so that they can stream T.V. shows online, there’s one who will also go to great measures not to pay a dime. These kinds of viewers have always existed, but they never really spoke out about how they were going about nefariously watching T.V. and movies for free. Now, there are entire forums dedicated to ‘jailbreaking’ Amazon Firesticks so they can be outfitted with free movie apps. It seems that viewers are only going to pay for what they put a value on.

Netflix Exclusive Series and Movies

Traditional movie studios and television producers also have more competition, thanks to Netflix. Series such as ‘The Santa Clarita Diet,’ starring Drew Barrymore is an example of what Netflix is willing to invest in. Not only are these movies and series only available on Netflix, but they give viewers yet another reason to maintain their subscription fees.

The first projects put out by Netflix were met with negative criticism, but now, with ‘Stranger Things’ gearing up for a Golden Globes nomination, the video streaming service is starting to be taken seriously in the entertainment industry. With more exclusive content, consumers are going to have to decide if they’d rather watch live T.V. streaming apps that also give them access to videos on demand, staying with Netflix, or investing with both.

One Netflix Account – More Options

When you get cable, you pretty much only have one place that you can watch it – at home. Sure, there are apps that also enable you to watch certain channels on your mobile phone, but these apps don’t allow you to flip the channel like you do on your T.V. set. Netflix makes it possible for you to sign-in wherever you want to watch T.V. You can also have multiple users on one account at the same time, so your boyfriend can watch Netflix while he’s on his laptop in the living room while your great-aunt enjoys a different movie in the guest room before bed. Netflix is giving viewers more options and fewer limitations for pennies on the dollar.

People are still watching copious amounts of television; they’re just getting smarter about it. DVRs are now used to record shows that come on at inconvenient times, so viewers don’t have to try and build their schedules around television show broadcast times. Even those who are on a budget can keep up with their favorite television series during their first run, by using subscription-based video services to catch up and binge watch. Netflix is even helping to create a new generation of stars on its own, with some of them having no previous television or film credits. Nowadays, if you want to watch television, you can actually do it from a tablet rather than a standard television set. Turn it on when you want, pause it when you need to take a break, and come back to pick up where you left off – on your terms.