Netflix has recently announced their plans to launch their own original series, House of Cards. The show, which plans to launch at the end of 2012, will revolutionize the public view of online video. In Ryan Lawler’s article, NetFlix Is the New HBO—And That’s Good for the Future of TV, he compares NetFlix’s addition to HBO’s improvements to cable TV. HBO changed the experience of cable TV by airing new movies faster and by producing original documentaries, along with original series like The Sopranos and Sex and the City. Similarly, Netflix’s House of Cards is expected to hit the online market with a bang.
Netflix chose to undertake the show after careful consideration of their consumer base. A lot of thought went into the selection of the cast, director, and even genre. Netflix subscribers are familiar with how the company’s recommendation system personalizes your account. Based on your interests, Netflix suggests movie titles and television shows with the same actors, directors, and within the same genre. It is no wonder that Netflix went into their databases to discover which actors, directors, and genres would be most profitable. House of Cards will star Kevin Spacey and will be directed by David Fincher. Therefore Netflix will be able to target its customers who watch a lot of Kevin Spacey films or David Finch films or even those who watch a lot of dramas. Netflix will be able to bypass all the marketing expenses incurred by advertising online and on TV. Steve Swasey, Netflix’s VP of Corporate Communications stated, “We don’t have to spend millions to get people to tune into this. Through our algorithms we can determine who might be interested in Kevin Spacey or political drama and say to them, ‘You might want to watch this.’”
While it may seem risky to launch an original series, Netflix’s detailed database and surveillance of customer activity has made them confident with their decision to launch House of Cards. It will interesting to see how the show revolutionizes online video.
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I am very curious to see how the show does and how many people end up watching it. I read the article and it says that they predict it will hopefully bring them 2 million new customers, which would be a huge gain for Netflix. I think that making an exclusive TV show is a very creative idea for Netflix to enhance their market share and attract new customers. Users would sign up in order to watch the TV show, and probably use the other Netflix features as well. One problem I could see being an issue for Netflix is the availability of illegal tv show streaming websites. But hopefully Netflix took this into consideration and assumes that most people will obey copyright laws and will pay for a Netflix subscription to watch the show.
ReplyDeleteIt is interesting that Netflix is taking this next step in attempting to attract new customers. This tactic has proven to be profitable for HBO, so hopefully the addition will be beneficial to Netflix as well. I am unsure if it will attract many new customers though. I am a subscriber to Netflix, and I am sure I would check out the show if it seemed interesting, but wouldn't see myself subscribing to it just for the show. However, some people may be more apt to check it out and give it a try with this added bonus. It definitely adds more to the online company and I think it is a good business decision because it can't really do much harm.
ReplyDeleteOn another note, I think Netflix is a great example of a company intelligently using IT to satisfy their customers. It shows how beneficial it is to use IT because Netflix will save a tremendous amount of money on marketing expenses since they already have the tools to target their viewers.
After reading both this blog post and the original article, I feel there is no reason that netflix won't bring in the 2 million more customers. I am an avid user of Netflix myself, and unlike Erin said, I feel that this move will attract an entirely new base of consumers while simultaneously pleasing their consumers now. Netflix already does the suggestion, based on your preferences anyhow, so why not start an original series that will target many of their customers already? I feel like this almost might be too easy for netflix. Like the blog says, netflix wont have to spend the millions in marketing and advertising for this because they already know who they are targeting because the show is based around the preferences of the consumer. This would be huge for netflix if it does succeed because it will open up another huge avenue. After netflix began the online streaming, their consumer base grew, and I feel that this will have the same if not a greater impact. A service that makes shows based on our preferences? Sign me up.
ReplyDeleteI am happy Carolyn blogged about this article. I enjoyed and related to this post because like Dilshan, I am a big fan of Netflix. I think it is very interesting and clever how Netflix casted the show and chose a directpr using their information technologies. I know I have began watching new shows or movies I haven't seen based on what Netflix suggests for me/ recommends is most watched in my area. As of now, Netflix's House of Cards's largest competitor seems to be HBO's original series. However, Netflix, by turning their data into useful information, is delivering a show they know will attract and satisfy viewers. In my opinion, this is giving them leverage on HBO. Netflix, like Harrah's, can make a name for its self based on their customer care and service to customer needs. In the gaming industry a lot of Harrah's competitors opted not to invest in IT. This leads me to wonder if HBO will adopt new information technologies to also attract new customers and level the playing field. As of now, I am looking forward to watching House of Cards.
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