From relatively humble beginnings as a DVD-by-mail service, Netflix has grown into one of the world's most influential video streaming services. The company was one of the first to see the potential of video streaming technology and began transitioning to a subscription video-on-demand model in 2007. Since this transition, Netflix's revenue has grown from $1.36 billion to nearly $15.8 billion in just ten years. , The number of Netflix subscribers has followed a similar trend, growing from less than 22 million in 2011 to nearly 150 million in 2019.
Netflix Subscribers
Although the company's popularity is booming around the world, the United States continues to serve as the most important market. US in 2020 The number of paid Netflix subscribers in the U.S. exceeded 70 million, and more than 50 percent of the U.S. Based adults had a current Netflix subscription.
Netflix Users
In addition to its huge user base, Netflix's customers are highly engaged with the service, with 59 percent of young users rating it as their most indispensable TV network. Given these staggering numbers, it may seem hard to believe that other companies can make a mark in the subscription video-on-demand market, but Netflix competitors Hulu, Amazon Prime Video, and DisneyPlus have also made inroads within the SVOD landscape. important places have been made. That being said, very few people consider the latter three to be essential video streaming services compared to Netflix.
Market Conditions
One of the main differences between Netflix and its competitors is its vast wealth of original content. More than 350 Netflix originals were produced globally in 2019, a number that is only expected to expand in the future. The popularity of shows such as House of Cards, Stranger Things and Orange Is the New Black has made original programming an integral part of the company's continued success. More than a third of users say that original programming is their most-loved content across the entire Netflix platform, and more than 60 percent of Netflix customers say that's the factor when it comes to their decision to use the service. Netflix original shows are either very important or absolutely important.
From the beginning, it was Netflix's ability to adapt to changing technologies and consumer demands that made it so successful. This ability to adjust has continued in recent years with the success of Netflix's original content and focus on providing content around the world. As long as Netflix can continue this trend of innovation, the company will continue to be an important voice in both the SVOD market and the entertainment industry.