NETFLIX, 10 INNOVATIONS THAT HAVE CHANGED THE WORLD

Since its creation in 1997, Netflix has grown from a small start-up that delivered e-mail-ordered DVDs to the world's first streaming film company with more than 80.5 million members worldwide, including 35 million who look at Netflix internationally. Meanwhile, the company has broken down barriers, shaken up the industry and set the new standards that others are now following. What's even more important is how Netflix changed the company. The services, the personalisation and the content have had an effect on the way we look at the movies and we are using television. Today, instead of watching everything we want, whenever we can find it, go to the movies or rely on bulky cassettes or DVDs, When we look at whats trending today, what we want when we want it and where we want it, as often as we want it. Here is a summary of the top 10 Netflix innovations that have changed our lives.

10 things Netflix has changed in our way of watching TV

1. Netflix, the Original

The original concept is perhaps the biggest innovation of this company. This has brought us to the giant we know today and all the other innovations that have followed. It was designed by Marc Randolph and Reed Hastings who has remained CEO until today. Hastings had this idea after paying a major late fee for a movie, so he wanted to offer a film rental that is not only inexpensive but also easy to make. Randolph added Internet in the case. Previously, he had worked in similar companies and knew he wanted to sell something on the Internet, even though he did not know exactly what. The idea: to offer film rental on the Internet and deliver it by post. Together,

Netflix was first launched in 1998 on a pure lease model with associated late fees. A year later, the subscriber model was added and eventually led to the end of the original concept. Since then, the company has grown on the basis of the concept of fixed costs and unlimited rentals. However, this has not always been easy. The company was not profitable before 2003, 6 years after its inception, but this is mainly due to growth-oriented strategies by Hastings and Randolph.

At that time, BlockBuster even received an offer to buy back Netflix which it declined, which led to its disappearance. As of 2005, Netflix sent more than 1 million movies a day, a volume that Blockbuster could not match. Blockbuster is still operating as a Dish Network brand, but has grown from a maximum of 9,000 stores and 60,000 employees to only 50 stores today.

2. Netflix, the subscription model

After the creation of the company, the evolution towards the subscription model is the second biggest innovation of this company to date. Until then, film rentals were - one might say - a risky process, even with Netflix. Viewers had to log in, pick a title, pay for it, wait, watch the movie, send it back and hope not to incur a late fee. Film rental fees were reduced compared to a rental store, but still high compared to the current model, and they could increase dramatically and if the film was not returned within the time limit. The original model allowed users to watch Netflix globally for a low cost per movie, reduced late fees and ease of doing it from home,

The switch to a subscription model was a bet, but it paid off. In the first year of its launch, it became clear that this represented the future of video rental, which quickly eclipsed the initial business model. In 2000, this system was abandoned in favor of subscriptions alone and allowed the company to grow and become profitable. The fact that users could watch a movie whenever they wanted, as many times as they wanted, without delay and no late fees was revolutionary and changed the very nature of this movie rental business.

3. The Netflix File

You may not think that the queue is a major innovation, but it is fundamental to the Netflix experience. This allows users to create a list of movies, TV shows, documentaries, cartoons and other DVD content they build to watch. The list is used to determine which movie is then sent, so users do not go through the sometimes hazardous process of choosing what to look for. Each time a movie is returned, a new movie is sent. If a movie is not available, the next one appears on the queue list for delivery. Members can add or remove movies, up and down movies as they see fit, Add comments and notes that are then used by the platform to suggest new titles. A basic subscription allows to get to one movie at a time, the next level is two movies at a time. Having two movies at a time means that you have a home movie ready to be watched and another at the post, thus creating a steady flow of entertainment ready to be watched.

4. Custom recommendation system

The subscription distinguishes the business model of Netflix, but it is also a technology company and the product is customization. The platform is built around a customized recommendation system that uses a variety of algorithms to match the members' favorite content. The system uses ratings and comments from viewers in the past and matches the movies with viewers based on their story and comments. The software has been in development for over ten years, long before the company pays a price of $ 1,000,000 to developers who have managed to improve performance by 10%. The algorithms display the content in two dimensions: titles are listed horizontally, arranged vertically by genre, sorted by preference,

The fact that the algorithm is global is an important point. It uses information from users around the world to make suggestions, regardless of gender, location or age. Suggestions are made solely on the basis of viewer ratings and individual preferences. Each title is grouped into thousands of "groups" according to the content, each viewer is allocated a number of groups, which are used to suggest films to members. Since there is no demographic bias, the suggestions are made in relation to what other viewers of a specific video look at, not on who the viewers are.

5. Transition to Video Streaming

The impact of Netflix in relation to how we receive our video content became more evident with the switch to streaming. When Netflix started, it was a DVD rental company offering an increasingly wide selection of movies and content. This was a blow to the classic movie rental companies like Blockbuster, but also an inevitable change. Over the years, streaming content has become major and the company has slowly begun to evolve, but the change has moved to higher gear in 2007 with the launch of video on demand. Three years after this change, Netflix has lost its place as the largest US postal service customer, but has become the most visited website outside of working hours. To put it bluntly,

In the beginning, Netflix was not the only one to go to streaming at one point and still has competition today. But it is the largest provider of international TV content streaming and other content in the world today. This movement has been at the heart of the company's ability to grow and dominate the market.

The change was not made at once, it almost never ceased to take place. In its early stages, the streaming service did not start with unlimited access. Subscribers to original DVD services were allowed one broadcast hour for every dollar spent per month. For the most part, it meant 17 hours, or $ 16.99, but eventually it was deleted. When the service of Apple and Hulu streaming also appeared, Netflix decided to counter the threat of competition by opening unlimited access to all users except those who used the basic subscription of $ 4.99 / 2 DVD subscription monthly. Over time, service has evolved for current rates ranging from $ 7 to $ 12 per month, with a free trial month for all new users.

Perhaps the most compelling feature of the subscription is the ability to use multiple user profiles to access an account. With each subscription, up to five profiles can be created from five different locations, as long as the original account connects via one of the devices. This feature is especially useful for families or roommates. The only limits to the international distribution of Netflix is ​​the copyright, locally or internationally - which allows to block certain contents in certain places. The sad truth is that all content is not allowed in any country, or Netflix is ​​offered, and are blocked.

6. Exclusive content and original programming

Whatever the model used, Netflix's service always consisted of providing content. To do this, he built a vast library of exclusive deals with most of the major entertainment companies. Over time, the company has entered into agreements with Starz !, Metro-Goldwyn-Mayer, Paramount, Lionsgate and many others allowing it exclusive access to popular movies available nowhere else. Their market dominance led to intense competition for content and the creation of original programs.

Netflix innovated with an exclusive content concept by starting to buy and then developing its own original programming. Initially, Netflix was criticized for its unorthodox methods, but the company has proven its ability to produce new shows cheaper than mainstream media and offer them in a way that matches the wishes of the viewers. By switching from a rental offer to an entertainment offer, this has further expanded the loyal fan base by creating interest. The first project, House of Cards, was first broadcast in February 2013 and was followed by dozens of new programs. Partnerships with companies such as DreamWorks and Marvel TV have also helped Netflix produce exclusive original content for its members.

7. Worldwide reach, Unlimited access

For unlimited access, Netflix brings us to another level. The full library is available to most members with some limitations due to legal restrictions in some areas. By being web-based, its members can access streaming content from around the world. On top of that, the platform runs on almost every device existing on the market today.

Netflix has partnered with several device manufacturers to offer its services to as many people as possible. Manufacturers of decoders like Roku, blue-ray players, smart TV, game consoles like X-Box, PlayStation and WII and many others with an Internet connection support all Netflix applications. This allows members more flexibility, access to movies and watch them directly on their computers, tablets, phones and especially their TV. The number and types of devices facilitate streaming access from around the world for viewers.

8. Binge Watching

The binge watching (which is translated into French by gavage TV or watching in burst) is a buzzword. And many of us practice it, but we do not want to admit it. The word spread when Netflix started its foray into the world of TV series. When Netflix started offering whole seasons of television series, it allowed viewers to watch as many episodes as they wished, at any time, on demand, as they wished.

According to a survey conducted by Netflix, more than three quarters of respondents say binge watching consists of watching 2 to 6 episodes of a program in a single session, more than half say they binge watching regularly. For many, this can go much further. When there are several seasons available, they go up to watching the same program as a result, stopping just to sleep.

In reality, the binge watching began with broadcast and cable television in the form of marathons. Marathons allowed viewers to watch several episodes in a row and were often broadcast by season or theme. The term was then applied to what viewers do with VHS and DVD formats at home. Its use has grown with the advent of streaming and video on demand and has become widespread with the release of series such as House Of Cards and Orange Is The New Black.

9. Changing the entertainment industry

One of the advantages of the subscription model for the company and the viewers is the lack of advertising. Since the company does not need to increase revenue through advertising sales, it saves money because it does not need to have a commercial service and viewers get a view without advertising . The advantages seem obvious, and some less obvious ones concern the modification of the very structure of the entertainment industry. Another is that content creators are no longer linked to the traditional 30/60 minute frame of traditional television. The other change is that designers no longer have to write in a format requiring weekly viewing.

Changes in how content is created, how it is distributed and how the viewer consumes it forces other industries to change as well. As Netflix dominates the cable industry, television and film companies all have to evolve to survive. Not only do cable companies have to struggle to have rights to content, but they have to create new content and distribute it to consumers in the way that they demand it now, on demand. Think about it, just about all media have a streaming content site that was not the case a few years ago.

In addition, leaving entire seasons in bulk allows the company to save money where other content producers can not. The traditional method of launching a show involves making a pilot, and in fact hundreds of pilots are made each year but only a dozen give rise to a program and many of them end after a few years only. Netflix searches for attractive content and contracts for an entire season. This eliminates the need to create a driver, favoring its own content in relation to what marketing people imagine to be able to attract a maximum audience.

10. The latest "Innovation": blocking VPNs

The latest innovation that has earned him criticism from many Netflix users, Internet advocates and anyone who uses a VPN for streaming, is that Netflix has been blocking VPNs. The reason given? Due to copyright and local and international censorship, all content is not available worldwide. VPNs help users circumvent these restrictions. The VPN for streaming and other equivalent services allow you to block or change a computer's IP address and country of ID so that users can have full access to online content.

As early as February 2016, services such as Private Internet Access, ExpressVPN and Mullad began to report blockages and many of them saw access to Netflix completely blocked. Netflix Vice President David Fullagar summed it up well, saying, "If all our content was available globally, there would be no reason for our members to use proxy or unlocking systems."

One of the criticisms made of the blockade is that it will get more people to hijack content. Another is that web developers and hackers will find new ways to get around the blockade.

Netflix has gone from a small technological start-up to a company that has changed the world through innovation. Its original programming, exclusive content and Netflix international streaming make the international streaming service one of the most popular in the world. It has 80.5 million subscribers in the world as reported in April 2016, and its popularity continues to grow. More than 35 million people watch Netflix international outside the US and many of them use a VPN for streaming without constraints and accessing the many Netflix libraries in other countries.

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