The Rise of Netflix’s Original Programs

How original content is helping Netflix to stay ahead of their competition.

It’s been eight years since Netflix began their streaming service, and they have since become one of the most successful companies on the video on demand market.

”The goal”, Netflix’s content officer Ted Sarandos told GQ back in 2013, ”is to become HBO faster than that HBO can become us.” House of Cards would premiere just a few weeks later, only to become one of the biggest successes of Netflix to date, followed by Orange Is The New Black, Daredevil, Stranger Things and more.

Three years after this statement Netflix has more shows in production than HBO, FX, Hulu or any other competitor. Here’s the thing, the streaming service’s business model has everything that it’s competitors are lacking: It’s half the price of HBO and available in far more countries than Hulu or Amazon Prime. It’s accessible, easy and cheap. The original productions cover a lot of ground: from kid’s cartoons to horror, but there isn’t much overlap between genres. This helps the entertainment company with recommending you the right shows. They know what you like to watch.

Netflix also isn’t scared to take the necessary risks: They are known for releasing a whole bunch of episodes all at once. And let’s be honest, you binge watch them all, just like me. They know this, it’s a smart business strategy on Netflix’s part. All the people bingeing Stranger Things last month – and talking about their bingeing – is what encouraged me to start watching it as well. Does that sound familiar?

But just because the streaming service is currently taking the lead in original content production doesn’t mean it’s game over for it’s competitors. HBO has won far more awards than Netflix ever has, and then there is profitability: last year, Netflix had more subscribers and revenue than HBO, yet HBO still surpassed Netflix in terms of profitability.

Original content is definitely not the only factor that has led the streaming service to it’s current success, but it’s helped them to stay ahead of the game. However, whether they will stay on top is unclear, as its competitors will definitely learn from their business model and might use it to their advantage.

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