With Netflix branching out from their original content being mostly scripted dramas and sitcoms to adding comedy specials and children's fare, TV networks are getting nervous about how they will be able to compete with this new Netflix. Not only does their new extension of original content, consisting of 70 new titles this year, scare TV networks but so does their spending. According to the WSJ article, "Netflix's spending on original and acquired programming this year is expected to be more than $6 billion, up from the $5 billion last year...five times as much as 21st century Fox's FX" (Flint).
TV networks are finding it hard not only to keep up with the spending of Netflix but also in finding talent that will work on their shows and employees that will help run the network and produce new shows. For example, the former Vice President of 21st Century Fox, Tara Flynn, left Fox to go work for the streaming service. Fox tried to sue Netflix because they felt like Netflix was "stealing" executives and this "ongoing legal battle is just one sign of the escalating tensions between Netflix and Hollywood" (Flint).
It will be interesting to see exactly what effects the new Netflix will end up having on televisions networks and regular broadcasting in general. This rivalry is a prime example of the marketing concept of the threat of new entrants because televisions networks used to only compete with each other and now a whole new way of "tv" has taken over the market.
WSJ Article
I think it reasonably to say that many television or video-based companies are scared of Netflix. The company alone spent that amount of money to produce original content to capture more audiences and therefore more profits. There is no modern household that has no idea what Netflix is. They stream many on demand shows and new content of its own. It appeals not to just smaller children or young adults, but to much older audiences. Netflix will continue to grow larger and larger, so much so that other companies will not be able to do anything but slowly rot away.
ReplyDeleteJust like social media, blogs, and online articles have taken over magazines and newspapers, netflix is taking over the television media based category by a landslide. It's easy to use, modern, and you have access to multiple options of shows within a click of a button. It is a big threat to other television/ video-based companies, and like Sean said, its going to continue to grow and be even more successful than before.
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