Netflix has been growing rapidly over the past few years. With an annual revenue of 8.83 USD in 2016, surely it surprised a lot of people both inside and outside of the media and entertainment industry. I realized its potential in changing the advertising schemes of many companies that currently advertise on television.
When Netflix was released, I was not aware of the impact that it would make today. I grew up watching television and one of my favorite channels was Starworld. I don’t think they have it here in Australia but that channel has like 10 of my favorite tv shows including Masterchef and American Idol. But between my favorite tv shows were these annoying ads that come from cars advertisement to travel packages and even cleaning products. I was not a fan of these ads.
Years after that I went to Melbourne for my bachelor degree and here I am renting an apartment with my friend without having any cable for my television. Then I heard of Netflix and how you can watch any movies online and you only need to pay monthly subscription fee. I was intrigued and immediately sign up for it because its practical, cheap and most importantly it doesn’t have any of those annoying ads. Then it hits me, if more and more people are moving from home television to online, will company still advertise television or will they move online. And if they move, will television channels be profitable when most of their revenue are from those advertisements.
I did a little research and found that there are currently 93.8 million subscribers on Netflix. In 2015, the number of hours Netflix users watched is 42.5 billion streaming hours (equivalent to 100 million hours per day). I also found that if you only watch Netflix for a year and no television, there is an estimate of 160 hours of ads that you avoid. This is a big deal because more and more people are moving online and television ads are being viewed less.
I know that television still has a great impact on the society, but I think companies that advertise their products through television should start developing strategies to move to online media. Because personally, i think that online media will be the future and any advancement we see today might be obsolete in 10 years time.
So what do you guys think? Should companies start to develop means to advertise their products through an online platform like Netflix? or should they stay in the television industry where they currently make lots of money? Feel free to comment on my blog and let me know what you think. Thank you 🙂