Sarandos said there’s room in the streaming space for new competition.
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As some third parties pull their content from Netflix to use on their own OTT platforms, the company has worked over the past seven years to make sure there is “a steady pipeline of great programming on Netflix, regardless of what happens in the rest of the world.” Netflix spent more than $8 billion on original content this year, and Sarandos said he expects the company to shell out even more money going forward.
Unlike broadcast and cable networks that target specific demos, “we are programming to every taste,” Sarandos said.
When Netflix launched, Blockbuster (a global chain of video stores where customers could go and rent videos in store) was their biggest competitor.
It took Blockbuster years to start offering a similar service as Netflix was already doing.Netflix dominated the television industry in 2018 as the streaming service grew to more than 137 million subscribers worldwide, snapped up TV’s biggest creators like Ryan Murphy and Kenya Barris and prompted big media companies like AT&T and Disney to prep their own OTT offerings.It has even bigger plans for 2019, as chief content officer Ted Sarandos revealed at UBS’s 46th Annual Global Media and Communications Conference in New York today.It all began in April 1998, when Netflix started renting out DVD’s by mail.Only a year later Netflix changed its pay-for-use model into a subscription model.They started with renting boxed products through a mail service nationally (in the US) and shifted to delivering on-demand entertainment catering to diverse needs globally.The ‘all you can eat subscription’ that Netflix offers, lets you watch your favorite shows anywhere and at any time you want.Nearly a decade later, Netflix changed their proposition to a streaming service, which changed the way millions of people spend their free time.There are new entrants in the market, such as Amazon Prime, Hulu Plus and Facebook Watch, yet Netflix is by far the leader, serving 125 million customers and generating 11.7 billion in revenues in 2017.They had the foresight to take the leap and their vision was right: eventually 95% of all households had a DVD player!The first business model was to let people rent videos by selecting it online and having it delivered to their door.