- They explain that “Netflix costs $0.09 per hour of viewing, while a typical pay-TV costs $0.30 an hour.” Netflix thus leads significantly in terms of “price per hour of entertainment.”
- Company has left Amazon and Sky trailing in online entertainment sector – notching up 5m UK subscribers – and plans to spend $5bn on original content.
- In a note last week, the analysts outlined the case that an “over-the-top” (OTT) powerhouse like Netflix might have to actually acquire an established studio at some point in the future, simply to continue in the arms race for content.
- Right now, when Netflix puts out an “original,” it doesn’t usually produce the show. Lionsgate Television, for instance, makes "Orange Is the New Black." Netflix then pays for a global license.
- The typical British TV viewer watched about 77 minutes a week of shows on subscription video-on-demand services, primarily Netflix and Amazon Prime, in 2015.
MEDIA MAGAZINE MM34:
- Most of us haven’t even noticed, never mind reflected on, the rapid ‘obsolescence’ of our mobile phones.
- ages. From programmes such as Coronation Street, launched in 1960, through to EastEnders, first screened in 1985, the family would be brought together to watch the characters live out their lives on screen.
- Due to technological and media development this began to change. Not only did the number of channels increase, offering chances for repeat scheduling, but the number of televisions in the home also increased. Family members could now watch soaps at different times and in different rooms; the audience had become fragmented. Entertainment no longer brought the family together.
- The internet offered a new platform for television to reach its audience; with the launch of media services such as the BBC iPlayer in 2007, audiences could now choose to watch episodes of EastEnders anytime up to seven days after its first play on BBC. Audiences no longer needed to be at home to consume their favourite show
- By 2009, the iPlayer had become extremely successful with over 5 million unique streams per week. 86% of these stream requests came from desktop users. Clearly, much of the television audience was no longer in front of a television.
- With products such as the iPhone offering multiple devices in one, the audience has come to expect ease and accessibility.
- Now we not only choose when but also where we consume our entertainment; this has been made possible through portability, arguably the most important advance in technology over recent years, as consumers can have a phone, camera, television, and internet connection all in their pocket.
- A comment made by Eric Huggers, the Director of Future Media and Technology at the BBC: "Whether it is watching EastEnders in your lunch break, listening to Desert Island Discs on the bus or watching Mock the Week in bed, viewing patterns change depending on the time and location of the audience."
- Over-accessibility may change why the audience chooses to consume in the first place; where once there was a desire to see something that was a novelty and share it with friends and family members, the audience now constantly demands something new, and often watches it in isolation.
- Our views are no longer shared there and then, but exchanged over social networking sites, or via feedback left on the website forums.
- "So are we now watching simply because we can, rather than because we want to?"
The basics
Your chosen industry: Film / TV
Your chosen case study (i.e. text/institution etc.): Netflix
Audience
1) How has new and digital media changed the audience experience in your chosen industry?
New and digital media has meant that audiences are now able to access a huge range of movies and tv shows through the access of the internet. It has meant that users can now stream movies with the click of a button in the comfort of their own home. Netflix was one of the first Movie Streaming institutions to enter the market. Although it doesn't publish brand new blockbusters, it has created an alternative from traditional DVD and Blu Ray as more dated movies will most likely be available to stream and watch from Netflix. Also, users can now watch a range of TV box sets through the application, also drifting customers away from purchasing DVD box sets. Netflix now produces its own TV shows and movies which can only exclusively be viewed by its subscribers, therefore it may now be a threat for traditional tv channels and institutions like ITV, BBC & Sky.
2) Has new and digital media changed the way the audience consume your chosen product?
Yes, as Netflix can be consumed in a range of methods such as through your own smartphone, smart tv, tablet, games console or laptop/pc. Netflix also has caused a threat for TV viewers as more and more people are starting to use their laptops as "Tv Screens". Which may be putting small screen TV's and bedroom TV's at a risk in the market. use. Most of us haven’t even noticed, never mind reflected on, the rapid ‘obsolescence’ of our mobile phones.
3) Has the size of the audience changed as a result of new and digital media?
No, i believe that the size of the film audience is still the same, its only changed the way the audience consumes film and where they get their movies from.
4) What are the positive changes new and digital media have brought to the audience of your case study? (E.g. greater choice, easier access etc.)
New and digital media has caused for much more of a greater easier access for audiences, they can now keep up to date with their TV Shows and Movies on the fly and instantly. New technology such as smartphones and 4G cellular internet has meant that users can now get the speed of home wifi on their mobile devices wherever they are, therefore streaming high definition TV and Film has never been easier and quicker.
5) What are the negative changes new and digital media have had on your chosen audience? (E.g. quality of product etc.)
The negative changes is that
6) What about audience pleasures - have these changed as a result of new and digital media?
7) What is the target audience for your chosen case study? Write a demographic/psychographic profile.
Institution
1) How has new and digital media had an impact on ownership or control in your chosen industry?
New and digital media has meant that industries like Netflix & Amazon Prime now have ownership to their own Tv Shows and Movies as well as licensing other products for users to stream.
2) What impact has new and digital media had on ownership in your chosen case study?
More and more people are now streaming their TV & Movies as oppose 3) How has new and digital media changed the way institutions produce texts?
New and digital media has meant that Netflix now create their own texts although most of the texts they produce are rather similar such as documentaries like making a murderer and Narcos.
4) How has new and digital media changed the way institutions distribute their product?
Institutions now use mobile marketing and advertising and also industries like Netflix allow for free trails of their services. They save your payment method for the first month with no cost, if you wish to not cancel they will automatically take payment, this has meant to a lot of controversy and also people violating the use of the free trail.
5) How might new and digital media threaten your chosen industry?
New and Digital media can threaten the film industry as a whole as it may mean that more and more people would prefer to stay in and "netflix and chill" as to going out to the local cinema for a movie. Also, there are some movies that have premiered exclusively to netflix or showcase first before being released in the cinema. "Netflix already changed the television landscape, and some would say for the better. Not only do they produce high quality television shows featuring A-list actors (House of Cards), they have also rejuvenated once-cancelled shows like Arrested Development. On top of that, Breaking Bad creator Vince Gilligan is convinced Netflix is the reason their show remained on the air – because people had access to former seasons and were able to binge-watch, keeping the show relevant."
Hollywood studios feel the need to produce big budget thrillers to reach theatre audiences, but a sophisticated and challenging movie that doesn’t necessarily have an enormous audience could still reach a large amount of people on a streaming platform, said Posner, who also is a writer for the FX original series “Married.”
UGC
1) What examples of user-generated content can you find in your case study?
As netflix doesn't just publish high big budget films to stream, they also publish more low budget successful amateur movies, benefiting the film industry as it is giving new and fresh film makers a chance for its movies to hit a mass audience.
Marxism, Pluralism and Hegemony
1) What would be a Marxist perspective of the impact of new and digital media on your chosen case study?
2) How would a pluralist view the impact of new and digital media in your chosen industry?
3) Are there any examples of hegemony in your chosen industry or case study?
Globalisation
1) How has globalisation impacted on your chosen industry or case study?
Netflix surprised Wall Street this week with an aggressive new target: It plans to grow its global footprint to a whopping 200 countries within the next two years. And, the company, claimed, it can do so while maintaining profitability.
Blockbuster was the dominant firm in the industry and employed nearly 60,000 employees at more than 9,000 stores at its peak in 2004. But in the last decade, employment in the video/disk rental industry has collapsed from 153,000 jobs in 2005 to fewer than 11,000 in May of this year – that’s a 93% decrease in a decade! That could arguably be the largest percentage employment decline in any US industry over the last decade — even employment in the newspaper industry hasn’t cratered nearly that fast over the last ten years!
2) In your opinion, has globalisation had a positive or negative impact on your chosen industry and case study? Why?
3) Can you find examples of cultural imperialism in your case study or industry? (The 'Americanisation' of the world)
Social media
1) How has your industry or case study used social media to promote its products?
2) Provide examples of how your case study has used social media and explain the impact this would have on audiences.
3) Is social media an opportunity or a threat to your industry and case study?
Statistics
1) What statistics can you find to illustrate the impact new and digital media has had on your industry or case study? For example, in news, the UK newspaper industry sold more than 12m copies a day in 2001 but in 2014 it was below 7m.
"Netflix is an amazing digital success story. Starting out almost 15 years ago as a predominantly DVD subscription service, Netflix was able to pivot along the way and take advantage of rapidly evolving mobile technology and ever-improving internet speeds to become one of the largest video distribution networks on the planet."
Netflix’s net income: $122.64m
Number of U.S. subscribers to streaming services: 33.42m
Number of subscribers in UK and Ireland: 1m
U.S. customer satisfaction with Netflix index score: 76
Netflix is having a huge impact on Australia's internet infrastructure, with some claiming it is leading to slower, congested internet speeds during peak evening use periods.During Friday night, traffic peaked at about 13 gigabits per second. On Sunday it peaked again at about 11Gbps at the same time.For context, search engine Yahoo peaks at about 0.8Gbps on IX Australia's network and Microsoft about 2Gbps (although this goes up when software updates are released).Overall, the increase has seen the traffic IX Australia passes through its network jump 50 per cent - from 30Gbps to 45Gbps in recent days (and it's still growing).Peering traffic — traffic exchanged between networks like Netflix and an ISP or an ISP and another ISP — for AARNET and M2 has jumped more than 100 per cent since Netflix launched.Prior to Netflix's launch, AARNET was typically seeing 1Gbps of peering traffic traverse its network during peak periods. That's now jumped to 2.5Gbps thanks to Netflix.
- 61% of Netflix users binge-watch shows at least every few weeks
- Average amount of data that is consumed by Netflix subscribers monthly: 45gb
- Percentage of Netflix users that have engaged with Netflix original content: 90%
- Estimated amount of commercials that Netflix subscribers aren't watching because they aren't watching broadcast TV: 130 hours of commercials per year
2) Looking at these statistics, what impact has new/digital media had on institutions in your chosen industry?
New and Digital media such as streaming applications like netflix has allowed for a slight decline in broadcast TV. This is because a lot of consumers prefer to watch their TV shows and movies through their own devices where ever they go and they can choose what to watch when they want, it has allowed for more easier access. Also, we live in a age where more and more people may not have "time" to sit in front of the Tv, therefore they turn to netflix when they do have the time. Also, Netflix has caused the instinction of the DVD business as it put a former large institution Blockbuster out of business, Blockbuster once had the chance to buy Netflix for $50 Million, it is now worth billions.
Theories
1) What media theories can you apply to your chosen industry and case study? Select THREE media theories and explain how they are relevant to your case study. Note: these can be ANY of the theories we have learned over the whole of Year 12 and 13.
The success of Netflix is an excellent example of “creative destruction,” a term originated in the 1940s by economist Joseph Schumpeter, who described it as the “process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new structure. This process of creative destruction is the essential fact about capitalism.” In fact, Netflix has been so disruptive to existing industries, that its impact is now being referred to by some as the “Netflix effect.” Here are a few examples of the “Netflix effect” and the industries that have been “Netflixed.”
Issues/debates
1) What media issues and debates can you apply to your chosen industry and case study? Select THREE media issues/debates and explain how they are relevant to your case study.
Wider examples and secondary texts
1) What other texts or institutions are also relevant to your case study? What would be good secondary texts or examples to use to support the findings of your independent case study?
