Friday, February 27, 2015

Netflix-House of Cards 3: New business model

The article "House of Cards has no advertising" gives me some idea about the new business model Netflix is adopting. Here is some of my thoughts on the new business model.

The House of Cards season 3 by Netflix released all episodes at the same time as it did before. Because of House of Cards, Netflix's subscribers, subscriptions fees and the stock prices all have all been increased in the past two years. 

Netflix was trying a new business model or was trying to create a new way of television viewing. Based on the huge success of House of Cards, which is the product of Netflix, Netflix's new way of television platform also lead to some discussion. Traditional television series released one episodes each week to catch customers' attention for the advertisement purpose. The more attention the show gains, the more advertising attentions customer will give to the airtime of the show. Traditional TV shows rely on this to generate revenues.



Netflix's new business model is a big step. No advertising (benefit) is associated with the high expectation show House of Cards. In my perspective, all it depends on is the quality of the TV series. On the other hand, the ultimate goal of Netflix is to attract subscribers, not only viewers for a particular TV program. Using this new business model, Netflix lost the opportunity to have control over the cost and charge of the TV program, that is to say, the traditional TV program can make changes to the charges based on the responses of viewers. Therefore, the future of Netflix is till not clear. 

The article I was reading can be found at http://blog.commarts.wisc.edu/2013/02/14/house-of-cards-has-no-advertising/

No comments: