Streaming video shows is nothing new, but with lower data plan rates and improved technology to both send and receive video, the race is on to take early control of the soon-to-be-extinct phrase “TV series” shows. One reason is that media research is showing a steep 25 percent decline in TV subscription in households by the end of the year. Another is that with each advancing year the shift moves towards mobile computing technology and away from cable-based entertainment. And 5G data streams are already in the works by the major carriers.
The early leader in the battle is Netflix — if you focus primarily on the Millennials. They have become the most important group because they have the current and future purchasing power when it comes to the technology and the content of streaming video series. What Millennials want is fewer rehashing of old shows and recycled big screen movies, and more original shows.
That is why Netflix crushes the competition in the early going according to one survey that asked which is of the major streaming sites — Netflix, premium channels (HBO, Showtime), Amazon, and Hulu — did they believe had the best programming. Almost 8 out of 10 Millennials chose Netflix. The premium channels category was a distant second at 14 percent.
But it is not only original series that separates Netflix but original movies. But we have to clarify what original actually means. Breaking Bad is by far the number one choice on Netflix at the moment, but is not “new” as it has been out of production for a few years. Orange is the New Black ranks in the top 10, and is Netflix’s own contribution to the original series list. But shows like Friends and The Office still rank high on Netflix, so viewers have not lost their sense of retro television history just yet.
One reason Netflix shoots to the top is because they also have invested a massive $7 billion in its programming. That is more than Amazon’s $4.5 billion commitment, which is saying a lot. Another is that the company has a commitment to make as much as 50 percent of its future content original, presumably moving away from much of its retro content which will likely fade away in another decade.
With such a wide gap in popularity, the question is whether any of the competition can catch up over the next five years. Not only is Netflix outspending the potential competition, they are out creating them, which is an X factor that may make Netflix the ESPN of series and movie entertainment for a decade. Programming content is the key factor in drawing new viewers, and as TV subscriptions continue to decline, the current destination for Millennials is Netflix.
Amazon and others can buy existing content and compete on the basis of price, speed, and picture quality, but what Netflix produces and owns is not likely to be available to them. The writers and producers of new shows will go where the money is, and if that place is Netflix you can expect their original creations to be among the best available anywhere. Even Disney is now rethinking their position towards Netflix. It seems that the only thing that get in the way of Netflix’s success is Netflix itself.
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