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Netflix Reaches for Global Domination With 60 Million Subscribers

Wednesday, January 21st, 2015

Why is this man smiling? Reed Hastings, CEO of Netflix.

As Dan Frommer reports in Quartz, “Netflix finished last year with 57.4 million subscribers, up 4.3 million from the third quarter—its strongest subscriber growth all year. Fourth quarter revenue reached $1.48 billion, in line with what analysts were expecting and up 26% year-over-year. Netflix added more streaming subscribers outside the US (2.4 million) than in its home country (1.9 million) for the third quarter in a row. Netflix expects to pass 60 million members for the first time this quarter, finishing Q1 with 61.4 million subscribers worldwide.

The takeaway: Netflix’s international expansion is starting to work. In the company’s Q4 letter to shareholders, CEO Reed Hastings noted that overseas growth exceeded expectations, and the company is now expanding faster than previously anticipated: ‘Our international expansion strategy over the last few years has been to expand as fast as we can while staying profitable on a global basis. Progress has been so strong that we now believe we can complete our global expansion over the next two years, while staying profitable, which is earlier than we expected. We then intend to generate material global profits from 2017 onwards.’

Australia and New Zealand are up next. Hastings says Netflix is still considering its options for China—’all of them modest. With the growth of the Internet over the next 20 years, there will be some amazing entertainment services available globally,’ Hastings wrote. ‘We intend to be one of the leaders.’ What’s interesting: Hastings no longer blames Netflix’s US price increase earlier in the year for its slower subscriber growth. ‘We’ve found our growth in net [subscriber additions] is strongest in the lower income areas of the US, which would not be the case if there was material price sensitivity. Additionally, we implemented a similar price change in Mexico during Q4, and saw no detectable change in net additions.’”

And meanwhile, as this chart from the same article demonstrates, physical media, such as DVDs and Blu-rays, are declining in popularity just as fast as Netflix’s streaming service takes off. So if there’s a particular film that you want in a permanent copy, or at least a semi-permanent copy, I would move quickly now and buy the DVD. Already, Netflix’s offerings are skewing much more heavily to Hollywood pop culture titles, while the Criterion collection streams on Amazon, which offers a much more eclectic selection of classic and foreign films. Netflix is for mainstream movies – it will probably replace theaters for the vast number of viewers within the next ten years – and then DVDs will vanish.

Soon Netflix and Amazon will be the only games in town.

Netflix and National Cinemas

Monday, August 25th, 2014

I have a new article in Film International, on the effects of Netflix on national cinemas.

As I write, in part, “People would much rather watch from the comfort and safety of their living rooms than trek out to the theater for anything other than the most immersive spectacle; the clearest evidence of this is the complete collapse of video rental stores, even in such major cities as New York, a metropolis of eight million people, which seemingly can’t sustain more than few revival houses, and only one or two video rental locations, even though they offer the kinds of films you’re not likely to find on Netflix.

Why go out when you can have the images delivered with a touch of a button? Why bother to seek out anything new when there’s seemingly so much product – all of it pretty much the same, even the supposed ‘indies’ – available on demand? You don’t need to do any exploring. We’ll do it for you, and not only that – we’ll put the films in nice little slots like ‘foreign’ or ‘indie,’ thus ensuring a miniscule audience. Along these lines, the Amazon ’suggestion’ feature on their website continues to amaze me, because of its utter lack of discrimination.

If you order one DVD of a French film, suddenly they recommend nothing but French films for you; order one Barbara Stanwyck film, and they think you’re only interested in films in which she stars; order a gothic thriller, and you’re inundated with offers for like material. Erase all of these possible options, and the suggestion engine comes up blank – it can’t figure you out. How come you like so many different kinds of films? Where’s the thread here that they can track? Why won’t you stick to a predictable pattern? And why do you want a DVD anyway, when there are these great films to stream, so easily, at the touch of a button?”

You can read the entire article by clicking here, or on the image above.

Amazon’s New “Never Before on DVD” Store

Friday, May 25th, 2012

As has been widely reported, most notably by Marc Graser in Variety, Amazon has just launched a new “never before on DVD” movie service, featuring some 2,000 titles that studios don’t feel have enough traction for commercial release, but which have enough interest for cineastes and collectors to purchase on a made-to-order basis, much like the titles offered through the successful Warner Archive service.

In this case, a consortium of studios have decided that it’s more cost-effective to let Amazon do the retailing, rather than opening their own divisions, a la Warner Archive’s service; the studios involved include Disney, Sony, Warner Bros., Lionsgate, Universal, 20th Century Fox and  MGM. The real surprise here for me is Disney, who are notoriously protective with their back catalogue.

Many of these titles will be of no interest to readers of this blog, as you can see from the image above; TV shows, mainstream commercial fare and the like dominate the offerings. But hidden in the stacks are some films of real merit, so readers should check it out for themselves and see what’s of interest. Most of these titles were previously available, and still are available, as streaming video on Amazon, but now you can get them in a more stable format. So take a look, and see what’s on offer.

Of course, with only 2,000 films or so for sale, that means the vast majority of these studios’ films are still locked away in a vault somewhere, and this is just a drop in the bucket. Between them, the studios mentioned above could easily put some 20,000 or even 200,000 films up for potential buyers, and why don’t they? Since the discs are made-to-order, what have they got to lose? I guess that’s the only downside to this announcement; while it’s nice that 2,000 titles never before on DVD will now see the light of day, one should never forget that there are literally hundreds of thousands of films yet-to-be-released, still waiting in the wings.

You can read Marc Graser’s piece in Variety by clicking here, or on the image above.

About the Author

Wheeler Winston Dixon

Wheeler Winston Dixon, Ryan Professor of Film Studies at the University of Nebraska-Lincoln, is an internationally recognized scholar and writer of film history, theory and criticism. He is the author of thirty books and more than 100 articles on film, and appears regularly in national media outlets discussing film and culture trends. Frame by Frame is a collection of his thoughts on a number of those topics. All comments by Dixon on this blog are his own opinions. To contact Prof. Dixon for an interview, reach him at wdixon1@unl.edu or wheelerwinstondixon.com

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