As Todd Leopold writes in today’s CNN.com, “the streaming and DVD service [Netflix] knows what you’ve rented and streamed and how long it took you to watch. It knows what genres you like and what performers you prefer. Who knows? It may even have an idea whether you prefer your popcorn lightly salted or slathered with butter. (Don’t want the rest of the world to know? It’s also testing a privacy mode.)
It has taken this knowledge and managed to produce a few hits of its own — not just with audiences, but also within the industry. Netflix is having a moment. Its series, such as House of Cards and Orange Is the New Black, recently picked up 31 Emmy nominations. Wall Street approves of the strategy, having bid up Netflix’s share price 10-fold in the last five years.
And the audience? Netflix just announced it has cracked 50 million subscribers, more than double the number it had just four years ago. It has taken some old showbiz lessons — trust the creatives, budget them appropriately — and added some new twists: Binge-watching. Deep data mining. Exploiting the catalog as if there were nowhere else to go.
Can it maintain its dominance? It wasn’t so long ago that the place was posting losses and alienating customers. Pop culture doesn’t sit still, and neither does business. Netflix, which helped drive Blockbuster into oblivion, has to watch challenges from distributors such as Amazon and Hulu — not to mention stay friendly with content providers like movie studios.”