{"id":206,"date":"2018-01-23T16:42:07","date_gmt":"2018-01-23T21:42:07","guid":{"rendered":"http:\/\/blog.richmond.edu\/mgmt340-03\/?p=206"},"modified":"2018-01-23T16:42:07","modified_gmt":"2018-01-23T21:42:07","slug":"netflixs-decisions-and-payoff","status":"publish","type":"post","link":"https:\/\/blog.richmond.edu\/mgmt340-03\/2018\/01\/23\/netflixs-decisions-and-payoff\/","title":{"rendered":"Netflix’s Decisions and Payoff"},"content":{"rendered":"

Netflix\u2019s Decisions and payoff<\/span><\/p>\n

http:\/\/www.bbc.com\/news\/business-42779953<\/span><\/p>\n

https:\/\/www.cnbc.com\/2018\/01\/23\/netflix-2018-marketing-budget-to-hit-2-billion.html<\/span><\/p>\n

This past October, netflix began informing its viewers that starting in 2018, it would be raising its rates.Many skeptics believed that as a result, they would lose a lot of viewership, as people would cancel their subscriptions as a result of the increased pricing. Except, Netflix had a very different idea in this scenario: after its start in producing original content (and its overwhelming success), they would use this additional revenue in order to fund the creation and production of more original content. <\/span><\/p>\n

The skeptics have seemed to undervalue the impact and avid viewership that the original content has had on Netflix\u2019s growing popularity. Just in 2017 alone, viewership was up 9% compared to 2016. Better yet, Netflix reported today (1\/23) that in the past 3 months alone, the number of subscribers has increased by more than 8 million world wide (2 million exclusively in the United States alone). <\/span><\/p>\n

The concept of creating original content that can only be exclusively found on their platform makes it so that people are now somewhat dependent on paying their monthly subscription in order to keep up with their favorite shows that can only be found there. Netflix understands that it is very often the original content that keeps people coming back, so they knew that raising the rates was not going to have that much of a negative impact on their revenue for 2018. At the same time though, they are continuing to focus on growing- they have already made plans to put $8 billion into creating more new shows.<\/span><\/p>\n

This decision to move towards creating their own shows and movies (and the accompanying success) hasb not gone unnoticed whatsoever- Disney currently has plans to remove all of its programming down off of Netflix in the upcoming year in order to attempt to create their own streaming platform. Yet, netflix does not seem to be too nervous.<\/span><\/p>\n

They are the exclusive owners of their own content and know that people will continue to subscribe just exclusively to watch the newest episodes of different shows that can not be found elsewhere. Additionally, they continue to work to expand their initial viewership of these shows in order to hook new clients, by working with internet and cell phone companies and offering either a month or so for free with a purchase, or including a subscription in with monthly plans. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Netflix\u2019s Decisions and payoff http:\/\/www.bbc.com\/news\/business-42779953 https:\/\/www.cnbc.com\/2018\/01\/23\/netflix-2018-marketing-budget-to-hit-2-billion.html This past October, netflix began informing its viewers that starting in 2018, it would<\/p>\n","protected":false},"author":3717,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[71160],"tags":[],"class_list":["post-206","post","type-post","status-publish","format-standard","hentry","category-making-decisions-defining-process-strategy"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/users\/3717"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/comments?post=206"}],"version-history":[{"count":0,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/posts\/206\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/media?parent=206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/categories?post=206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.richmond.edu\/mgmt340-03\/wp-json\/wp\/v2\/tags?post=206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}