I was born netflix three times during the 20 years, the first breakthrough in 1997 as the company began to offer movies on DVD and mail delivery service to customers. And born again in 2007 after the launch of the broadcast on the Internet service for movies and finally the birth witnessed by all and heard it in 2016 with the launch of Ntfalaks services worldwide and expand services to more than 100 countries at once.
Really was the start of the company netflix when turned and focused its services on the launch of movies through the Internet and make them available to customers, helped by the spread and evolution of the Internet speed networks in addition to the acquisition of people's obsession tablets and mobile phones. This feature was a major factor in attracting customers and convinced the service, which the company promoted him to confirm that the content can see from anywhere and at any time, which is the opposite of what depends upon TV services in America that forced the client to pay the value of the private cable television to get the channels they want and it is confined to his schedule and is linked to your supply channel schedule.
And to make it easier for the reader keep track of the evolution of the company and the extent of its success in achieving its goals of increasing sales and increasing the number of subscribers will be in this article is the study of the period between 2010 and until the second quarter of 2016 results. It is a long period of somewhat occurred where the historic changes and drastic decisions in the company's march to that will be studied in three stages to make it easier for the reader to keep track of events and find out the impact of each period and its decisions on the progress of the company. The first period will be for the period (2010 -2012 m) and (2013 -2015) and 2016 alone. And it will explain the reasons for choosing this division later, note that it does not mean this division, compared the results between the three periods because the comparison would not be fair to the different time period, including in addition to the different circumstances of the company during the period of the analysis in this article. The goal here only study the impact of the decisions of the company in achieving its goals financially and numerically. The company is working on two parallel lines to increase sales and profits arose to expand the services to more countries, increasing the number of subscribers and add content production Ntfalaks adds exclusive feature her and her followers.
Phase I (2010 m -2012 m) the company during this period was launched for the first time outside the walls of America and this decision was very important in the spread of Ntfalaks and enter into new markets. The company launched a broadcast on the Internet in America service only lasted for three years of the period (2007 AD - 2009) In 2010, the company expanded its services to add Canada. In 2011, the company has expanded to add Latin American countries. Then in 2012, it was expanded to add five European countries. These expansions alone added to the treasury of the number of subscribers to Ntfalaks 13 million new subscribers since 2010 and even 2012 to be the total number of subscribers 33 million (6 million from outside the United States and 27 million within the United States). This addition of observers and expansion into new states did not add significant value to the corporate sales and continued sales in the range of $ 3 billion during this period. This of course reflects the geographic expansion of the company alone would not serve the company's profits will not support dramatically.
This shock that I got after the expansion of the company in many countries make it Ttrat the issue of expansion in adding new countries during the year 2013, which resulted in only add a single state which is the Netherlands. But in 2013 Ntfalaks entered the second phase (2013 -2015 AD), which produce their own programs and change the shape of soap operas show entirely! In 2013 the company launched the famous drama series House of Cards and then the series Orange is the new black, a fact first breakthrough for the company in the production of its own programs and before going into the following years 2014 and 2015. Why these are added to the series have Ntfalaks within one year of their release? Sales increased until I was four and a half billion dollars, a figure that almost has not received previously the company's sales with geographic expansion in addition to the number of subscribers during the first phase the whole increased 13 million subscribers. While in 2013 alone the number of subscribers increased 10 million subscribers. The number of subscribers to reach 44 million subscribers overall (33 million of them from America, 11 million from outside the United States). This particular year, it shows the effect of changing the thought Ntfalaks relying on a series of its own production in order to that in 2013 is not expanding, but one state only, however the number of subscribers increased 10 million making it the faith that the strong influence of increasing followers was exclusive series have that produce them, and specifically the series of House of Cards to gain from a big world renowned thanks to the plot of the story and find him before my hero roles of the series.
During the remaining years of this stage netflix launched a new series in 2014 and 2015, the most famous of Marco Polo and Marvels Daredevil, Narcos also expanded again in 2014 and 2015, adding more than 10 countries between European countries and East Asian. During these two years, the company merged the geographic expansion policy, in addition to increasing its exclusive production and has had a significant positive impact where the number of subscribers in total to reach 75 million subscribers in 2015, compared with 44 million subscribers in 2013. It means adding 31 million in just two years, a large number the company did not achieve such an increase in the percentage of subscribers previously.
After netflix experience in the first phase of geographic expansion alone and exclusive production experience alone in 2013 after the merger between the two fight experience in 2014 and 2015. Ntfalaks opened the appetite to re-experience of 2014 and 2015, but more and larger! It is the third phase in this article, which covers the first quarter and the second quarter of 2016. Azmat Ntfalaks to open up to the whole world almost by providing services to more than 130 countries at once and promised its investors that it will launch a total of 600 hours during the year 2016 of the exclusive production of the Series on its network at a rate of 45 minutes per episode as is customary in the episodes, it means 800 new episode . During just one year, and these are very large numbers are theoretically supposed to jump and profit of the company and the number of subscribers to higher levels than in the previous stages.
It came the first quarter results are very positive in terms of the number of subscribers jumped number of participants to about 7 million new subscribers to reach 82 million subscribers 0.34 million subscribers were from outside America. This increase in three months, double the increase that was obtained by netflix in the previous two years, where he was average added a million and two hundred thousand subscribers a month, while in the first quarter amounted to a monthly rate of 2,000,300 thousand subscribers. Personally, I was expecting that during the first quarter the number of subscribers will increase quite significantly and then drop the rate of increase in the second quarter significantly. This generates the impression I have after subscribing experience in Ntfalaks when launching the service in Saudi Arabia within the vast geographic expansion plan. An overwhelming majority of new subscribers Ansdmoa the content of private libraries in their countries to discover new joint that Ntfalaks library content from movies and soap operas in America, for example, larger than that in Saudi Arabia, a library, a frustrating is where a large part of the library content in several countries of the added countries recently content Old for fans of movies and already has seen for a long time. After this frustration spread among new subscribers around the world, the so-called Plan B which is to circumvent the system by changing the state netflix site using a VPN or DNS for the customer can browse our video library of any country of his choice, especially the American Library. This option some impressed and continued it. Others did not suits him and the reason that the cost of participation has increased to nearly almost doubled the monthly then entering the Ntfalaks almost 10 dollars in addition to the subscription cost or VPN DNS service from another provider to become a monthly total cost between 15-20 dollars monthly. In addition netflix announced that it will close and prevent any attempt to circumvent such as what you can technically.
This shock to the new entrants have made the company feel mistake that could destroy the dreams of the Rosary size so you promised to developing and expanding libraries for the new countries over time. So there was no recent sufficient enthusiasm among observers of the news Ntfalaks added in the new states to participate Ntfalaks services, which is reflected clearly lower percentage increase in subscribers and sufficiency added 1,000,700 thousand subscribers only during the second quarter of the entire year of 2016! At the monthly rate (566 thousand subscribers a month) which is much less than the monthly average obtained by the company in the first quarter figure (2,000,300 thousand monthly) which reflects the negative situation that prevailed interested netflix services. The shock of the number of subscribers during the quarter translated immediately by falling share price after the announcement of the US market by about 13%, which reflects investors' Rose did successfully and trust company.
Why the big expansion so far failed? We can not say for sure failure netflix experience global expansion based on the first quarter results and second only. But as an analysis until this period can be summarized reasons for failure by several points, 1. difficulty expanding libraries in all countries of the different property rights and contracts that Ntfalaks associated with the with the main owner of the content, and this applies to soap operas and films produced from non-Ntfalaks companies which made the libraries content in added states Old recently and is encouraging the continuation of the subscription. 2. States that Ntfalaks expanded in the years preceding 2010 to 2015 were often those that have high system and sanctions deterrent to the issue of property rights, which prevents the spread of dependence on illegal ways to watch movies so have the citizens in these countries to participate in the official services offered his content legally. In addition to television channels it is free in these countries, which forced citizens to pay high monthly subscription value for the cable TV and when compared to material cost see that the cuff tilted too much in favor of netflix by virtue of very low-cost, taking into consideration the content and the differences between them. 3. States where Ntfalaks expanded in the recent expansion of a very large number of countries where there were several problems involving either the Internet service which is good for allows you to view content without the broadcast stopped by watching or that there is no system and the law of a deterrent to the issue of intellectual property rights Vtjd adoption of many of the watch movies and serials for free illegally.
What about China? China is definitely a difficult number can not be ignored in any industry was the entry and success in the Chinese market means a lot for any company milestone in its financial results and considered. What netflix still trying to enter the Chinese market, but they seem to have problems with that. China is a difficult market by virtue of the nature of the Chinese there. Vachinyen known for their love for the tradition of anything universally known and reproduced completely Chinese mold, and we saw this in several social networks, where they designed their own social networks in addition to the famous site Alibaba It is similar to services Amazon almost Chinese people are loves that simulates the idea of existing and does with making of a new industry Chinese 100%. This raises the question Do you accept the entry of Chinese netflix them or that they will, as is their habit industry a new company simulates netflix so not be able to compete in the Chinese market since the beginning. In addition to films and serials English it is possible to find a global wide in several countries, but the Chinese would prefer to fame Thakihm films in their own language and be close to the Asian culture away from American culture. Can you netflix production Mlesslat tray be at a high level position to attract Chinese scenes have when they enter the market?
Hallmark House of cards and serials at once!:
This series was not just a service netflix services, but it was a turning point for the entire company, which can be seen when the company wrote to investors that reads
And mean by that day when the famous drama series will be launched. In addition netflix changed the presentation of the series the way for the first time in the history of the modern soap operas known to the descent of the rings gradually. So I wrote to investors netflix
netflix taken a different policy for its television channels to ask serials rings in batches usually episodes every week. So they look different netflix which they are asking the whole series at once the client to benefit from watching the series as he wishes whenever he wishes. This feature is both positive and negative at the same time. Positive because it is a beautiful experience for the customer to get the whole series at once. But the big passivity on the company over time as follows: the current contribution system in netflix allows subscribers subscribe and unsubscribe without a direct correlation long-term contract, such as a year or six months. This means that the possibility of joint partnership in the month that is thrown Mslslath they want and then view all cancel the subscription without having to pay monthly throughout the year. This will make the company's future in front of two options. Either change the way subscription so that there is minimum subscription 6 months or more to ensure the continuation of the joint for a longer period. netflix or be forced to distribute the new seasons of its series so different 12-month period covers at a rate per month season at the very least so that they can attract the customer for as long as possible during the year. This option is costly financially dramatically I do not think that the company can play in the next short period of time at least.
Netflix and her competitors?
It seems that the reputation preceded netflix as they say, the multiplicity of competitors to Ntfalaks, we note that the majority sometimes do not know the names of the competitors netflix reflecting Ntfalaks control and overwhelmed on the scene yet. The peek of the most important names that offer similar services and very close to the netflix is Amazon veido and Hulu. netflix said in a report to investors, the company's pan it limited the top 200 movie and the series in a bouquet netflix and compare it with the existing library Amazon and Hulu as a kind of comparison with competitors. It found that Amazon has nearly 97 name only from the list of the top 200 among netflix . Hulu and much lower. This is a practical example of the manipulation of figures to tip the opinion that you want. Because equitable in this case would be if netflix chose the list of top 200 films of neutral site by voting viewers like IMDB and then compared the number of names contained in its library with the rest of the competitors for the same menu.
netflix has also introduced the report shows the percentage of the acquisition in the United States alone, according to the volume of data downloaded the rate was nearly 35%, while 4% Amazon and Hulu 3%. After the recent global expansion of netflix seems that the difference between them and the competitors will increase or less cockeyed delay from the time they need to reach for the same spread that has done netflix .
Eventually netflix great success in the production of serials exclusive have succeeded and were on the high quality and the plot and the performance of the fortunes of the company level will be very great if continued to expand production exclusive of their series, which the rug would withdraw from the traditional TV control In addition, the company needs the expansion of its ideas from the get the live broadcast of the world matches or major events around the world. Because the exclusive production of Ntfalaks seems to be a positive influence is greater than the geographical expansion alone. The remains of this analysis to measure the impact of the expansion during the first and second quarters will be fair to append analysis when issuing Ntfalaks statement report fiscal year 2016 with the beginning of 2017 for the full year are compared with previous years.
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