Why Netflix Isn't Worried About the Streaming Wars. P2-3
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Community Community Millennials, Off icial gig economy opening of P4workers and P16 B-lounge corporate brings music, high-flyers are entertainment and all suff ering fusion cuisine for from burnout. people in Qatar. Friday, October 11, 2019 Safar 12, 1441 AH Doha today: 290 - 360 COVER STORY Net math Why Netflix isn’t worried about the streaming wars. P2-3 CUISINE SHOWBIZ Cakey pumpkin cookies, No heart attack can a must for fall baking. stop Kevin Smith. Page 6 Page 15 2 GULF TIMES Friday, October 11, 2019 COMMUNITY COVER STORY Netflix and the streaming wars PRAYER TIME Fajr 4.13am The company faces an existential challenge from a new Shorooq (sunrise) 5.32am Zuhr (noon) 11.22am Asr (afternoon) 2.43pm crop of rivals determined to beat it at its own game. Maghreb (sunset) 5.12pm Isha (night) 6.42pm Next month, Apple and Disney will launch their USEFUL NUMBERS streaming platforms, followed by WarnerMedia and NBCUniversal next year, writes Wendy Lee Emergency 999 Worldwide Emergency Number 112 Kahramaa – Electricity and Water 991 Local Directory 180 International Calls Enquires 150 Hamad International Airport 40106666 Labor Department 44508111, 44406537 Mowasalat Taxi 44588888 Qatar Airways 44496000 Hamad Medical Corporation 44392222, 44393333 Qatar General Electricity and Water Corporation 44845555, 44845464 Primary Health Care Corporation 44593333 44593363 Qatar Assistive Technology Centre 44594050 Qatar News Agency 44450205 44450333 Q-Post – General Postal Corporation 44464444 Humanitarian Services Offi ce ’ (Single window facility for the repatriation of bodies) Ministry of Interior 40253371, 40253372, 40253369 Ministry of Health 40253370, 40253364 Hamad Medical Corporation 40253368, 40253365 Qatar Airways 40253374 ote Unquo Qu te “Life is really simple, but t a downtown coff ee shop in 1997, Netflix is in a much Marc Randolph and Reed Hastings we insist on making it more difficult wondered: Could you mail a DVD and complicated.” have it arrive unbroken? situation than it’s To test the idea, the friends Adropped off a disc at the post offi ce across the — Confucius ever been. It’s a lot street and mailed it to Reed’s home nearby. To their surprise, the disc arrived undamaged, an more competitive. It’s experiment that soon led to the birth of a scrappy start-up now known as Netfl ix. choppy waters. Netfl ix, a name that combines the Internet and movies, was once such an improbable idea that Randolph’s wife thought, “that will never work,” Community Editor — Brahm Eiley, inspiring the title of his recently released book. Kamran Rehmat The company not only worked, it worked president of the beyond their wildest dreams. It would eventually e-mail: [email protected] revolutionise TV, herald the era of binge-watching Telephone: 44466405 Convergence and upend Hollywood’s long-established order. Fax: 44350474 Netfl ix poured vast sums into original TV series Research Group and fi lms and became the undisputed king of ’ streaming, with more than 151 million subscribers Friday, October 11, 2019 GULF TIMES 3 COVER STORY COMMUNITY in nearly 200 countries. Now the Los Gatos company faces an existential challenge from a new crop of rivals who “I think the bigger are determined to beat it at its you are, the more own game. Next month, Apple and Disney will launch their distractions you have streaming platforms, followed by to your core business, WarnerMedia and NBCUniversal next year. the more likely you Investors have grown skittish can’t move as quickly about the looming competition. Netfl ix shares, which closed last as we’ve been able to Tuesday at $270.72, have fallen through our history. nearly 30% since the company reported that it lost 126,000 The new set of subscribers in the US during the competitors is second quarter, its biggest decline since 2011. While revenue rose 26% actually just the old to $4.9 billion the second quarter set of competitors” compared with a year ago, net income dropped 30% to $270.65 million during the same period, according to a fi ling. — Ted Sarandos, Netfl ix’s domestic business Netflix’s chief is slowing at a time when legacy media companies are determined to content officer seize control of lucrative shows that have helped fuel Netfl ix’s success and lure subscribers to their own services. “Netfl ix is in a much more diffi cult situation than it’s ever been,” said Brahm Eiley, president of the Convergence Research Group, a Victoria, BC, fi rm that watching to see how consumers Netfl ix’s basic plan). Disney+ will Jeff Wlodarczak, a principal and Major theatre chains have tracks the streaming industry. “It’s react when they realise shows and off er a basic plan for $6.99 a month senior analyst at Pivotal Research refused to screen The Irishman in a lot more competitive. It’s choppy movies they were used to seeing and a bundle package with ESPN+ Group. protest over Netfl ix’s strategy of waters.” on Netflix are no longer part of its and Hulu for $12.99 a month. “There are few companies in the showing fi lms on its platform on Though few think Netfl ix will library. Netfl ix’s standard plan is $12.99 a world that are going to be able to the same day — or shortly after — relinquish its dominance, its market Sarandos said Netfl ix originals month. spend at these levels long term,” they appear in cinemas. share is expected to decline sharply are more popular than licensed “There has been pressure on Wlodarczak said. “For less than the cost of the in the US. Last year, Netfl ix took shows when examined per season Netfl ix and its fi nancial model for Known for the creative freedom movie ticket, you get a month of in 47% of subscription revenues and that Netfl ix will continue its years,” Eiley said. “New players it off ers, Netfl ix continues to lure Netfl ix,” Sarandos said. “At the end for streaming platforms in the diverse programming strategy, in the market only increase that big-name talent, signing lucrative of the day fi lmmakers want their US, according to the Convergence which includes unscripted feel- pressure.” production deals with writers fi lms to be seen, their work to be Research Group. In 2022, Netfl ix’s good programmes like Queer Eye, Sarandos said that the company’s including Ryan Murphy, Shonda out there in the culture and that market share will decline to 34%, sitcoms such as The Ranch and spending on content is sustainable Rhimes, as well as DB Weiss and happens on Netfl ix better than Convergence said. acclaimed miniseries such as given its revenue growth and that David Benioff , the showrunners anywhere in the world.” To be sure, Netfl ix has faced Unbelievable. Netfl ix will remain competitive by behind HBO fantasy series Game of As the race for consumers challenges before, fi rst with the “Basically our goal is we’re trying off ering something for everyone. Thrones. intensifi es, Netfl ix will look to grow transition from mail-order- to make your favourite show,” “The test is, ‘are you getting The streaming giant also has its subscribers abroad in Brazil, delivery to streaming in 2007, Sarandos said. “For some people, enough value for the money?’” landed projects with critically India and South Korea and other and later its successful foray into it’s that high pedigree, Emmy- Sarandos said. “That’s a question acclaimed fi lmmakers such as international markets. original programming with such winning, well-reviewed show and that consumers have to answer.” Alfonso Cuarón, (whose fi lm Roma One area Netfl ix is investing in is hits as Orange Is the New Black and other people just want to relax and Netfl ix also has an advantage won three Academy Awards), animation, which can be easier to House of Cards. watch something.” in the bidding war because video Guillermo del Toro and Martin dub into diff erent languages such “We have to continue to do what But as studios reclaim shows streaming is its core business, Scorsese, whose much-anticipated as Hindi. Netfl ix launched its fi rst we’ve been doing, which is make for their own services, Netfl ix will unlike rivals such as Apple and gangster fi lm The Irishman debuts original animated kids shows in the best content and deliver it have to spend even more money on Amazon. Some of Netfl ix’s in November. It’s one of some eight India in April called Mighty Little seamlessly,” Ted Sarandos, Netfl ix’s original programmes like Ozark and competitors could back down if Netfl ix movies that will debut later Bheem as part of an expansion chief content offi cer, said in an Stranger Things to fi ll the gap — and shows become too expensive, said this year. in the vast market. In India, the interview from the company’s keep subscribers coming. company recently launched a Los Angeles offi ces. Speaking of Netfl ix’s spending on content cheaper $3 monthly plan for people all the coming rivals, he said: “I is projected to climb to $35 billion who only watch Netfl ix on their think the bigger you are, the more in 2025, up from an estimated mobile devices. distractions you have to your core $16 billion this year, according Then there is the push into business, the more likely you can’t to Pivotal Research Group. The interactive series that can track move as quickly as we’ve been able additional spending on new and subscriber choices on shows. Last to through our history. The new set licensed programming could add to year, Netfl ix distributed a Black of competitors is actually just the the company’s debt load.