Media Studies www.curriculum-press.co.uk Number 112 Netflix: an Internet Television Network

See also: Factsheets 83: The Impact of New Media: Television and 104: Audiences in the Digital Age.

The aims of this factsheet are: • To explore Netflix as an institution • To consider audience behaviour • To evaluate the effectiveness of the Netflix model

Netflix, Inc. is an American based company providing on-demand Internet streaming media to North and South America, Scandinavia, the Caribbean and UK & Ireland. In the United States they also provide a DVD-by-mail service much like LOVEFilm in the UK. The company was established in 1997, and began their DVD-distributions in 1999.

They were not launched in the UK as a service until 2012, although Definition awareness of the brand grew as a result of their success in streaming VOD is the acronym used for video on demand. This simply refers original programming and support of independent film distribution. to the on demand streaming of moving image texts. They describe their institution as “the world’s leading internet television network” and much of their development has impacted audience On-demand streaming media involves a constant transmission consumption of television. of data via the internet. This data is constantly being presented to the end user (the audience member) and the data is available for immediate playback, rather than as a file download. The process offers much faster consumption of data, as long as the internet connection speed is strong. When streaming, applications can display the data before the entire file has downloaded, increasing consumption speed for the user.

Company Timeline 2000 – Netflix launches their personalised recommendation system that uses the ratings of existing Netflix users to predict choices for all Netflix users. 2002 – Netflix makes initial public offering on the Nasdaq. Netflix web log,https://signup.netflix.com/MediaCenter/ImagesOverview 2006 – Netflix launches the Netflix Prize, pledging $1 million to the first person or team who can reach certain accuracy goals in recommending Netflix is available across a range of devices, including smartphones, films based on personal preferences. The company releases 100 million tablets, gaming consoles, and internet enabled television. This is an anonymous film ratings ranging from one to five stars, the largest such example of technological convergence, where two or more technologies data set ever released. combine in one new device/ platform/ application. For Netflix, 2010 – The Netflix Prize is discontinued due to privacy concerns linked technological convergence offers greater audience pleasures through to the data that was released. increased accessibility and user convenience. 2012 – Netflix launches in the United Kingdom, Ireland and the Nordics. October 2012 - Netflix wins first Primetime Emmy Engineering Award. February 2013 - Netflix original series House of Cards launches. September 2013 - House of Cards wins three Primetime Emmy Awards October 2013 - Netflix now has over 40 million members globally How Netflix Works Like Northern Europe’s LOVEFilm, Netflix requires users to subscribe to the service via the company website. The user pays a monthly fee, and can then stream unlimited films and TV programmes instantly. Netflix offer the streaming across a range of devices, including TVs Netflix promotional images: iPhone device, Just for Kids – internet enabled and tablets. Netflix also allows users to log into multiple devices, TV interface and Just for Kids Wii interface, https://signup.netflix.com/ meaning that login details can be shared within family or friendship MediaCenter/ImagesOverview groups. Netflix also encourages users to rate the programmes and films they stream, enabling Netflix to make recommendations to the user. 1 112 Netflix: an Internet Television Network Media Studies www.curriculum-press.co.uk

What makes Netflix different? This will enable the institution to make more informed choices about The streaming market is increasingly competitive, as the technologies films and TV programmes to offer. “The way we’re using that data is used to stream VoD become ubiquitous within society. DVD rental to keep [subscribers] happy. And the way to keep [subscribers] happy shops have lost their market share, with many going into administration is to let them watch more stuff,” (Todd Yellin, Netflix). (Blockbusters being a notable recent case). Alongside Netflix, users have various options including LOVEFilm, Amazon Instant Streaming, Exam Hint:- When considering any A2 level exam question NOW TV (Sky TV’s offering), as well as the more independent Mubu that asks you to consider wider contexts, contemporary media and Curzon On Demand. Netflix seeks to maintain its popularity with landscapes of new media you should use theory to underpin subscribers through increased personalisation. your argument. You will need to adapt the theorist’s ideas for the new media context, so make sure you explain how you are Previously, Netflix relied upon the user ratings to enable personalised applying these ideas. recommendations for the subscriber. However, the algorithms used to generate these recommendations did not take into consideration that one login is likely to be used by a wide ranging audience of differing Activity tastes, ages and interests. For example, within a family household one Audiences are increasingly trading their data for increased access login may be used to stream Disney-animations for the 8 year child, or user personalisation. Evaluate this issue by completing the table romantic comedies for the teenage daughter, and House of Cards for below from a utopian and dystopian perspective. Consider issues of the parents. This has resulted in various entertaining recommendations privacy, censorship and audience interaction. (now catalogued by Twitter feed @BadNetflixRecs). Issue/ debate Utopian Dystopian perspective perspective Does Netflix exploit Netflix Netflix use the user or does profiles offer personalisation to the user exploit personalisation control the media that Netflix?Audience for the user, so users can consume power (John Fiske) the audience through the choice of have the power what they offer. Here to control the producers have their media the power. consumption. What options for audience interactivity does Netflix offer?

Does Netflix offer audiences a wider range of ideologies and values? The recommendations are influenced by a computer algorithm. Is this Bad Netflix Recs Twitter feed, November 2013 https://twitter.com/ a true reflection BadNetflixRecs of audience interaction or an Netflix has just introduced a free profile system, where users can create example of gate- up to five profiles on one subscription. The intention is to offer greater keeping for VOD? individual personalisation rather than the household personalisation that the previous system offered. Personalisation is a key element to the Netflix has also lead the way in developing VoD services through success of Netflix, as they need to keep existing users happy as well their acquisition of original content for distribution. This began with as attract new users. According to Todd Yellin, Netflix’s vice president webisodes of the horror series Splatter (2009) which received mixed of product innovation, 75-80% of what users watch on Netflix comes reviews for Joe Dante’s direction of Corey Feldman in the lead role from recommendations, as opposed to searched programmes. Offering of Jonny Splatter. From this point Netflix took a 3 year break, coming audiences the increased personalisation offers the gratifications of back with the Norwegian-American comedy-drama series, Lilyhammer, personal identity and social interaction (Blumler & Katz), as users and crime series, The Ropes. The altered approach to content proved feel that they are able to tailor media schedules to their own tastes, popular with audiences, and led to Netflix licensing the rights to House while still participating in a viewing community through the rating of Cards in 2012. and recommendations. The profiles will enable Netflix to gather more detailed information about its subscribers and their viewing habits.

2 112 Netflix: an Internet Television Network Media Studies www.curriculum-press.co.uk

Original drama, original distribution Following the success of House of Cards, Netflix have developed With House of Cards, Netflix was not only able to establish itself as and replicated the model; Hemlock Grove is a horror thriller which the leading on-demand television network, but also as a legitimate premiered 19 April 2013, with all 13 episodes being immediately entertainment brand. Traditionally, original drama has been produced available to watch online. The genre of horror thriller engages the and distributed through television networks and institutions, and is audiences’ desire to resolve the enigmas, so they are likely to watch a mainstay of television institutions. The 50th anniversary episode 2 or 3 episodes at once. Here again we see the increase in audience of Dr Who, The Day of the Doctor (screened 23 November 2013, loyalty to the Netflix brand. BBC1) was watched by over 10 million, and was the focal point of the House of Cards and Hemlock Grove is proving that the Netflix model is viable scheduling for the week across a range of BBC platforms. The original programming here is a key driving force in the BBC’s success. This is also evidenced in other mainstream institutions: ITV’s Downton Abbey and Channel 4’s Top Boy are two examples. So, with House of Cards, we see Netflix following the traditional production model but in an emedia context. House of Cards, whose entire first season of 13 episodes, premiered on 1 February 2013, is a political episodic drama starring Kevin Spacey, with David Fincher (The Social Network, 2010) directing. The credentials of this partnership enabled Netflix to establish their brand as a leading on-demand television network. The series was exclusively available on Netflix, encouraging audiences to subscribe. The move away from the traditional model of on-demand streaming, and the episodic nature of the programme established audience loyalty that was more predictable than previously experienced. Netflix purchased the rights initially to 26 full episodes prior to production commencing, and the deal was http://www.atvtoday.co.uk/wp-content/uploads/2013/03/hemlockposter.gif rumoured to be $100 million. This sum is not alien to traditional http://2.bp.blogspot.com/-ZU57cK09bco/UTui-3fbCXI/AAAAAAAABa0/ institutions when producing TV dramas – ITV1’s Downton Abbey gpCG8mFj7S0/s1600/house-of-cards.jpg cost £1m per episode, a cost which was recouped through advertising revenues. However, it is important to note the distinct difference in Activity the distribution model of Netflix, as opposed to other institutions that Consider the two promotional posters for House of Cards and utilise on-demand streaming. Hemlock Grove. What audience pleasures do they offer? How has One reason for Netflix’s popularity is the concept of access; in previous Netflix established a brand image across the two products? Why on-demand models, audiences could only access a limited amount would instant access provide audience gratifications? of material for a limited amount of time: iPlayer will have some programmes available for 7 days, some longer, but a series will not Future of Television? be available in completion before it is broadcast on TV. This is due to Netflix have established a new and secure model for on-demand the constraints of the multi-platform model – you cannot maintain the internet streaming of television products. Netflix have made it known episodic nature of a TV series on broadcast if you are premiering all that they are keen to develop their own content rather than bulk-buying episodes online at once. However, Netflix do not have the constraint in existing content; current contracts with Nickelodeon and MTV do of multi-platforms, so have the freedom to exploit the immediacy of not look as if they will be renewed. The bulk of British television emedia: for perhaps the first time, Netflix was offering audiences the on-demand is focused on catch-up, although there have been some kind of viewing pleasures that they would only normally get from forays into online exclusive premieres – namely Bad Education and purchasing the DVD box set, and then watching it in its entirety. This Some Girls, both BBC3 – and the comedy Impractical Jokers was behaviour has coined the term ‘binge-watching’ which was recognised commissioned by BBC3 following an online pilot. In this way, it may by the Oxford English Dictionary in 2013. Waiting for the DVD box seem as if on-demand streaming may offer an extension to the viewing sets in order to get similar access would mean that audiences would experience, as opposed to its immediate death. have to avoid a series (and the spoilers) across all platforms; this is almost impossible in our contemporary media landscape. Activity Conduct a poll across a range of different audiences. Find out Definition:binge-watch, verb: what ages/ social groups are watching TV on-demand/ catch up/ to watch multiple episodes of a television programme in rapid live broadcasting. What do you notice about the difference in succession, typically by means of DVDs or digital streaming. audience behaviours? Does this correlate to ages/ social groups? [ORIGIN 1990s: from BINGE + WATCH, after BINGE-EAT, BINGE-DRINK.] The word binge-watch has been used in the circles of television fandom since the late 1990s, but it has exploded into mainstream use in 2013. The original context was watching programmes on full-season DVD sets, but the word has come into its own with the advent of on-demand viewing and online streaming. In 2013, binge- watching got a further boost when the video-streaming company Acknowledgements: This Media Studies Factsheet was researched and written by Katrina Netflix began releasing episodes of its serial programming all at Kalvert. Curriculum Press. Bank House, 105 King Street, Wellington, TF1 1NU. Media Factsheets may be copied free of charge by teaching staff or students, provided that their school once. In the past year, binge-watching chalked up almost as much is a registered subscriber. No part of these Factsheets may be reproduced, stored in a retrieval evidence on our corpus as binge-eating. (Binge-drinking remains system, or transmitted, in any other form or by any other means, without the prior permission unchallenged in the top position, at least for the moment.) of the publisher. ISSN 1351-5136 3