Netflix, the end of Real-Flix?
https://www.netflix.com/au/
The entertainment industry, specifically film and television, has followed a particular ‘traditional’ distribution path since the incorporation of the television into consumers’ lives and homes. Generally the process begins with theatre showings, followed by DVD release, then cable television airing and finally airing on broadcast networks (Murphy 2011, 17). This process bound the industry to a designated production and distribution process, in turn limiting and controlling how entertainment is shared. The traditional nature of this process did not account for the technological affordances that would arise through new media, particularly the Internet, and social media. Netflix saw the potential of these affordances and positioned themselves in anticipation of a looming industry transformation.
Netflix began as an online movie rental process, where consumers were able to rent films online and receive them through postal mail, to be returned after rental (Netflix, 2015). From here the company expanded and grew consistently anticipating the next trend in entertainment consumption. Now, Netflix is a dominant force in the entertainment industry, delivering and producing its own content, as well as other popular content, online (Castillo 2013, 12 & Ault 2014, 35). The dramatic change in the entertainment industry, and the communications theories underpinning this move, can be explained through examining Netflix and its expansion. Netflix has broken the mould in terms of entertainment delivery, converging industries and technology to produce and distribute content. This raises the technological determinism debate, has Netflix adapted technology to meet social needs or does technology define our social needs and values pushing Netflix to constantly transform its delivery methods (Baron 2008, 4)? Finally the combination of these concepts highlights the presence of spreadable media in the entertainment industry through platforms such as Netflix.
The article ‘37 Things You Probably Didn’t Know About Netflix’ provides a great insight into how Netflix has become and continues to remain a dominant force in the entertainment industry. Netflix, in following the convergence trend, has diversified and demassified media content opening up a vast range of opportunities for consumers to interact with and control what and where entertainment is received (Flew 2014, 76). Netflix works through service subscription, a monthly charge gives consumers access to all available Netflix content, including their original productions (Ellingsen 2014, 107). The convergent nature of Netflix has allowed the repurposing of entertainment content and encourages the social side of consuming (Flew 2014, 87).
Original Netflix productions, such as Orange is the New Black, publicised solely through the platform and social media are more dominant in the social media-scape than traditional linear network series (Ault 2014, 35). The ‘move to own content’ signifies the convergence of production and distribution in the entertainment industry (Ellingsen 2014, 108). The incorporation of social media as an advertising tool and communal space for consumers has changed the entertainment industry and moved entertainment into the technological era. No longer is entertainment a process bound by time and location, Netflix has allowed for multi-faceted consumption, from viewing, to sharing, to contributing (Netflix Launches New Social Features, 2013), further converging the production, distribution and consumption of entertainment. 2010 saw the introduction of Netflix onto Internet enabled devices (Netflix, 2015) meaning subscribers were now able to view entertainment of their choice at any time in any place. This move eliminates the need to have a DVD, DVD Player, Television or access to a theatre at the designated times. This is a significant step in the change in the entertainment industry; the control in this industry has shifted to consumers (McMillan 2014). Entertainment producers and distributers are now forced to explore different production and sharing platforms to keep-up with the ‘Netflix Way,’ (Castillo 2013, 12). Further, converging production and distribution through social media will cement a position in the market and keep up with current industry trends. Simply producing and distributing traditionally will leave companies in the wake of new accessible, direct and social entertainment platforms. This highlights how social media has changed the nature of the relationship between entertainment producers and audiences in the entertainment industry since the introduction of Netflix, and the cultural shift causing this change.
Pinning technology as the driving force in sculpting society and cultural values has been a common theme throughout the advancing technological age. There is no question technology has many affordances society, now, could not live without. However the underlying debate remains, does technology drive social change or is there a balance between societal needs and technological advancements (Roe Smith & Marx 1994, 2). Netflix has appeared to be in front of the technological game in its business expansion and incorporation, confirming the idea technology, with its organic characteristics, grows with us (Schulz 2002, 45). This growth substantiates the idea of technological determinism in society, in anticipating technology will grow and expand alongside humans it is inevitable technology will influence society and culture (Schulz 2002, 45). However, Netflix growth can also be viewed as a responsive model. Netflix works to align consumer needs with available technological opportunities. Consumers naturally engage in conversation about experiences (Netflix Launches New Social Features, 2013), therefore incorporating social sharing options into an online entertainment platform is an obvious integration. This simple social strategy highlights Netflix has not initiated a cultural drive to discuss experiences, rather they have recognised a cultural value and incorporated it, through technology, to establish a virtual space reflective of the real world. Underlying this cultural value is the presence of a shift in behavioural norms and the removal of time and location boundaries that previously constricted communications (Baron 2008, 4). This shift is reflective of the global community and shared space technology has afforded users. Thus, technology and social media do not control or define cultural values rather values are established and technology is incorporated to facilitate these into society. In using these societal cultural values to underpin business practices, Netflix is also enabling the expansion of spreadable media.
Spreadable media has been facilitated by technologies that allow production, distribution and consumption all in one device (Nightingale 2011, 109). These technological affordances make it easier for media to be shared within your network or to the global community as a way of engaging with content (Nightingale 2011, 111). This idea underpins the social move from top-down distribution of content to consumer circulation of content (Ellingsen 2014, 109). Netflix exemplifies this consumer want through its integration of socially sharing content through Facebook. While the platform remains a distribution service, once subscribed consumers are able to modify their ‘Social Settings’ and participate in conversation and share suggestions with friends and fellow consumers (Netflix Launches New Social Features, 2013). This idea extends further to the concept of not watching entertainment next to someone but together online through ‘chatterboxing’ (Martindale, 2013). Chatterboxing encourages consumption at the time of release, rather than being left behind in the wake of social media spoilers, and pushes consumer chatter about new entertainment through social media channels (Martindale, 2013).
The ‘chatterboxing’ phenomenon is likely to play out in mid-June with the release of the next season of Orange is the New Black, an original Netflix series. Netflix subscribers will jump-in to watch the complete season immediately on release and share their experience with others through social channels to ensure they are in the ‘first-to-watch’ bracket and avoid being left behind socially (McMillan 2014). This series has begun it’s advertising campaign to stir interest through a YouTube trailer release, which was then spread and shared through Facebook. The campaign incorporated the hashtag #sorrynotsorry and #orangeisthenewblack, which has gone on to spread virally through Twitter.
From this simple trailer it is obvious how interconnected social and new media are, highlighting the potential for spreadability. The idea here is that social media has changed the entertainment game. Netflix has encouraged the idea of social screening, spreading the content virally and connecting with entertainment beyond simple consumption. The opportunity for spreadability through social media and the interconnected nature of all technology (Luckerson 2012) is encouraged and captured through Netflix.
Social Media clearly impacts Netflix as a business and the overarching bracket that is the entertainment industry. Netflix is the leader in changing and morphing the industry to what consumers’ want and need given the technological affordances experienced today. Converging technologies, the technological determinism debate and spreadable media all highlight how the entertainment industry has been changed in the context of Netflix. Importantly, recognising that these concepts develop on each other helps to identify industry changes. Convergence facilitated the move from television to Internet viewing of television programs. This process was instigated by the social drive to incorporate technological affordances into cultural changes. From this media has become viral and spreadable, moving away from direct distribution to content circulation in accordance with changing cultural values.
References
Ault, Susanne. 2014. “Netflix’s Social Cache.” Variety, 324(16): 35.
http://search.proquest.com.ezp01.library.qut.edu.au/?accountid=13380
Baron, Naomi. 2008. Always on: Language in an online and mobile world. Oxford: Oxford University Press
Castillo, Jose. 2013. “The Netflix Way.” Streaming Media Magazine, 1: 12. http://search.proquest.com.ezp01.library.qut.edu.au/?accountid=13380
Ellingsen, Steinar. 2014. “Seismic Shifts: Platforms, content creators and spreadable media.” Media International Australia, 150: 106-113. http://search.proquest.com.ezp01.library.qut.edu.au/?accountid=13380
Flew, Terry. 2014. New Media. 4th ed. South Melbourne: Oxford University Press
Luckerson, Victor. 2012. “The Winners and Losers of the New Television Landscape.” Time Magazine, October 4. Accessed April 17, 2015. http://business.time.com/2012/10/04/the-winners-and-losers-of-the-new-television-landscape/
Martindale, Sarah. 2013. “Going live to going online, television is not what we knew.” Accessed April 16, 2015. http://theconversation.com/going-live-to-going-online-television-is-not-what-we-knew-16983
McMillan, Graeme. 2014. “Why Do People Still Watch Live TV?” Time Magazine, March 4. Accessed April 17, 2015. http://time.com/12431/appointment-viewing-spoilers-live-tv/
Murphy, Ian. 2011. “Netflix and Emerging Economies of Media Distribution.” Thesis Paper, University of North Carolina http://search.proquest.com.ezp01.library.qut.edu.au/?accountid=13380
Netflix. “Netflix Media Centre: Company Overview.” Accessed April 16, 2015. https://pr.netflix.com/WebClient/loginPageSalesNetWorksAction.do?contentGroupId=10477
Netflix Launches New Social Features. 2013. Entertainment Close-Up, Jacksonville: Close-Up Media, Inc. http://search.proquest.com.ezp01.library.qut.edu.au/?accountid=13380
Nightingale, Virginia. 2011. “ Chapter 5: Spreadable Media: How Audiences Create Value and Meaning in a Networked Economy.” In The handbook of media audiences, edited by Joshua Green and Henry Jenkins, 109-127. Chichester: Wiley-Blackwell.
Roe Smith, Merritt, & Leo Marx. 1994. Does Technology Drive History?. Cambridge: MIT Press