Topic​:Consumer preference for on demand services
Sources​: ​https://www.forbes.com/sites/blakemorgan/2019/02/19/what-is-the-netflix-effect/#178cdd115640
-​https://interestingengineering.com/the-fascinating-history-of-netflix#:~:text=Netflix%20was%20first%20founded%20in,purely%20a%20movie
%20rental%20service​.
-​https://www.investopedia.com/articles/investing/060815/how-netflix-changing-tv-industry.asp
-​https://theonebrief.com/consumer-fueling-on-demand-economy/
-​https://www.forbes.com/sites/gregsatell/2014/09/05/a-look-back-at-why-blockbuster-really-failed-and-why-it-didnt-have-to/#242e4ff11d64
Summary​: In it's 22 year history, the gamechanger, Netflix has completely transformed the
entertainment industry. Netflix changed the way the world receives entertainment, by disrupting the
classic distribution chain to get content to consumers. Originally a mail order DVD service, the platform
now streams to more than 151 million paid subscribers in over 190 countries. Netflix's success and
demand for that type of service has forced other companies to offer on demand options, and many
companies have been created with that incentive. (All currency referenced should be assumed as USD)
Conclusion​: In today's day and age, when consumers want something, they want it “right now.” Due to
the on demand boost in our economy many service sectors have been forced to adapt their strategies in
order to satisfy customers' wants, and many new businesses have spawned to fit consumers “on demand”
mindset. This can be clear among many service businesses, Amazon offers one day shipping, if you really
want that keto cocoa powder, Amazon can have it at your doorstep the next morning. There is no longer
any need to drive all the way to Lobster Shack, UberEats will have your meal brought to you as soon as
possible. The service sector I will be digging into in this report is the entertainment market. The internet
has completely changed the way we watch television, for a majority of consumers, gone are the days
when they would run to the TV to catch the newest episode of their favourite show, this report will take a
deep dive into the gamechanger, Netflix. The company was initially founded in 1997 as a mail order DVD
service, instead of going to blockbusters, Netflix delivered entertainment right to your door. For $4 and a
$2 postage charge, Netflix would ship you a DVD, which you could keep as long as you liked. With this
model you could only rent a new DVD once the previous one had been returned. This model worked for a
while before a new subscription model was introduced in 1999, where you could rent up to four DVD’s a
month, for a flat rate fee. This model held up for 8 years, in 2007, Netflix first introduced it's online
virtual streaming service platform. By the end of 2007, Netflix had accumulated 7.5 million subscribers,
up almost 30% from the previous year, and this had only been the beginning. In 2008, Netflix partnered
with other media giants such as XBox, Blu Ray players, and TV set top boxes as alternative streaming
platforms to a computer. This year ended with 9.4 million subscribers. By 2010, Netflix had been added
to apple devices, and expanded to Canada. This year ended with about 20 million subscribers. With the
massive success of on demand streaming, Blockbusters filed for bankruptcy in 2010, as their retail model
couldn’t compare with the streaming service. In my opinion, Blockbuster's mistake had been not adapting
to this new platform of receiving entertainment. Leadership believed sticking to the bread and butter idea
of video rental would be sustainable, it wasn’t. The birth of streaming led to scores of bankruptcies, many
companies knew streaming was the future, but were not able to adapt to this new consumer preferencewhich was watching what you wanted, when you wanted to watch it. Out of bankruptcies rose several
competitors. A direct competitor, Amazon Prime Video offers the same idea as Netflix, differentiating in
selection and price point. Disney plus, another streaming service offers solely Disney films. Apple Music,
offers any released song available for streaming, and download. Netflix is a gamechanger because it
paved the way for “right here, right now” entertainment, and has allowed for many more successful
companies to follow in it's footsteps and meet that need.