Netflix is the dominant company in the on-demand media industry, with 151 million paying subscribers around the world. By creating compelling original programming, analyzing its user data to serve subscribers better, and above all by letting people consume content in the ways they prefer, Netflix disrupted the television industry and forced cable companies to change the way they do business.
It has certainly accelerated the trend towards cord-cutting. The site eMarketer estimates that the number of American households who have canceled their cable services reached 18.4 million in 2019. That still leaves about 88 million American households who continue to pay for cable television.
In the long run, Netflix’s success may lead to the unbundling of cable. That is, cable customers may be allowed to pick and choose channels rather than pay for a whole batch to get what they want.
Netflix CEO Reed Hastings Reed discussed the company and its unique corporate culture: “Ultimately, flexibility is more important than efficiency over the long term,” he said.
Now, Netflix faces tough competition for programming and viewers from Amazon, Google, and Disney, among others. That’s the price it pays for breaking the mold for how television is made and watched.