Shares surged 20% by 10 billion, and the father of the House of Cards, Netflix, was 12 times times more likely than his competitors.

"Read the original"

Nan Bambu

  

10Month -World-renowned network video platformNetflixthird-quarter results were announced and the number of new users was357million people, higher than expected50%, Revenue22.9billion, growth over the year31.7%, net profit is5150million dollars, up from the year75%. After the financial results were issued,Netflixshares soared, rising more than20%, the company's market capitalization has increased by nearly -a Billion!

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Netflix started with an online video rental provider in the United States and made a fortune in renting DVDs to users with free mailing services . With the rise of the internet, the image industry gradually to the network media transformation,Netflix hooked up with the "Internet +" ride. Netflix has evolved from a previous online film leasing provider to an online film and television platform with original content and a Hollywood talent base.

from Those who are thought to be short-lived, to the Wall Street darling of billions of dollars in market capitalisation, from the struggle to seek a breakthrough in the marketplace, to put Wall Street and analysts ' expectations far behind, and to re-strike with the Yao people, how is it stepping into today's throne?

The era pioneer of content supremacy

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Is there a familiar feeling?

data show that Netflix 's operating costs are rising every year, and most of it is spent on content creation. For example, its huge success in the "House of Cards", the cost of production will be nearly 1 billion. The heavy weight of Netflix has once worried investors about the inability of Netflix to continue to expand its user base substantially, fearing that it will be in trouble when it expands overseas. They also think that Netflix spends too much money on content, but does not provide more content. Investors are rightly worried thatNetflix has suffered a lot in market expansion, but it turns out that content is the root of increased influence and attention.

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*netflix Operating costs

third quarter Netflix is able to produce such beautiful data on the one hand, thanks to exclusive licensing with Disney 's film and television media, and, on the other hand, because of the company's launch of the Strange Thing language (stranger Things), "frustrated" (theGetdown) and "Drug lords" (narcos) and other original home-made dramas, finally attracted the attention of international users, Drive the growth of the company's business.

Ride Har, CEO of Netflix, also said in an analyst video conference call:

If we look at a quarterly user growth rate, once we launch the new blockbuster content, then the user growth rate will rise.

In fact, modern mainstream network companies and channels want to seek better development in the film and television media industry, the demand for excellent content is imperative. Too many home-made programs are limited to low-cost micro-film, network and online entertainment, production quality can not be compared with the traditional media production programs. But the production cost and quality of Netflix's "House of Cards" equate to even more than many traditional TV stations, and its emergence opens up the precedent for high-end home-made video sites.

In the consumer market survey, consumers have said: Netflix 's popularity is so hot because it offers amazing content that can't be found anywhere else!

Marginal cost reduction under high-end self-control

Netflix's choice of high-end home-made does not make it infinitely more expensive, but decreases over time. In fact, high-end manufacturing gives it a more objective return on investment.

US copyright prices have been high, netflix< Span style= "font-family: ' The song Body '; > once for the purchase of "mad Man" the cost of a single set up to 100 million dollars, Close to the production cost of the play ( 200~250 million dollars) half; Copyright transactions have a time limit. In Hollywood terms, the price of the same type of content will be increased before each renewal. If "Mad Man" with 100 million authorized to netflix 2 2 netflix The price for re-renewal may increase per episode 10 million.

and if Netflix will spend a little more than a price to produce an equivalent level of play at home flat Taiwan independence, so in addition to the platform to bring money, traffic, influence, attention and a lot of other added value, such as PR effect, marketing and so on. The realization of copyright control, so that the future remake rights, derivative development rights, distribution rights, etc. are controlled in the hands of the enterprise for the future possible new strategies to prepare.

Better understanding of their habits and preferences than users

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compared with traditional TV stations, video websites can make the most accurate and direct records of users ' trajectories. through data analysis, Netflix understands the user's viewing habits and preferences, and directly serves the data in the production of the content. Netflix not only records what users are seeing, but also records when, through what devices, and how long it takes to see it even more than the viewer knows about its viewing habits.

the advent of the Big Data era has made Netflix makes it easier to create more content that suits the needs of your own platform. Netflix 's data engineers, for example, found that people watching the BBC play Kevin Spacey and David Fincher films, eventually contributing to the play and cast of the card house.

"Why are consumers willing to spend their time and energy on Netflix ?" The reason is simple because they put consumers first, giving them what they want, at any time they want, and on any device. Netflix offers viewers a lot of content without ads. It sounds simple, but what more can you expect from consumers? RichardGreenfield,BTIG Media industry analyst ,says.

one of the two features that Netflix has been able to build on is the ability to list and submit lists of movies they want to see, and to set up a film recommendation by accurately targeting consumers ' preferences. Netflix has created a better way to watch TV content, in a consumer-centric way. Therefore, it attracts more users, but also fosters the loyalty of users.

Competition is more than the immediate drift

Not long ago investment banks Piper Jaffray published a semi-annual survey of American teenagers watching hobby and habit data,37% teenagers watch Netflix every day , and Big Netflix rivals , Amazon Prime video and Hulu are only 3% This means Netflix is more than his competitor !

NetflixThe company has not published the ratings data, but the total number of hours viewed by the consumer for its services is beyond all television. In the user survey,57%of theNetflixusers say they are willing toNetflixpay for the TV. Tellson research company's data show that40%The above American families pay for the on-demand video subscription service, where36%of the family used to beNetflix, far more thanAmazon Prime(13%) andHulu Plus(6.5%).

in the overall consumer video market share,Netflixin37%occupies the highest ratio,YouTubepercentage26%ranked second,Cable TVpercentage25%ranked third, data onYouTubeis an upward trend, butCable TVin terms of the decline. ButNetflixstressed that it has been continuously concerned about the two competitors areAmazon Primeand theHBO, because these two companies have been very willing to invest money in content copyright trading and program originality.

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image from *piper jaffray*

AlthoughHuluand theAmazon Primedon't seem to get the favor of consumers, but they have been catching up with customersNetflix. Some analysts said: in the U.S. consumer satisfaction,Amazon Primeand theHuluhas narrowed down to the overallNetflixthe gap between them. Amazonand theNetflixThe popularity of each is58%and the59%,Huluslightly behind the53%. Figure Three Company satisfaction survey results:

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image from *piper jaffray*

in fact, Netflix is rooted in its original content and consumer-centric marketing strategy, and its leadership in the long-term strategic foresight makes it stand out in an increasingly competitive environment. The road ahead is still long, network video who the main ups and downs of our temporarily unknown, but there is a plan to understand the user's business, luck will not be too bad!

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Shares surged 20% by 10 billion, and the father of the House of Cards, Netflix, was 12 times times more likely than his competitors.