In 2011, when Netflix announced that it will be hiking up subscription fees and charging additional fees for users who wanted both DVD and streaming services, its stocks crashed, and it lost thousands of subscribers. Three years later, the online streaming service has made a comeback, serving as a model of success for other online video streaming services. What’s Netflix’s secret? Picking out a business plan and staying faithful to it, and improving over the years.
Netflix’s current success and comeback are by no means an overnight sensation. They are the result of two years of a steady working up to a vision the online streaming service had set for itself. As a result, Netflix recently reached its 52-week high in the stock exchange with shares currently fetching $243.40 per share. The comedy series Arrested Development also contributed to Netflix’s comeback in a big way. Netflix has exclusive rights to the series, and subscribers have waited eagerly for the release of its fourth season on Netflix. According to broker-dealer BTIG, the series even obtained new subscribers for the video streaming service.
In the overall view of things, the anticipation surrounding the comedy series Arrested Development is a recent development in Netflix’s steady rise to the top since its plunge a few years back. Part of the video streaming service’s success stems from its staunch decision to keep streaming video, which eventually led to its current availability in over 700 devices, devices that range from tablets to TVs with internet connection. Netflix has also been building up contracts with a number of major corporations. It possesses, for example, exclusive rights to the Walt Disney Company’s extensive vault of films and regularly streams episodes from popular shows, like Mad Men and The Walking Dead.
Thanks to its commitment to popular programming, Netflix is able to maintain its current customer base and keep them hooked to the service. But if we were to shift focus to customer satisfaction, we would find that Netflix’s dedication to original programming is what’s generating satisfaction with the service. Since users now associate Netflix with new and upcoming shows, the service benefits immensely. Users now see a Netflix subscription as a necessity when it comes to accessing new shows. Aside from that, the video streaming service has also maintained and expanded its movie collection. These developments clearly depict a service that’s trying to reacquire its old throne. If things go as well as they do now, Netflix might find itself on top of the heap once again.