Netflix is a well known American Entertainment Company. It is a leading company in the field of providing streaming and video on demand services- both online and DVD by mail. On 29th August, 1997, Netflix was founded by Reed Hastings and Marc Randolph in California. Though it started its business with DVD sales and Blu-ray rental services, it ventured into vod services in 2007. In 2017, this vod platform explored into the content-producing industry with “House of Cards” being its debut series. Since then, it has released more than 126 original movies and television series under its banner “Netflix Original”.
Netflix has emerged as the largest video on demand platform in the entertainment industry. Streaming on Netflix is available in 190 countries, which clearly shows its wide reach. As of July 2017, Netflix had a whopping subscriber base of 103.95 million worldwide, which includes 51.92 million in the United States only. As of 2016, revenue generated by Netflix is around $8.83 billion, and its net income is at $187 million.
Netflix Business Model:
The highlight of Netflix Business Model is that it categorizes its users based on psychographics and not on demographics.
Users have been segmented into 3 basic groups in terms of psychographics:
Users who are busy and don’t want to go out for movies
Users who love watching movies and rent them to watch
Users who want to save their money and want to have the best
The initial step is to purchase the commercial rights or acquire a license of the streaming content from their original production houses.
Managing and maintaining a smooth platform which can be used to broadcast the acquired content seamlessly.
Offering various kinds of attractive offers such as a free one-month subscription to lure new users to join.
Providing satisfying service to the users so that the new users convert into paid subscribers, and existing users become recurring subscribers.
Updating the platform with new and exciting content regularly so as to maintain the subscriber base.
How Netflix makes Money:
For the video on demand business, Netflix offers 3 different membership plans for the subscription which is based on streaming quality and screen count for accessing the content concurrently:
Standard Definition Plan: It allows streaming of content in standard definition quality on a single screen at a time.
High Definition Plan: It allows streaming of content in High Definition quality on two screens concurrently.
Ultra-high Definition Plan: It allows streaming of content in Ultra High Definition quality on four screens concurrently.
The subscription fee for these plans varies from country to country.
In the DVD rental services, the membership plans differ by the number of DVDs a subscriber possess during a specific time and number of discs per month. In order to enjoy streaming on high definition Blu-ray discs, in addition to the standard definition, subscribers have to pay additional amount.
Cost incurred by Netflix:
The profit generated by Netflix cannot solely be assessed by considering the membership plans. For that, various expenses incurred by Netflix have to be considered. These are explained below:
Licensing Cost:
In order to achieve a legalized platform for streaming series and movies, Netflix has to invest to acquire license and content which varies for different content.
Content Acquisition Cost:
Content Acquisition is an essential component for vod business in case of Netflix. This involves procuring streaming and DVD content from distributors, studios, and other mediums, which are done through direct purchases, revenue sharing agreements, and license agreements. For delivery of streaming content, Netflix takes the help of its own content delivery network (known as Open Connect) and third party content delivery networks. For delivery of Discs in the United States, there is a network of shipping centers for delivery and returns of DVDs which are also managed by Netflix.
Production Cost:
In 2013, Netflix started its own online library of films and television series under the brand name “Netflix Originals”. This strategy not only helped Netflix to promote its own exclusive streaming content but also helped it to evade licensing costs. However, the production cost for the Netflix Originals content requires very high expenditure.
Marketing Cost:
With the emergence and acceptance of vod services, many more video streaming players have joined the bandwagon. This has increased the competition and there are major players as well as new players who are giving Netflix a tough competition, such as Hulu, Amazon Prime, Hotstar, etc. To get the edge over its competitors, Netflix has to invest a huge amount for its marketing. The marketing cost involves payments to affiliates, expense on advertisements and expense incurred on device partners. Besides that, the company has to also bear the first month expenses for every new subscriber as the first-month subscription is free for new users.
Research and Development Cost:
Research and development sector is an essential sector of any industry, and this is applicable to Netflix also. This department is responsible for determining the growth of an industry in the future. Netflix invests a high amount of money in ‘Netflix Inc. Research and Development’ department. Netflix Inc.’s research and development for the three months ended in Jun. 2017 was $267 million. Its research and development for the trailing twelve months (TTM) ended in Jun. 2017 which was $965 million.
Technology and development Cost:
Netflix has a huge subscriber base of millions and they may stream content on Netflix at the same time, which will increase the traffic on its server. So, in order to provide hassle-free and smooth streaming experience, Netflix has collaboration with many ISPs to reduce the load on its own server, by using the embedded deployments of Open Connect Appliance. The company has to bear heavy costs for the collaboration. Technology and development costs also include expenses involved in designing the application for all the latest devices or updating the application for the existing devices, streaming delivery technology costs, and other infrastructural costs.
General and Administrative Cost
These costs include payroll and other expenses for the corporate personnel. These also include professional and partnership fees related to administration of the company.
Miscellaneous Cost
Besides the above-mentioned costs, Netflix has to bear other costs such as payment processing fees, the cost for dispatching of discs, and distribution of costs for the streaming content library, etc.
How StreamView can be used to replicate Netflix
Streamview is one of the best movie streaming softwares. With the help of Streamview, one can easily launch a Netflix-like venture. You will get Netflix clone script which will help you in starting your own video streaming site. Streamview will provide you video on demand platform which is highly scalable and can easily be customized as per your needs and requirements. You can modify the UI, add features to the mobile app, and modify its front end and do much more. Apart from this, you will get all the features you are getting from Netflix and the executives will work with you so that you can make all the changes you want in the design, development, hosting, deployment, and maintenance.
Nginx Server: Stremview will convert the HTTP format into RTMP and HLS format for your website, iOS, and Android. This will enable the user to watch the video without waiting for the buffer time. You will feel the difference yourself.
Upload Videos: You can easily upload unlimited number of videos and can use any channel to do so. Some of the channels supported are Amazon S3 Bucket, YouTube link, Website Link or Normal uploads. Steamview supports all.
Subscription: You can upload trailers for your videos. Allow users to watch them without any fee but to watch the whole video let them subscribe to your platform or let them pay for it. It is the best way to earn.
Pay Per View: Some users might not be willing to pay for the whole month as they are surfing other channels as well. So, with Streamview, you can allow them to pay one time for the video. Use the Pay per view feature of Streamview, which you won’t get anywhere else.
SEO Optimized: Streamview provides the best digital marketing features. You will get all SEO settings which you can set as per your need from the admin panel. It will help you in getting higher ranking in the search results.
Banner Videos: You can use featured videos on the banners to get more clicks and to make more money. You will get more subscriptions via this feature.
Streamview has some of the amazing features which you won’t get anywhere else. That is the reason it’s getting such a high demand in such a short time. Use it to witness the difference yourself.
If you have any doubts or concerns, feel free to drop a line or two in the comments section. I shall reply in a day or two. Keep watching this space for insights on video on demand services. Subscribe to our newsletter to learn more about various VOD business models. My best wishes are with you and your video streaming venture. Cheers!
There is certainly no living soul dwelling on this planet who does not want to witness their most treasured flicks and television series as per their convenience. Video on Demand is one such gem which allows an individual to do so. Also summarized as VoD in the industry it has quite similar features to that of a DVR service where recording and halting any content for later use is viable. VoD services represent a “Pay-Per-View” model which is administered by “OTT streaming service providers”. Users will definitely have to pay for the services and will be enjoying these benefits without any complication.
Amazon used to lead the domain of subscription video on demand services. Each year yields trillions of viewers and Amazon continues to beat their own records time to time. Currently, Netflix has become the torchbearer in the subscription video on demand domain. Netflix has allured abundant viewers enough to achieve a 10% more of the market share than Amazon. Certain solutions such as StreamView even commit in the deliverance of a Netflix like website or an unblemished clone of it.
The British regulatory board coined as the “Office of communications”, has listed the top notch subscription video on demand services in their decreasing order where the archive is led by Netflix with more than 65 million subscribers worldwide. Amazon Prime ranks second with around 40 million subscribers followed by Hulu with as few as 9 million subscribers. Sky Now TV is in the building process and still attracts around 750,000 audiences from all across the globe. With the advent of VoD services TV sets are becoming extinct while set top boxes are barely put to effect. A primary difference between a conventional cable service provider and platforms like Netflix and Amazon is that the latter does not have to be in anguish of uploading entire schedules over numerous channels which is a must for cable TV service providers. Netflix while collecting greater revenue than Amazon also have been bidding insurmountably every time. Barring all these factual information Amazon Prime still has been competent enough to carry forward a budget of £160 for a short span of three years.
Previously, Subscription Video on Demand services availed a drawback where the content could only be projected over a PC or a laptop. With the inauguration of IPTV the hindrance was cut short and later on it became viable for household purposes as well. Technologies such as Chromecast by Google and Fire Stick by Amazon act as hotspots or wireless devices allowing viewers to watch their favorite shows by on their Television with a better picture quality at ease. Subscription video on demand has become so popular in due time that even TV service providers have come up with the idea of providing Netflix to customers as a scheme of their amalgamation. The Chrome Cast dongle is certainly a boon to the ones who are familiar with the Television and not modern gizmos such as a laptop or an ipad. Analysts realize that with a minimalistic speed of about 23Mbps in the UK viewing SVOD on multiple devices might end up in buffering issues as well as the content might as well get pixilated. For subscription video on demand services the broadband must hoist a speed of 100Mbps or more or else need to be in an environment driven by jazzed-up WIFI bandwidths for its imminent growth.
As SVOD services commenced it engrossed 3% of the total UK inhabitants towards it in the year of 2014 while the rest was preoccupied with the notion of live TV and on-demand television. In this generation SVOD has become an integral form of witnessing TV shows and movies which chiefly stream US TV shows. Prevailing cable TV service providers are accomplished rivals of these video on demand services. These associations have finally come up with the idea of providing YouTube for free along with a TV including recording features.
On the other hand, Netflix has initiated exemplary TV series with the likes of “Breaking Bad” and “House of Cards” which had taken out the world by storm. Such flicks which are viewed by audience worldwide every single day has been quite an outstanding subsidy which aided in the growth of the subscription video on demand business. Netflix has spawned TV spectacles and manifestations in such a way that even legendary shows such as “Friends” have also been facing serious competition. Even without broadcasting Sports events or News, Netflix earns revenue which remains a delusion for most of the VoD applications.
Questions like “how to create a video on demand website” have been fired from time to time as people got indebted to Netflix and Amazon Prime. Multi National Industries are also looking to create Netflix clones so that their business is kick-started at a totally different level. One such turnkey solution is StreamView which would create a VOD website following the Netflix business model. StreamView initiates a Netflix clone with an economical expenditure and customizable features. Everything which Netflix contains will be present in the clone. In case of any other extension required by the appealer it will be added to the script as a supplement. Here at StreamView the HTTP format is being converted into HSL and RTMP so that it works on iOS and Android devices. Videos will play without any delay, lag and will be deprived of buffering. A Linux operating system is the imperative platform where the Netflix business model or the Netflix clone will be launched. The code used must be nothing other than PHP.
One can always bank upon their own selves for the initiation of such a venture but taking up things on your own won’t help you save a buck. You will have to spend dreadfully. Rather than doing that you can also rely on services such as StreamView who would embrace your assignment and create immaculate business models at a much lower rate. Coding is carried out by languages such as PHP and NodeJS for an effortless way to launch online rather than counting on CMS such as WordPress. Introducing unruffled and stellar themes for videos and galleries enhances aesthetic management. Some plug-ins qualified to handle websites with video content are popularized as well. Other factors include transcoding which is again a transcripting process along with customizations for video players which have been put to effect.
North America used to be the harbinger for Video on Demand services but now Asia Pacific has also come forth with challenges demanding progress. According to reports Wireless broadband will be enduring a compelling slam from 32% infiltration in 2016 to a 63% infiltration by 2022. Limited bandwidth will be bearing a stagnant growth which would be slower than that of unlimited bandwidth incursion. The research on subscription video on demand included 15000 correspondents from countries such as Australia, Indonesia, Thailand and Malaysia. Hong Kong leads the race with 72% of their population depending on video on demand with Australia behind them with a community of 56 percent who are indebted to subscription video on demand. The present day witnesses at least 78 percent of the American population obligated to avail at least a single OTT service. In the year 2014 around 90 percent of the U.S population were looking forward to subscribe to cable. However, the statistics dropped unbelievably and later on in the same year the count had depreciated to 79 percent. The E&M industry is in a state of constant change with spectators doubting the worth of paid TV subscription.
On embracing independent blueprints studios and networks wills surely pave a path towards the betterment of the industry. The ones who have actually prospered from such ventures are studios since their hunger for a superior content is never slackened. Video providers need to acquire information as to how the Digital Music market has been able to entice a humongous number of admirers. This might take time, but considering the rate at which the video on demand industry is booming this would not be a gruesome task. Learning how to harmonize depth which signifies that for each viewer there must be an appealing content and also studying the ways by which the viewers could experience a flawless content is a crucial task going forward. Traditional video circulators must consider creation of additional divisions, must pertain to cost cutting schemes and must also assimilate bundles of OTT services which enjoy access to broadband.
In conclusion it is convincible that the digital media world exclusively depends on its fans or viewers. Subscription video on demand services had been launched in order to impediment piracy. Watching your favorite shows for free must be brought to a standstill since this is not profitable for the team toiling day on day to release their content. With Netflix business model and clones of video on demand services created by different software solutions it is certainly feasible to watch your favorite movies and TV shows without any hardship. Together we can draw a borderline which will end piracy which is a colossal crime in the Video streaming industry.
Live streaming has become a big rage among the current generation. There has been a meteoric rise in its implementation. In the past,the live streaming feature was only limited to news channels and major companies with latest technologies, but, with the advent of technologies, anyone with a phone or laptop can host a live streamingevent and make it accessible to the entire world.
Live streaming has become popular due to many advantages associated with it. It has the potential to reach a larger audience base. It also provides a medium where the viewers can directly interact with the broadcaster through live chat and Q&A sessions. With the help of live streaming, presentations, conference, and sales pitches can be streamed quickly without any hassle and cost.
Live streaming has achieved a great popularity among all social media platforms viz. YouTube, Facebook, Snapchat, etc. These billion-dollar companies invest a huge amount of money in enhancing their own live streaming platforms, and this shows the importance of live streaming.
Seeing the great opportunities in this field, you might be triggered to jump into the arena. You may also have a great idea which you think will click with the audience. But, you are worried. Are you confused regarding how and from where to start? Do you fear whether the audience will like your live streaming or not? Do you know how to start a live streaming? Fret not, in this blog we will provide you the ultimate cheat guide that will surely help you to achieve a broader fan base and become popular. Here, we are outlining 10 valuable tips to increase your viewership for your next live streaming.
Interact with the Audience
Interacting with your audience during live streaming is the most effective way to increase your viewership base. The interest of the viewers is not only limited to the broadcasting and its content, but they are also eager to know about your personal life and your experience during the making of the video. Thus, live streaming offers a fun and friendly medium to interact and engage your audience. Interaction with your audience at a personal level enables you to build a strong relationship with every viewer, and they are more likely to come back for your next sessions.
There are many ways by which you can interact with the viewers:
Initiate a live chat session so that the viewers can give their comments about the broadcast and ask questions.
Begin a Q&A session after completion of broadcast and allow participation of the audience in asking questions to you and also interacting with other viewers.
Embed your broadcast links to various social media platforms like Facebook, Instagram, and Twitter where users can give comments, and also share it with others.
Be Consistent
Consistency is an essential factor in increasing as well as maintaining your viewership members. It is necessary that the audience knows the date and time of your event in advance so that they can catch you when you go live. Thus, it is your responsibility to inform the audience about your broadcast schedule and stick to it.
You should be prepared to go live few minutes before the scheduled time. This will ensure that anyone who visits your live streaming link early will not encounter a blank screen. You should respect the fact that the audience devotes their precious time to your broadcast and it is your moral responsibility to fulfill their expectations. All these things will help you get a larger fan base.
Live streaming on a regular interval is always recommended as constant interaction with your viewers will keep you more connected with them. This will keep their interest to your live streaming intact, and you will achieve an increase in viewership. If there is a big gap between your live streaming, the audience might lose interest and will deviate to other options available. Thus, being consistent with your routine will help you in the long run.
Promoting on Social Media
The role of social media platforms in today’s world cannot be overlooked. They provide the simplest and most economical medium for promotion of content through live streaming. It is essential that you plan out your event in advance. Then, you can regularly update about it on Facebook, Instagram, Twitter and other popular platforms regarding the date, time and theme of the event. This will generate curiosity and hype among the viewers, and they will wait eagerly for the telecast of your broadcast.
The role of social media is not only limited to the initial phase. After the broadcast is telecasted, you can share the links on social media for the people who missed the live streaming, or for repeated viewing. This promotion will not only benefit the broadcast but will also increase the fan base of the broadcaster.
Using Proper Equipment
Just imagine you have thoroughly prepared for your main event and inform the audience about the schedule. You expect the event to be a big hit, but at the time of broadcasting, viewers encounter poor quality video/audio and buffering issues. It will surely frustrate your viewers, and there is a possibility that they may not return for your forthcoming events anymore. You may not gain any new viewers, and may also lose your current fan base.
Thus, selection of reliable equipment is essential. It is recommended to opt for equipment that hosts videos using a Content Delivery Network (CDN). A CDN enables to generate video and audio with a higher bitrate, and will bypass any buffering issues and server congestion by streaming on a global network and servers. Thus, it allows for a smoother experience for the viewers.
Choosing your Broadcast
You may be a frequent broadcaster or may be live streaming events at intervals. It is usual that if you belong to the first category, you will have higher chance to increase your fan base. But, if you are not a frequent broadcaster, but want to enhance your viewership, then you have to select your event tactfully. Your event should be unique and interesting so as to grab the curiosity of the viewers. You should constantly search for interesting ideas based on current situation, sports, etc.
Video on Demand
Your job is not just over after live streaming your broadcast. There may be some viewers who could have missed your broadcast due to some reasons. There will also be some users who enjoyed your live stream very much and would like to watch it again. In such cases, Video on Demand is the solution. Uploading Video on Demand on your network will enable the viewers to watch your past videos repeatedly and with ease. This will ultimately help you to build a loyal fan base and also attract new viewers.
To enjoy this feature, you need to go for a platform that will enable you to host live streams as well as video on demand. Using this platform, you can create playlists for VoD content that will provide access to your viewers to watch the content according to your time frame.
Countdown to Event
This is an interesting and effective way to capture the attention of the audience. When the event schedule is fixed, you should send out regular reminders on various social media platforms, be it Youtube, Facebook, Instagram, etc. The process is to be continued till the event date comes up. You may increase the frequency of reminders on the day of the event so as to make sure your viewers watch the broadcast. The countdown helps to generate curiosity among the viewers.
Length of Broadcasting
You can categorize your broadcast into two segments – live streaming and video on demand. Live streaming broadcast should be kept lengthy, as the longer duration will enable the viewers to become more interested and engaged. Video on demand should be shorter in duration and catchy as the interest of the audience is based on the first few seconds of the video. The difference between live streaming and video on demand from viewer’s perspective is that the viewers must have decided in advance to watch your live streaming. Live streaming your event for about 30-60 minutes is ideal to grab the attention of the viewers.
Promoting through YouTube
YouTube is the most popular video sharing website and hence proves to be the best online platform to promote your live streaming. YouTube has a very user-friendly interface for easy searching of your broadcast and enables the users to watch your videos as many times as they want. At the end of each video, you can thank the viewers and also inform them about your next live streams.
Creating a Buzz
No event is successful without promotion, and this is also applicable to live streaming. It is not enough to provide the event schedule to the viewers, you also need to provide them reasons why they should watch it. You can give details about your event, what the audience can expect from it, and your experience while planning the event. Releasing teasers and trailers can be very effective to create buzz and hype around your event.
Use these amazing tips to increase your viewership by 999% for your live streaming.If you are planning to go live so as to convey important messages to your audience, you should look for a scalable and one-stop solution such as StreamNow. StreamNow has all the features to transform your venture into the next Twitch or Ustream clone. Peer communication and user engagement are facilitated through live commenting and chat features. Known for its multiple monetization options ranging from subscriptions and advertisements to sponsorships, your live streaming event will be a breeze. Users can opt for web and mobile push notifications to keep themselves abreast of your upcoming live streaming event.
If you have any doubts or concerns, feel free to drop a line or two in the comments section. We shall reply in a day or two. Keep watching this space for further insights on live video streaming and video marketing strategies. Subscribe to our newsletter to know more about tips and tricks on live streaming. My best wishes are with you and your live video streaming venture. Cheers!
