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NETFLIX will die in ten years time

NETFLIX will disappear in ten years time

NETFLIX is a big guy right now in 2019. But will this always be the case?

My take on it is that if Netflix continues to be interested in movies and series, they will have to face big challenges that may end the life of the company.

Let me explain:

  1. Today’s world and the world that is presented to us as the near future are showcased as very diverse and complex. Nevertheless, there are still certain principles that guide society as a whole in what concerns the “first world”. That is innovation and progress – whatever that means as an abstract concept. What I can reason is that the world will keep on inventing new machines, new services to make our existence more “enjoyable” and “easy”. This means that if people want to film a movie at the lowest cost and still look professional, they will be capable of doing so as the market will provide them with those goods. It’s just a matter of demand and supply. This is nowadays translated into many companies that their main focus is creating gear cheap enough for the prosumer to buy and acquire at a reasonable cost and still look professional to the masses (that I would argue it’s the only important subject here). Examples of these products and companies are Xiami (offering smartphones with 4k integrated cameras at a reasonable cost), Dji (producing amazing products like the Osmo Dji pocket camera that fits in your pocket just like a smartphone with amazing stabilization and a 4k camera) and GoPro (with their extensive catalogue of sport videocameras that still dominate the sector). And I cannot start to imagine how much the audiovisual industry will have changed, but I bet that everything that we now consider professional will be outdated and outperformed by cheaper and better gear.
  2. People are, in some way, starting to get tired of the “same old same old”. People are starting to notice that the same stories are being told endlessly in a different manner, with a more showy wrapping. NETFLIX is, for most of the films they have produced to this day, a great example of this. They have structured their company on expansive politics. Their main focus has been to “conquer the world” and to be present in as many countries as possible. I don’t blame them for this but I do believe it is an ecenomic driven tactic that chases money… not art. If their true ambition was to democratize art, they would have built a similar platform to YouTube but for filmmakers to upload freely their films and make a living out of it; because they had found their true audience through that platform. But a business is a business and must keep on being so or it will die… terrible but true… it’s not personal, it’s “business”. I do not really share this vision of how business should be done. But maybe I’m too young and too idealistic and believe in the potential of what could be and what could be done. My take is that as more people “consume” more “content” and that “new content” starts to resemble things that we have already seen, people will seek more innovative pictures more interesting and new stories that they hadn’t seen before. That’s why NETFLIX should really start to think about the small creator that with a few friends makes a new film. Even if that means that they have to change all their business plan. Even if that means that they have to rebuild from scratch their whole company and how it works. Even if that means that they need to die to be reborn again.

3. Or maybe another new company will take up the lead and truly offer valuable and meaningful stories that people (are – for some of us) will be looking for.

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What determines the VALUE of STUFF… How Much is Your Movie is Worth?

What determines the VALUE of STUFF… How Much is Your Movie is Worth?

I believe that the value of stuff is given by the service or use it provides to society. It is about how much does society need that particular product.

The price of a shirt

Ok, so if I need a shirt in order to don’t walk naked in the middle of the street, i will need to pay X money to get that shirt. This quantity I’m paying is making up for the costs of the shirt and for the profit of the manufacturer , distributor, etc.

This help everyone in the making-shirts-business to still keep doing shirt business. As simple as that.

But then if that were the case for everything, every product would have an objectively reasonable price… and this is not the case. This almost never the case.

Then question arises…

What determined the worth r value of a product, what determines its price?

In a digital world controlled by algorithms that constantly change their parameters to fit the price that the potential consumer is ready to pay, we could simply say that it’s the algorithm’s fault that I pay 10X the price that I believe is reasonable for an Amazon product.

Because it is only from Massimo Dutti?

But that would be just too simple to be true. The truth is much more complex and diverse. Not a white or black tone, but a middle grey with a lot of shades.

The 10X priced shirt

So, why do we pay for a product that we believe we should pay X dollars, 10X it’s “reasonable price”?

There are a lot of reasons for this, a lot marketing strategies that are applied along the way, but I will only concentrate on this post in one technique that I find really interesting.

Tell a story before you make sell

That technique is the one of telling a story with the product you want to sell.

It is the same technique that has been used to sell to you the iPhone or Mac where you are currently reading this post, it is the same technique that has been used to create multi-billion dollar empire of Ralph Lauren and it is why so many people buy merchandising.

What’s behind telling a story to sell a product?

What is Apple really doing when you watch a TV commercial of the new iPhone or Apple watch?

What they are doing is only show you the product at the end of the commercial, because they know the importance of communicating ideas effectively so the viewer identifies himself with the values and the belief system that the brand is trying to communicate.

What do we see in an iPhone commercial? People having fun and wonderful experiences (may they be worries experiences or leisure experiences) and technology not getting in the way of that and guaranteeing that wonderful experience through a wonderful design.

Because that it’s what’s important: ideas, feelings because they help us understand the world we live in.

Because let’s not lie to ourselves, we don’t have a clue on how this world works in it’s fullest detail, we don’t know our purpose in this chaotic but yet organised arbitrary world.

Because we want to understand who we are, what is our core essence, what we are made of and more importantly, why we are here.

Because we don’t know who we are, because we don’t know why we are here.

Because they help us simplify reality. Because we get the feeling that we belong.

That is what good brands specialize in. That’s why their prices are so high. That’s why you’ll keep on buying them no matter what.

See you next time!

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