Netfilx is a video on demand service, where you can watch all the high rated movies , Tv series etc with a monthly subscription.
Normally a movie gain their profit through selling their tickets. but how the netflix earn? here we going to cover up all about the Netflix.
In the Netflix the contents are in three category !
1.) Licensed, 2nd Run
2.) Licensed, Original
3.) Self produced original
1.) Licensed 2 nd run
The Netflix purchase the License of the movies after the release . They purchase the online streaming rights because they only need to pay the license fee which depends on the popularity of the movie and time period of licensing
2.) Licensed Original
In this category the movies were producing by independent producers. but the distribution rights acquired by the Netflix and then release through online. Netflix have to spend a lot of money for to acquire these type of rights as compared to 2 nd run license
3.)Self produced original
Neflix started to make their own contents from 2016 , so the netflix have all the rights to that contents from production to distribution.
Stranger things was their first original content which was released in 2016 , Netflix spent 50 $ million for the production.
There after they focused to produce their original contents through choosing best cast and crew to make the best contents.
The Netflix ceo David wells stated that in 2018 the netflix will produce 700 original tv series which will cost around 7-8$ billion . if we conver this as india currency It will be around 50,000 crores.
But the question is if they invest this much, how they can recover ?
Basically Netflix gain their profite through the subscription model. Every users should buy a subscription to view the contents.
As of july 2018 the Netflix have 13 Crores subscribers and it’s still counting every moment
In india Netflix have 3 subscription plans include 500, 650, 800, per month ,which have different benefits based on these charges. for an example we assume 1 lakh members newly joined because of intrested with a paticular tv series which is produced with a budget 30 crores.
Then if a person choosing a 1 year subscription so there will be an average charge of 7000rs per year so the revenue of netflix with a 1 lakh people multiplied by 7000 so there will be 70 crores. after they will get a profit of 40 crores after producing a 30 crore in a tv series
So this is how the Netflix make profit. and they keep making quality contents to retain more subscribers
Though the movies and series are freely available over the Internet?
Here is why , because Netflix contents and algorithm is good as everyone starts addicting to it. also the suggestions are best on the netflix of the past usage.
Netflix mainly starting targets working proffesionals. because they have only less time to search over internet so proffesionals will choose the netflix service for a hassle free experience
Future scope of netflix ?
Taking about the future scope of netflix . in America 60% of peoples using Netflix more than Cable/Satellite Tv’s .The rising amount of internet users may trigger that people will start use services like this on the future
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