We said “no” but now we change our minds
Two years ago, Netflix completely shut down the idea of offering offline shows and movies. So why offer it now? I see three probable reasons:
- As we are coming out of the recession, more people are traveling. Whether jetting off to Paris on a plane with nothing to do or travelling across the country in a van full of screaming kids, offline movies are the perfect solution. This, however, wouldn’t be that much of an incentive without the threat of switching that comes with increased competition. And that leads to number two…
- Amazon is gaining on Netflix’s tail with its Amazon Prime Video. In September 2015, Amazon unveiled its offline access offering. So why didn’t everyone go crazy? Maybe it was because it didn’t offer the shows that the users wanted to see but, in my opinion, it was probably a positioning issue. The public sees Amazon as a buy-on-the-cheap online store as opposed to a streaming service.
- The third reason is that, as Netflix is expanding globally, it needs to reach the most amount of people in order to capitalize on economies of scale and make its long tail scheme profitable. In developing markets, where people rarely have access to internet at home, offering offline Netflix that they can download when users have access to WiFi in the library or at school and watch later is one way to penetrate the market. Yet, this too is about staying ahead of the competition (aka Amazon Prime Video).
Timing genius or just coincidence?
Coming out with this new unveil on November 30th comes just before the biggest shopping season. You were wondering what to buy your backpacking friend for the holidays? A one-year Netflix subscription sounds like just the thing! Or maybe you just decide that in the spirit of giving, you’ll splurge on yourself a bit as well. And hey, who can blame you? You have been tightening your belt during the Great Recession for eight years. We are finally getting out of it and the future is looking up. That’s the other great genius of this unveil: a subscription service is a long-term commitment. As the economy is expanding, potential subscribers are reassured that they will probably be able to afford it in the future.
Yet, why not Amazon?
Several studies note that Amazon has more variety. Amazon was also the first to come out with offline streaming and while it’s not in as many countries are Netflix around the world, it is right on its heels. Regardless, most of my friends only have Netflix and do not subscribe to Amazon Prime Video. What about you: Amazon Prime Video, Netflix or both? Feel free to comment below!