Bradley University professor talks about the rapid rise of the the video streaming service and its implications on future of media
By Jeff Plotner
Netflix has announced it has reached over 50 million subscribers in 40 countries. That is compared to the 56 million U.S. subscribers to premium cable channels, according to Nielson, a television viewer measurement company.
Are we witnessing the streaming video service revolution? Ali Zohoori, Television Arts professor at Bradley University and mass communications expert, seems to think so.
“Netflix is copying the HBO model, which is an old model without commercials,” Zohoori said.
The rate for existing Netflix subscribers is $7.99 a month, but the company recently announced a price hike of $1 for new members, granting a two year price amnesty to their current customers.
One reason for the Phoenix-like rise of Netflix is its variety and abundance of content that could keep a couch potato indefinitely occupied. In September 2014 Netflix invested more than $2 million in their content library, a 74 percent increase in spending compared to the 2010 budget issued by the company.
This relatively low subscription price has allowed the 50 million subscribers benchmark because everyone with Internet, which is the majority of the American population and the slightly lagging global population, has access to the media streaming services and therefore, more content choices.
Data for chart taken from Forbes Magazine
“People who don’t want to pay for cable have a very limited choice in terms of quality. They are condemned to watch the network. Programs produced by Netflix like House of Cards offer quality programming,” Zohoori said. “Netflix functions as an aggregator and when you have more choice you feel more satisfied. It does, psychologically, give you a good feeling. And the illusion of having so many choices makes the viewer feel satisfied.”