The two consequences of the “Netflix effect”

The two consequences of the "Netflix effect"

Netflix takes seven months operating in Spain. What has led you to this coming? So far, two clear consequences. Braking subscribers Selection, and growth in the rental market and purchase

On October 20, 2015, Netflix reached Spain. Months earlier, when the announcement was made official, actors video on demand began to lie, to a greater or lesser extent, to shake. When Netflix coughs, clinking Telefonica doorknobs,, Filmin and company. By similarity in the model, to it was who had more cost you fall sleep, and he noted in July, when after the announcement issued a statement to “welcome” to Netflix .

the prophecy was fulfilled, and subscriptions to Wuaki Selection suffered with the arrival of Netflix the strategy was clear: highlight its differentiating points and appear calm . “We will not make any special marketing campaign by the arrival of Netflix” from they said at the time.

However, other marketing campaigns continuistas views followed until then, as which was high in service with the delivery of a CC and a new strategy, as the partnership with Orange, the operator who ran out chair in the musical dance, victim of Movistar and the purchase of Canal +, and the agreement Vodafone with Netflix.

it has been seven months since the landing, and we were able to talk with officials of the Catalan company, Japanese investment, to know the impact it has had Netflix on their service.

The advantage still maintaining

 Wuaki tv

despite the many similarities in their product, there is a perceptible difference between the end user and Netflix: Netflix while the monthly price is closed, with no possibility of increase in live a monthly subscription plan with the possibility of movie rentals and purchases.

the main consequence of the arrival of Netflix to is to move the focus of the monthly subscriptions to the rental and purchase of new releases that’s where the timing of the movie studios, which still favor enter. The minimum time that must pass since a film is released in the cinema until it reaches a digital service is four months, but only if they include rent and / or purchase.

In this category fall iTunes ,, the video Movistar +, etc. Netflix, which is a streaming service without these options, you must wait a minimum of eighteen months. As part of Wuaki TV which is accessed through the monthly subscription, Wuaki Selection. So never (or at least until they change the rules) we can see recent releases on Netflix, or may be included in the flat rate service Rakuten. During the first year and a half, playing checkout

it is in that crack where has found a relief “Netflix effect” discussed, and therefore braking with drop included, number of subscribers: market movie rentals and purchases, with prices of between 0.99 and 3.99 euros depending on the category title and now has grown to since the arrival of Netflix , we are assured by internal company sources. So the next step for Wuaki is to try to accelerate time and shorten the four months required.

The path of own production

 originals netflix 2016

House of Cards, one of the biggest hits of Netflix.

Given that one of the biggest obstacles, if not the largest, for streaming services is the figure of the studios and production, Netflix shot the most logical way, but certainly not comfortable: own productions . Thus, in recent years they have left titles like Orange Is the New Black, House of Cards, Black Mirror, Arrested Development, Marco Polo or Narcos among many others. Series justifying very largely monthly subscription.

The path of creating content rather than simply buying has advantages, but much complexity The problem for is that its location and dimension (Barcelona, ​​170 employees) are far from Netflix (California, 3700 employees), so the path of the own productions is not so “easy”. At the moment they begin with coproductions, before giving a hypothetical leap to full own production

This adds another stone in the shoe. The recent proposal from the European Union to require a minimum of 20% of productions made in Europe streaming services operating in the continent.

for Netflix, it would be problematic although it has capacity to accelerate its work in Europe, and already has titles such as the recent ‘Marseille’ with French appellation of origin, as well as others who come: ‘the Crown’ in United Kingdom , ‘Cable Girls’ in Spain or ‘Dark’ in Germany. To, the problem would have another dimension, failing to see if it would affect in the same way a guideline so, considering its size and the fact of being born in Europe, with all that it entails facing employment generated and taxes.


The two consequences of the “Netflix effect”
Source: english  
June 10, 2016

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