How Netflix Became a $250B+ Empire?

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• Growth Case Study: How Netflix Became a $250B+ Empire?

• What’s Up with Tech: Paywall Alexa, Ethereum ETFs Ignite

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Growth Case Study 🌱

How Netflix Became a $250B+ Empire?

It's 1997, and a small movie rental company is fighting tooth and nail to keep afloat. Little did they know that almost three decades later, they'd become the biggest movie streaming platform in the world – a $240 billion empire!

This, my friends, is the story of Netflix and how two visionary founders built a streaming juggernaut by staying flexible in a constantly changing market.

From day one, Netflix has been a trailblazer. Here are a few ways they've adapted to stay at the top of their game:

💥 The Algorithm Advantage: In 2000, before we even started watching movies online, Netflix launched the first movie recommendation algorithm, Cinematch. Users would rate the movies they watched, and Cinematch would suggest ones based on their tastes. Not only did this help users discover movies they'd love, but it also helped Netflix promote lesser-known flicks they couldn't afford to send out millions of copies of.

💥 Streaming Pioneers: In 2007, Netflix created the first video streaming service. While DVDs were still their bread and butter back then, streaming opened up a world of possibilities.

💥 Going Global: When their business was restricted to DVDs, they were confined to the USA. But with streaming, it became a breeze to go international. So, in 2012, Netflix took their show on the road, and now they're available in over 190 countries worldwide, with international streaming accounting for a significant chunk of their revenue.

💥 Original Content Kings: In 2011, Netflix started creating their own original content to avoid licensing hassles. Their first original, "House of Cards," made them a powerhouse, becoming the first online series to score an Emmy nomination. A whopping 55% of Netflix's content is original, giving them exclusive ownership and making their platform a must-have for anyone who wants to watch what everyone's talking about, like "Stranger Things" or "Squid Games."

While Netflix is still at the top with over 200 streaming platforms nipping at their heels, there are questions about their future and whether they're in decline.

In 2022, they lost subscribers for the first time in a decade, leading some to declare that "Netflix isn't dying, it's already dead"... Ouch!

So, what's really going on? Here are a few missteps that have ruffled some feathers:

💢 Cracking down on password sharing: Netflix used to encourage users to share their accounts, but now they're tightening the reins on this practice.

💢 Price hikes: In 2023, they increased the Basic plan price from $9.99 to $11.99, and more hikes may be on the horizon.

💢 Introducing ads: One of the reasons Netflix is so popular is because they've never had ads. But in 2022, they launched a $6.99/month ad-supported plan, despite the CEO previously swearing they'd "never" have ads.

While customers aren't thrilled with these changes, it's unlikely that Netflix will suffer a Blockbuster-esque demise.

Sure, they lost subscribers, but had they not suspended their service in Russia (forfeiting 700K subscribers) to protest the Ukraine war, they would have remained in the positive.

Netflix has always been a master of adaptation, and we can't wait to see their next move. This is the company that went from a small rental shop to a $250 billion streaming empire by staying flexible and innovative. Let's watch how this story unfolds!

What’s Up with Tech🖥️

Paywall Alexa: 💰 Amazon's upcoming AI-powered Alexa will be a paid subscription service, no more free rides.

Ad-versity: 💸 Get ready to see ads in Google's AI-powered search result overviews, 'cause nothing's truly free.

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Ethereum ETFs Ignite: 🚀 The SEC's request for updated documents has analysts predicting a 75% chance of a spot Ether ETF approval, lighting up the market.

AI Skills Pay Bills: 💰💻 Jobs requiring AI expertise pay around 25% more, according to a PwC study, making AI upskilling a lucrative move.

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