Justin Kim

Campbell Hall

11th grade

The rise of Netflix portends downfall of traditional viewing

Online streaming giant Netflix has completely transformed the consumption of home entertainment. It has eliminated the tedious, and to some, complex process of purchasing or renting a movie. The ways we enjoy and spend our free time have never been this convenient and practical before.

Devoting so much time into Netflix, our lifestyles revolve around it as a fundamental necessity. But how are other parts of showbiz affected by Netflix? Is the streaming service a benefit or a drawback to the industries behind movies and TV?

According to AEI, the American Enterprise Institute, the immense growth of Netflix has indeed been so harmful to other companies and services, otherwise known as the “Netflix effect.” The most obvious industry that suffered from the “Netflix effect” was the videotape and DVD rental industry, such as American-based provider Blockbuster. Even pay-TV now is being ditched for streaming video.

A similar concern is being expressed over the welfare and popularity of movie theaters. However, analysts and CEOs say that movie-going is not affected at all by the affordability and convenience of online streaming. CEO of UK movie theater chain Vue Cinemas, Tim Richards, told CNBC in 2016 that their competition was inclusive of other recreational activities and places, such as sporting events, and not the Internet.

IMAX’s CEO Richard Gelfond similarly commented that their theaters would “play into the Netflix issue”; consumers could either “chain themselves to the couch” or see a new movie with up-to-date technology including great picture quality and surround-sound. So, although the general public has to visit the local theater for the latest box-office hits, most content that was only featured on pay-TV or cable is now available to Netflix users.

Netflix is aggressively expanding into new genres including comedy, reality shows, and international films. CEO Reed Hastings said that 1.75 billion dollars have been spent to license foreign shows and create original content. Even the range of stand-up comedy is heavily impacted by Netflix’s growth; Netflix has essentially taken the spotlight away from traditional homes for comedy specials such as HBO and Comedy Central.

Most professional comedians have now signed with Netflix instead of cable channels to release their work. Although most forms of entertainment now have lost their original source and the experience behind them, it is necessary for Netflix subscribers to understand the effort projected into each episode or movie they binge-watch. With today’s technology providing us with any entertainment we want, it’s substantial to recognize and appreciate actively, not passively, the ambitions behind what we watch.

<Justin Kim>