In a recent article, HBR took a swipe at Netflix for pushing its own content too hard and not increasing the availability of movies by reducing the outside offering (see HBR on Netflix). But this feels like a calculated, strategic move by the streaming-service: create enough, high-quality content that users will want to use the platform solely to have access to that content without necessarily wanting to watch anything else.
Netflix has been able to increase the share-of-habit of its customers enough that subscribers are happy enough with just the Netflix content. There is clearly no need for the company to increase the offering outside of its own content and thus not having to pay the royalty fees associated with outside content.
A Parrot Analytics data set provides proof that Netflix is changing the rules of the game and that them creating their own content will drive the viewers’ preferences:
9 out of the top 10 digital TV Shows in the US are Netflix. Clear data proving that the company’s decision to focus on their own producing is paying off. Netflix is changing the rules, and sometimes that is the road to dominance.