🍿 Purple Horizons Future Study: Netflix
Reimagining Entertainment: Netflix's Odyssey from DVDs to Digital Dominance and Beyond
Netflix’s business transformation story is an example of how a company can leverage technology to exponentially evolve and redefine an entire industry. They are an outstanding example of a company that has fully embraced a Purple Horizons mentality.
Beginning as a DVD rental-by-mail service in the late 1990s, Netflix challenged the prevailing late-fee model that was a cornerstone for video rental businesses, offering instead a subscription-based model with unlimited rentals.
However, the truly groundbreaking shift began in the mid-2000s, when Netflix seized the emerging opportunities of high-speed internet to pivot to an online streaming model. This move revolutionized the way audiences consumed media, giving them the freedom to watch an extensive library of TV shows and movies anytime, anywhere, marking the onset of ‘binge-watching’ culture.
Currently, Netflix continues to utilize technology to elevate the user experience, employing complex algorithms to personalize content recommendations, creating a unique, customized experience for each viewer. The company’s journey so far from a DVD-by-mail service to a streaming giant and significant content producer demonstrates the power of embracing technological changes to drive exponential business transformation.
So what’s next? How can Netflix continue to explore Purple Horizons?
Here are three ways Netflix can harness emerging tech to fuel its growth trajectory in the next decade:
Extended Reality (XR) Streaming:
Netflix can push boundaries by integrating Extended Reality (comprising Virtual Reality, Augmented Reality, and Mixed Reality) into its content streaming. Imagine being able to “step into” a scene of “Stranger Things” or walking the halls of “The Crown’s” Buckingham Palace!
Application: Using XR headsets, viewers can enjoy immersive experiences of their favorite shows. Netflix Originals could even produce content specifically designed for XR, offering a 360-degree viewing experience. AR could also allow users to interact with virtual characters in their living spaces or even bring up stats and info about a show in real-time.
Future Potential: As XR technology becomes more mainstream and affordable, this immersive form of content delivery could redefine ‘binge-watching’, offering a truly enveloping experience.
Blockchain and Decentralized Distribution:
Although blockchain is mostly currently associated with cryptocurrencies, its decentralized nature offers potential beyond finance. For Netflix, blockchain could revolutionize content distribution and user payments.
Application: By decentralizing distribution, Netflix can provide content without any central server, ensuring smoother streaming, especially in regions with lower bandwidth. This not only reduces costs but also can prevent outages and server-based issues. Additionally, incorporating cryptocurrency payments can cater to a global audience without traditional banking systems.
Future Potential: Blockchain can also help in combating piracy, ensuring content creators get their rightful royalties every time content is accessed, fostering trust within the entertainment industry.
AI-driven Personalized Content Creation:
While Netflix already uses AI for content recommendations, the next step is leveraging AI in content creation. AI-driven algorithms can analyze vast amounts of viewer data to determine plot points, character arcs, and even dialogues that resonate most with audiences.
Application: By analyzing viewing habits, preferences, pauses, rewatches, and more, Netflix can produce content that is hyper-tailored to viewer desires. It could even lead to dynamic shows that adapt in real-time based on user feedback or branching storylines where AI predicts and suggests viewer-preferred outcomes.
Future Potential: As AI models become more sophisticated, we might see the emergence of ‘living’ series or movies that evolve over time, ensuring that content remains evergreen and continually engaging.
Harnessing these emerging tech trends could position Netflix not just as a content delivery platform, but as a pioneer shaping the very future of entertainment.
How can emerging tech help transform your business?