THE FALL OF NETWORK TELEVISION
Netflix is living in a category that has seen major change in the last two decades. Streaming services are currently coming out on top, but it is hard for them to differentiate themselves from each other. Netflix, HBO, and Hulu are all making quality original content, and the internet TV consumer is subscribing to many, if not all, of the streaming competitors.
THE NEXT COMPETITOR
Social media is the next phase of entertainment content. These platforms have invested heavily into mobile video and quick, entertaining content that users are engaging with up to 17 times during their normal day. People are getting lost in their social feeds, spending an average of 5 hours a day scrolling for entertainment instead of watching Netflix.
Netflix is already social. People love to talk about shows they are watching and get FOMO when they aren't caught up on the latest series. There are even shareable listicles about Netflix's newest releases. It is social everywhere, that is, except for on its own platform. Netflix has an opportunity to be the platform for conversations already happening about its content.
Social watchers are people who talk about and hold each other accountable for what they watch. They often take to social media to connect with each other and discuss shows. Social watchers can be broken down into two segments:
The entertainment-literate view content curation as a hobby. They spend a lot of their time searching for new music, movies, and shows and pride themselves on discovering new stuff to show their friends.
Trend-chasers, however, are unwilling to invest the time to discover new shows for themselves and are happy to follow the suggestions of the entertainment literate. They prefer these suggestions to the recommendations that Netflix's algorithm provides.
HOW ARE THEY INTERACTING WITH NETFLIX?
Dual screening: Most social watchers surf the web, post on social media, and text their friends while watching TV.
Shared accounts: 30% of Netflix's users share their log in information, keeping Netflix from collecting subscription fees from many of its viewers.
Third party plug-ins: Many social watchers use Google Chrome extensions to customize their watching experience.
Hacking the algorithm: Social watchers hack Netflix's recommendation algorithm by creating profiles based on different moods and using URL codes to find hidden genres.
THE NETFLIX EXCHANGE
A Netflix app feature that allows social watchers to engage with their network while they watch.
1 • Comment on shows in real time 2 • Look back at conversations with friends 3 • See what others are watching
1 • Meme Generator 2 • Playlists 3 • Highlight Reels