Post 8: Roger's Diffusion of Innovations Theory Applied to Netflix

     

       

    Roger's Diffusion of Innovations theory can track innovations from their earliest stages of adoption to it's height of popularity and then their decline. This theory can be applied to the adoption and rise of Netflix throughout the years. In 1997, Marc Randolph and Reed Hastings pioneered Netflix as a solution to the high late rental fees at Blockbuster. Early adopters patronized Netflix in 1998 when it was a website selling and renting DVDs. Between 1999 and 2002 the early majority started using Netflix because there was a monthly subscription service and a recommendations system which used ratings to introduce new shows and movies to people based on their preferences. In addition, the company went public during this time which helped them to steadily gain followers. By 2013 late adopters began using Netflix when the streaming service began producing their own original content. Since these shows and movies could only be watched on Netflix, late adopters joined so that they could watch the exclusive content. By 2018 Netflix began its maturation stage with a slight decline due to the popularity of other streaming services such as Hulu, HBO Max, and Amazon Prime. The slight decline can also be attributed to the loss of many fan favorite shows and movies in order to make room for more of Netflix's original content. While the popularity of Netflix has decreased a bit, the company is yet to reach a state of saturation. An estimated 28% of American adults have a Netflix account which means that in the US alone there are still 60 million subscribers. While Netflix hasn't penetrated to 85% of the US population as Roger's Diffusion of Innovations theory suggests, there is still a significant amount of people championing the streaming service. I think it will take at least another decade before Netflix might see a saturation period. As a result of Covid-19 and months of quarantining inside the house, there has been an resurgence in using streaming services such as Netflix. It is very interesting to see how the company has changed from its early beginnings and how many people have bought subscriptions to it over the years. Over the years, Netflix has changed the way people access entertainment and consume content. 

http://www.edinboronow.com/article/netflix-the-good-the-bad-the-addictive

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https://www.thestreet.com/technology/history-of-netflix-15091518

https://muse.jhu.edu/article/553418/summary

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https://www.investors.com/news/technology/click/netflix-batting-average-for-quality-original-shows-declining/

https://www.comparitech.com/blog/vpn-privacy/netflix-statistics-facts-figures/