Online over-the-top streaming platform Netflix gained its popularity in Hong Kong and even around the world as it is not geographically and device-limited. The easy accessibility of the large library of contents and archives across different genres and countries allows users to deeply engage with any media content that suits their preferences. Being a cinephile, subscribing to Netflix can be much cheaper when compared with purchasing tickets at the cinema, and the feature of a family-sharing plan can also provide users with a more cost-effective way of consuming media content.
With the large archive of media content, finding suitable movies and shows can be as hard as finding a needle in a haystack. Indeed, as stated on the official website, Netflix has managed to collect user preference data through recommendation algorithms. This significantly helped Netflix to sort out users’ interactions with the platform and hence prioritise the best content for them. While on the other hand, users will receive tailored playlists or series thumbnails that favour their taste. For instance, your favourite actor may appear as the thumbnail of his starred drama series, as the platform has captured your previous viewing data of the same actor.
Online streaming platforms have become the trend in viewing media content not only because of how user-friendly the platforms are but also contributed of the media convergence that allows people to seamlessly access various media contents through a single device. As Henry Jenkin mentioned on his personal website, Convergence allows a migratory behavior of media audiences who would go almost anywhere in search of the kinds of entertainment experiences they wanted.’ The invention of smartphone has accelerated the interaction between various media forms, while people are allowed to download applications with distinct media forms and converge into one single device. Netflix as a downloadable application also allows users to access media contents via phone, which makes the overall viewing experience much more dependent on users.
‘Watching the movie was the best part of going to a video store, the worst part was driving back and forth. So, let’s take away all the barriers and use tech to create joy.’ -Ted Sarando, The Media Show
Users can search for movies and TV series of various genres and topics on Netflix in Hong Kong, yet it is obvious that there has been a domination of Asian content, in particular South Korean content recently. Take the top 10 most watched TV dramas in Hong Kong from November 20 to 26 as an example, South Korean content has accounted for 4 positions on the list, while ‘Squid Game: The Challenge: Season 1’ can also be regarded as K-related reality show as it was inspired the award-winning drama ‘Squid Game’. This proved that viewers in Hong Kong were tempted to use Netflix as their major source of accessing K-contents. For instance, the drama ‘Castaway Diva’ and ‘Strong Girl Nam-soon’ are on the top 10 list for weeks, with ranking at the Top 10 in TV in 25 countries on Netflix. News reported in April this year revealed Netflix’s decision on investing 2.5 billion in the coming four years in light of producing more K-dramas, movies and reality shows.
While this seems to be a great business opportunity for Netflix to invest in its market in East Asian countries, some Netflix supporters who once subscribed to the platform for its Western content started to feel repugnant of Netflix’s shifting attention to investment. Along with the rise of more streaming platform competitors like Disney+ and Amazon Prime TV, users have more choices in selecting the perfect channel that suits their preferences. Netflix no longer dominates the market and can barely engage their long term users. A survey revealed that in 2022, long-term subscribers had accounted for 13 percent of cancellations, and the total cancellations reached 3.6 million people at the end of the year, and also have an increase from 2.5 million cancellations in the previous five quarters. Some complained about how Netflix ended the license of some of the popular content from its archives while attempting to increase the subscription price of the platform along with more restrictions in terms of family sharing, for instance, the Netflix Household.
It is undeniable that Netflix is facing a hurdle in minimising its churn rate recently, with more competitors to fight with, yet the shifting trend of people to consume media content from TV and cinema to online streaming platforms still poses positive effects on the platform, and at least lazy people like me will continue to pay for a Netflix subscription in the following year in return for a more convenient viewing experience.