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Netflix Drives the Cable-Cutting Generation
By: Ryan Stoldt
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Since the launch of Netflix, industry leaders have been talking about the fear of the cable-cutting generation. This trend has vastly changed the world of entertainment television. Definitions of “television” have changed to incorporate cable-cutters. Nielsen ratings have changed to incorporate cable-cutters. Entertainment organizations have changed because of this generation.
 
Cable-cutters are people that break away from traditional media outlets like cable and dish because of the access to entertainment online. The movement is mostly financially based. Cable is expensive. Internet is expensive. Internet is essential to life, so people are finding that having access to shows (through cheap subscriptions) via the Internet is an acceptable substitute to cable. Netflix is doing as much as they can to ensure this movement.
 
Earlier this morning, Netflix officially announced that 15 new episodes of “Arrested Development” will be added to the site on May 26, 2013. The show’s cult following (myself included) obviously went insane over this announcement. The biggest news surrounding this is that “Arrested Development” will be released as a Netflix exclusive. This isn’t the first show Netflix has exclusively owned rights to, and it’s a trend that is bringing more and more people to the brand.
 
Netflix focuses on the one thing that cable does not: customer loyalty.
 
They attempt to connect with and understand their customers. This is apparent as Netflix adds more and more content that users are asking for as well as the original content created exclusively for the brand.
 
They provide a completely ad-free experience in a medium that is overrun with advertisements. This is huge for paying customers. Traditional television media have seemingly endless commercial breaks. Hulu (Netflix’s biggest rival for electronic television) also incorporates commercial breaks as well as a site overrun with banner ads.
 
The overall experience that Netflix provides is catering more and more toward the cable-cutting generation. They are driving customer loyalty through a basic understanding of their market. As entertainment continues to progress into the digital age, Hulu, dish, and cable providers need to look at how the connect to their customers and consider building these relationships.


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About the Author
Ryan Stoldt is a digital strategist with a B.A. in Integrated Marketing Communications from Wichita State University. Find him online here
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