Netflix continues to dominate the entertainment streaming landscape with the most subscribers, but why is it still the king of streaming in 2021?
The streaming market has been growing over the last couple of years, with new competitors emerging to take Netflix on and vie for its number one spot. Despite that, Netflix stands firm at the top.
In this article we’ll cover all the factors that make Netflix the standout streaming service to date, despite the challenges it has faced in the past year.
How Netflix Fares Against Its Competitors
It's no secret that Netflix dominates the streaming wars with an army of more than 200 million subscribers—the most in the market. If anything, the war is among Netflix's competitors as Netflix leads the market significantly, despite new competitors like Paramount+.
And the streaming giant's reign doesn't seem to be under threat for the time being. While Netflix has a contender in Disney+, which has about 100 million subscribers, Disney+'s subscriber growth is slowing after a price hike.
And when it comes to original content, Netflix seems to be getting it right if its accolades are anything to go by. Since Netflix won seven Academy Awards in 2021, nearly doubling its all-time tally, it now officially has the most Oscar wins among its competitors.
Netflix Continues to Grow in 2021, Despite Challenges
Like many companies, Netflix had a rough 2020. In a Q1 2021 earnings interview, Netflix CFO Spencer Neumann admitted the company lacked new content coming into the year as a result of pandemic-delayed production. This, he stated, led to the slower-than-expected membership growth reflected in Netflix's Q1 results.
However, if you think this means Netflix didn't add enough subscribers, you're wrong. The company enjoyed unprecedented membership growth as a result of the pandemic in 2020.
Netflix's shareholder letter reports the company saw over 40 million new subscribers join the streaming service, 73% of which said they will definitely keep the service going forward, according to a "2021 Predicting the Pandemic" report from Hub Entertainment Research.
In other words, despite failing to meet its forecast, Netflix ended 2020 with a bang: a larger membership of 208 million subscribers and a bigger revenue base than it would otherwise have had, which translated to record revenues in the first quarter of 2021.
Fueled by this growth in revenue, Netflix now seeks financial stability. The company plans to be cash-flow neutral in 2021 and cash-flow positive every year thereafter, hoping it will no longer need external financing to fund its operations. It will also consider share buybacks for the first time since 2011.
Netflix Is Adding New Functionality in 2021
Netflix has added a host of features to its robust platform to enhance your streaming experience. These include the Play Something and Downloads For You features, as well as revamped Kids Profiles. Here's what these features are about:
Play Something
Netflix's Play Something is a shuffle button that helps you fast-track your choice of what to watch, based on your viewing habits. The feature shows you something you're already watching, a new series or film similar to the content you've been watching, or even a show or film you haven't completed.
Downloads For You
The Downloads For You feature automatically downloads TV shows and movies that you might enjoy to your mobile, based on what you watch on Netflix. This feature comes in handy when you're in an area without an internet connection or with bad reception.
Kids Profiles
Netflix is helping you keep streaming safe for your children by giving you the option of creating a profile for your kids. The Kids Profile feature allows you to set an age gate to ensure your little ones only watch content that is suitable for them.
In the Works: N-Plus
There are talks that Netflix is working on a feature called N-Plus, which may allow you to create custom playlists containing movies and TV episodes that you can share with others. Think of it like a playlist with all the best TV episodes for whatever mood you're in. Netflix is yet to confirm specific details about this feature.
Netflix Continues to Focus on Quality Exclusive Content
If there's anything living in a pandemic-stricken world has taught us, it's the importance of entertainment. With everyone being home longer than they're used to, unable to go to the movie theater or do much else to entertain themselves like they did before, there's been a spike in demand for online entertainment.
One Movie Released Every Week
Netflix wants to save you from your misery by bringing the theater into your home with consistent releases of quality content. The streaming service is known to churn out tons of movies and TV shows to keep you coming back for more every month, but this time, Netflix has promised to release a new movie every week of 2021.
These include both original productions and a few exciting acquisitions—71 titles in total. It's an ambitious plan, but one you can look forward to, considering many of these are major movies you probably would've loved to see in the theaters, or highly anticipated films that had been pushed back since the start of the pandemic.
A Greater Focus on Netflix Originals
As the entertainment industry scrambles amid talks of the death of the cinema as we know it, Netflix pushes ahead to take advantage of this new norm.
And while Netflix saw its growth slow in 2020, the company has since bounced back and resumed production in all markets. Netflix will spend $17 billion on content, placing more focus on originals than before.
With 15 Academy Awards to date, Netflix is clearly doing something right, and it's safe to say you can expect some great movies from Netflix Originals.
Netflix: The Best Streaming Service in 2021
Despite taking a few hits in 2020, Netflix continues to stay on top of the streaming wars, thanks to all the tools in its arsenal. Many have tried, but none have been successful in toppling its head. And with Netflix being so far ahead of its competitors, who will stop the streaming giant?