In a world where instant gratification for little money is a necessity for companies today, many have fallen by the way side because they could not keep up. Today, the pioneers into the instant streaming services have become the guiding business model for companies wanting to stay competitive in the instant gratification world that has risen with the millennial generation.
Netflix, in particular, along with Hulu and Amazon Prime are companies that have forged through the weeds of the traditional business model and have gained unquestionable success because of it.
Netflix, now worth more than CBS, was the first company to create instant streaming services for your favorite TV shows and movies. Though before that, they were one of the first companies to also start the customizable mailer trend that you now see across many business types including fashion, makeup, technology and even pet toys. However, Netflix now gains more momentum for its stock’s growth, now around $110 per share, through the instant streaming service, which is available on computers, smart phones, tablets and televisions.
Companies like Netflix have changed the way that the consumer receives their content. Over 75 percent of people 18-32 prefer instant streaming services to traditional cable television.
One of the respondents to the survey stated, “It’s convenient, less expensive, and you don’t have to deal with commercials interrupting your show.”
In the same survey, less than 13 percent of the respondents did not have an instant streaming service subscription (e.g. Netflix, Hulu, Amazon Prime and HBO). Also over 80 percent had at least a subscription to Netflix.
More companies today have been adopting this business model to serve the millennia’s instant gratification needs.
To keep up with the trend of online versus cable, service providers like Comcast and Verizon have changed their pricing structure – increasing the cost of Internet or bundling the cost to get cable and Internet for cheaper than just one of the services. With less people requiring the need for cable due the availability of shows and movies online, service providers have needed to change to keep themselves up with the trend to stay profitable.
This drastic change in only the past five years would have to make someone consider – are companies going to be able to keep up with the increasing needs of instant gratification? How long until the next innovative trend appears?