Can Netflix Change the Media Industry, or Will It Stay In a Funk?

In Medias Res was asked this week: in what areas of the media industry are there opportunities for innovation?

Reed Hastings, CEO and entrepreneur of Netflix gives good advice about being an entrepreneur in the media industry. He also gives good tips and his visions for Netflix, which leaves way to improvement within the media industry. When asked his advice on becoming a successful entrepreneur he remarked, “creating freedom and responsibility” in the work place. One example of freedom and responsibility is having no vacation policy. If you work for Netflix, you don’t have a set amount of days you can take off for vacation according to Reed Hastings. Yet freedom and responsibility aren’t the only improvements being made within Netflix and the media industry. Reed Hastings has some visions that could change the online streaming of TV and movies forever.

Entrepreneurs have taken over the media industry. A rise in the use of social networking, Facebook, Twitter, and Google +, but social media isn’t the only sub-industry that has effective entrepreneurs. Netflix’s Reed Hastings has two visions for Netflix. Netflix is taking advantage of the fact that the internet has evolved our culture. He plans to “change the online experience” because of the fact that internet has gone from dial up to fiber. This one single changed has allowed Netflix to work faster and be able to stream more videos, thus making the online experience much more enjoyable, and Reed Hastings point of taking advantage of the internet as a success.

Reed Hastings has also said that he would like to take the mobile market and go global with Netflix as his second vision. According to Forbes.com, “there are 5 billion people on mobile.” With the 5 billion projected people on mobile as Netflix’s audience, Reed Hastings says, “His dream is to see Netflix rolled out across the globe, in the process of becoming the world’s best entertainment distribution platform.” With both of these projected goals, Mr. Hastings wants to basically take over the world with internet and mobile domination of entertainment.

Media Mission Statements

What are some interesting mission statements or values statements of some of the companies in your industry? What do their statements reveal about them?

A mission statement is a formal document that states the objectives of a company or organization. Within the media industry many companies have interesting mission statements.

Walt Disney’s mission statement is, “to be one of the world’s leading producers and providers of entertainment and information.” Walt Disney has definitely held up to their reputation of wanting to be the “world’s largest producers of entertainment and information.” Whenever I think of movies I think of Disney. Just last night I watched Tangled, a new Disney animation.

The McGraw-Hill Companies also in the media industry has an interesting mission statement. “We are dedicated to creating a workplace that respects and values people from diverse backgrounds and enables all employees to do their best work. It is an inclusive environment where the unique combination of talents, experiences, and perspectives of each employee makes our business success possible. Respecting the individual means ensuring that the workplace is free of discrimination and harassment. Our commitment to equal employment and diversity is a global one as we serve customers and employ people around the world. We see it as a business imperative that is essential to thriving in a competitive global marketplace.” I think McGraw-Hill’s mission statement is a great mission statement, because it doesn’t care if they are number one in the industry, they care more about their employees.

Netflix representing the movie portion of the media industry has a short and sweet mission statement. “Our appeal and success are built on providing the most expansive selection of DVDs; an easy way to choose movies; and fast, free delivery.” I own a Netflix account and don’t know what I did before without one. It is very convenient to not have to go outside my house to get a movie that I want to watch. I can either pull it up on the instant queue, or I can order it and have it come in the mail. Netflix’s mission statement mimics Walt Disney’s. They want to be the best in their industry and believe they are.

Lastly, I will focus on the radio part of media with SIRIUS Satellite Radio. “SIRIUS is changing the way America listens to music, sports, news, and entertainment.” SIRIUS mimics that of Netflix with a short and sweet mission statement, but it also mimics that of McGraw-Hill. Although it doesn’t have to do much with its employees, it has more to do with the customers, which is where media is headed these days. Pleasing the customer is the most important for any business who want to rule the media world. SIRIUS Satellite Radio is playing it smart by coming up with a mission statement that targets consumers of their product.

Netflix, Are You Serious!?

Perhaps no other company in the media industry is receiving for attention at this moment than Netflix. 2 months ago, Netflix announced that they would be changing their price, resulting in outrage among numerous customers. Fast-forward two months and the price change has resulted in the loss of many subscribers. Just when current customers thought they couldn’t get any angrier, things got a lot worse. Netflix CEO Reed Hastings recently sent out an overnight email to the company’s 23 million subscribers, notifying them of Netflix’s plan to separate its movie services.

Hastings plans to rename the DVD business from Netflix to Qwikster. Qwikster will have its own billing system, website, and list of movies. Current customers are infuriated by this move. Stating how now they will not only have to play a lot more, but they will also have to access to different sources. Angry customers are even threatening to cancel their Netflix subscriptions, arguing that the selection of titles available for streaming is very limited compared to the DVDs.

In my opinion, things are not looking so great for Netflix’s future. Not only are their fans becoming infuriated, but there is also an increasing amount of movies and videos becoming available throughout the Internet. Netflix’s shares have already dropped 7.3% on Monday according to the Nasdaq Stock Market. Hastings says he is willing to endure through the downfall because his long-term belief is that people will become less dependable on DVDs and eventually streaming will take over and make DVDs obsolete. While Hastings remains confident and envisions a successful future, I for one would not recommend investing in Netflix for a while.

-Nayef Halloun