Post #6 Diffusion of Innovations

   Diffusion of Innovation is a theory that shows how businesses grow. The graph shows the stages of development. This theory can be used to explain the success of many corporations including Netflix.

 The innovators of Netflix were the co-funders, Reed Hastings and Marc Randolph. They were the
first investors in the company as they invested 2.5 million dollars to start the DVD renting service. 

     One of the reasons that Netflix was so successful was because of its new model of video renting. People like the idea of having videos mailed to them and no late fees. This means that people don't have to leave their homes and have access to all the movies available. Those who joined at this time were the early adopters. 

    The thing that brought the most growth was the subscription model for their business model they added in 1999. As users had to pay for a subscription they were more likely to return to get another movie. This got people excited to be able to watch as many movies as they could in a month. They felt they were saving money as they were not paying for each movie individually. 

    Later Netflix would become one of the first streaming services. Now people can play movies immediately on their devices. This would get more people excited about the service as they no longer had to wait for the movie to be delivered. This pushed Netflix into the early majority phase. 

    Netflix worked slowly to add to its online library. In 2008 Netflix made a deal with Starz to add content to the platform. 2011, the first Netflix original show, House of Cards, was released. The success of this show would lead to only shows such as Orange in the New Black and Stranger Things Creating content that was only available through Netflix made it stand out making others want to join the service. Those are the people that were late adopters. 

    Some people don’t have Netflix and that never will. Factors like income and the amount of free time affect this service's usefulness. People may not have access to the internet or a device to use the service. With all the new streaming platforms Netflix is no longer the only option. One of the biggest reasons that people don’t like streaming services is that they don’t get to own the media that they watch. These platforms can remove items without warning, which is why some people want to buy hard copies so they will always have access to their favorite movies and shows.  
    Netflix has flourished as they have changed how we consume media and it is still growing. The Americans who are now joining the service are in the lagging part of the diffusion of innovations theory. Most people in America have watched Netflix or have an account. These numbers are growing as Netflix tries to expand worldwide.

 Diffusion of Innovation is a theory that shows how businesses grow. The graph shows the stages of development. This theory can be used to explain the success of many corporations including Netflix.