How Netflix has changed the global entertainment industry

Since Netflix began its global expansion in 2016, the streaming service has rewritten the global entertainment playbook – from television to cinema and, more recently, video games.

Hollywood once exported most of the world’s hit series and films. Today, thanks to Netflix’s investments in international television and film, shows like South Korea’s “Squid Game” and France’s “Lupin” have found massive audiences around the world. And Netflix’s English-language originals, such as Shonda Rhimes’ “Bridgerton,” Ryan Murphy’s “Dahmer” and Tim Burton’s “Wednesday,” have broken the streamer’s internal viewership records.

Netflix is ​​in great shape after 2023 writers’ and actors’ strikes shut down Hollywood production and other streamers were cut to stem losses. After a decline in 2022, its stock climbed in 2023 and it is making progress with its crackdown on password sharing and its ad-supported subscription level. Money-hungry rivals have started licensing their shows to Netflix again, in a move that could help make the streamer even more dominant.

Netflix’s impact on the global television industry remains undeniable, although the company now faces new questions about its audience growth potential, its ability to compete for advertising revenue, and its ability to attract younger viewers.

How Netflix Disrupted the Global TV Industry

To thrive internationally, Netflix sought both mainstream American shows like “Stranger Things” and local content that could engage viewers in specific markets (and produce blockbuster hits).

This strategy has helped the streaming service grow its customer base to over 260 million subscribers worldwide. Its momentum has also revived production in countries like Germany, Mexico and India.

More recently, it and other streamers have sought to carry network-style shows that could attract large audiences, as well as fewer, lower-budget films under new film chief Dan Lin. It is also integrated into live programming like sports and comedy.

Learn more about Netflix’s content evolution:

• Netflix is ​​abandoning its strategy of big-budget action films and big stars. Here is his new plan.
• Netflix Helped Stream Original Movies – Now It’s Stepping Back and Hollywood is Feeling the Pinch
• Leaked documents reveal what Netflix wants in new shows, from ‘Dahmer’-style true crime to its own version of ‘The Bear’
• Netflix’s “Squid Game” is part of a solid international television strategy, well ahead of its competitors.
• International TV producers describe how competition from streaming is changing their markets

Netflix shook up its leadership to reflect a changing business

After breaking every rule in Hollywood and upending everything about the entertainment industry, Netflix – since its very first subscriber loss – has broken its own rules, reversing its stance on password sharing and advertisement.

The company also reshuffled its leadership in 2023, elevating Greg Peters to co-CEO, reflecting its move toward new revenue streams, alongside Ted Sarandos as co-founder Reed Hastings became executive chairman.

Meanwhile, TV director Bela Bajaria has been named content director, and cinema will report to her.

An elite team of interdisciplinary leaders helps make Netflix’s biggest decisions. Known internally as “Lstaff” – the “L” stands for leadership – the 22-member group sits between the company’s executives and its broader executive body of vice presidents and above, called “Lstaff”. Estaff.”

Learn more about Netflix’s corporate structure:

• Netflix insiders describe its new co-CEO as “hyper-rational” and a powerful behind-the-scenes player leading key expansions in advertising, gaming and more.
• Netflix org chart: The 71 most powerful people at the streamer and who they report to
• Netflix says subscribers to its advertising plan have doubled. Meet the 19 executives leading the streamer’s aggressive push into advertising.
• Netflix Salaries Revealed: How Much Engineers, Marketers, Content Managers and Others Get Paid

Netflix continues to grow, despite layoffs

Netflix’s restructuring has not been without obstacles. The company has laid off hundreds of employees over the past two years as the broader media and entertainment industry grapples with a bear market.

Still, the company’s growth has generally made it a desirable place to work in recent years, despite some challenges its corporate culture has faced. Although hiring has slowed, the company continues to add staff to maintain its lead over other paid streamers and fuel its global expansion.

Learn more about Netflix’s business model and company culture:

• Netflix insiders describe culture shift toward ‘fear-based’ decision-making, executives at their wit’s end and belt-tightening amid layoffs and subscriber losses
• Netflix’s spending cuts fuel fears that its creative golden age is over
• Netflix exec reveals sporting ambitions and next live sporting events as golf series ‘Full Swing’ debuts
• Netflix is ​​still hiring for hundreds of positions across its game studio, engineering teams, and more. Salary data shows how much the company offered for 180 different jobs.

Netflix launches into advertising and games

Netflix faces more competition for viewers than ever from traditional media companies like Disney and Warner Bros. Discovery and tech players Apple, Amazon and YouTube, most of which are more advanced in selling ads and offering live sports programming.

Competition is pushing the streaming giant to continue to evolve. Netflix introduced a cheaper, ad-supported tier to combat slowing subscriber growth. The company also creates video games and sells products and experiences related to series like “Squid Game” and “Bridgerton.”

Some creators worried that Netflix was taking fewer programming risks to please advertisers, while the service has been slow to meet the scale advertisers demand.

As with movies and TV shows, Netflix is ​​slowly ramping up advertising and gaming. This involves ordering and issuing licenses for mobile games, some of which are based on existing franchises like “Stranger Things” and on companies acquired to revive the activity.

Learn more about Netflix’s advertising and gaming ambitions:

• Netflix has launched its ad-supported tier – here’s everything we know about how the streaming giant offers advertisers
• Netflix shares jumped after the company’s first television presentation. Meet the 19 executives who are leading its advertising campaign
• Why Netflix is ​​putting cars like the Chevrolet Bolt on its shows and what the streamer’s deal with GM means for its growing ad business
• How Netflix executives, including its new co-CEO, are thinking about a FAST streaming service that could boost its advertising business
• Netflix is ​​doubling down on its gaming efforts, with dozens of new hires and a dedicated studio, as it pursues a younger audience and fights to make up for subscriber losses.

Elaine Low contributed to an earlier version of this article.