In class, we debated whether or not Netflix should make or buy content. Originally, I felt that it was a good idea to buy content such as movies and TV shows, however I became strongly convinced that making content proves to be more beneficial to Netflix in the long-run.
To access Netflix’s services, one must pay a monthly fee of $7.99 in order to access Netflix’s service. With this being said, why should we pay for something that we can stream for free somewhere online? Even though this may be illegal in certain cases, it still does not prevent the majority of people from doing so. Take for instance, the illegal downloading of music that has brought down the demand for the whole music industry. The majority of the people are still download music even though it is legal.
With making content, these shows become exclusive to Netflix and hence it is much harder to be streamed online. This is the kind of service that consumers are willing to pay for.
Furthermore, it is wise for Netflix to create TV shows because it makes consumers wait for upcoming episodes, which causes the consumers to inevitably pay monthly for Netflix’s service.