Netflix's (NFLX) Content Strategy is Taking Hold in A Big Way
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Netflix (Nasdaq: NFLX) shares are in positive territory Thursday amid a new report from research firm Nielsen.
According to data, Netflix members increased using the streaming service for TV or TV-like programming by 8 percent compared with the same period in 2011.
Data shows 19 percent of users prefer to watch TV shows, from 11 percent in the same period last year.
On other media, Nielsen said there was a decline: users preferring to watch movies fell 6 points to 47 percent, while those enjoying movies and TV equally slipped just 1 point to 35 percent.
The firm stated: "[t]he increase comes in the wake of Netflix not just inking partnerships to re-air programming, but also jumping feet first into production themselves, rolling out original content—like the 8 episode "Lillehammer" starring former Soprano sidekick Steven Van Zandt or the upcoming "Orange is the New Black," which is the first project from "Weeds" showrunner Jenji Kohan following the Showtime program’s run. The company has also made headlines for resurrecting beloved sitcom "Arrested Development.""
This means Netflix's venture into creating its own content is working and might account for more viewing. With movies, viewers are done after, say, one to two hours. With TV, you can sit and watch an entire season from start to finish, amounting to several hours of view time.
The shift is also in accord with comments from CEO Reed Hastings last week.
Shares of Netflix are on the rise, up 1.3 percent for the session.
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According to data, Netflix members increased using the streaming service for TV or TV-like programming by 8 percent compared with the same period in 2011.
Data shows 19 percent of users prefer to watch TV shows, from 11 percent in the same period last year.
On other media, Nielsen said there was a decline: users preferring to watch movies fell 6 points to 47 percent, while those enjoying movies and TV equally slipped just 1 point to 35 percent.
The firm stated: "[t]he increase comes in the wake of Netflix not just inking partnerships to re-air programming, but also jumping feet first into production themselves, rolling out original content—like the 8 episode "Lillehammer" starring former Soprano sidekick Steven Van Zandt or the upcoming "Orange is the New Black," which is the first project from "Weeds" showrunner Jenji Kohan following the Showtime program’s run. The company has also made headlines for resurrecting beloved sitcom "Arrested Development.""
This means Netflix's venture into creating its own content is working and might account for more viewing. With movies, viewers are done after, say, one to two hours. With TV, you can sit and watch an entire season from start to finish, amounting to several hours of view time.
The shift is also in accord with comments from CEO Reed Hastings last week.
Shares of Netflix are on the rise, up 1.3 percent for the session.
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