I know it doesn't feel like it but The Great Netflix Debacle of Late 2011 happened a year ago around this time. The CEO went nuts and tried to break things up and confuse customers, all while jacking up the price for subscription. After the dust settled from that, we did learn that Netflix was working on some positive things. They purchased DVD.com, planned to add a bunch of original programming to their service and realized that all the people who left because "the prices were too high" decided to come back after realizing there were not greener pastures.
This week, Netflix has fended off the angry investors and customers and has proven that there is a reason they are the #1 video streaming service. The company has reached a new milestone in the world of video streaming: Netflix announced that the Watch Instantly service has over 1 billion hours of streamed content for the month of June. That is a lot of episodes of Parks and Recreation.
Netflix CEO Reed Hastings posted the good news on his Facebook page this week.
Congrats to Ted Sarandos, and his amazing content licensing team. Netflix monthly viewing exceeded 1 billion hours for the first time ever in June. When House of Cards and Arrested Development debut, we'll blow these records away. Keep going, Ted, we need even more!
Clearly the original programming was a big help but Netflix's launch in Latin America, Europe and the UK boosted the number above that 7 figure mark as well. This achievement is going to even further grow the value of the company and would likely lead to even more studios striking deals with the company because Netflix can use the number of hours streamed as leverage.
This is just proof that the world of TV and movie watching is shifting away from the scheduled format that is cable/satellite television. New media and true on-demand content consumption is the new "TV dinner" and if broadcasters and advertisers want to stay in business, perhaps it's time to change focus on where the money actually is. By the way, money was wasted in that whole Qwikster thing. I'll make one final plea: if anybody has any POP or mailers from that endeavor, please let us know!