Tomorrow marks the arrival of the second season of House of Cards, Netflix’s outstanding political drama about the cold-blooded scheming of Congressman Frank Underwood (Kevin Spacey) and his wife Claire (Robin Wright). Although this brilliant Shakespearean tale is noteworthy in itself, the manner in which House of Cards was designed and distributed are what make it truly revolutionary.
Here’s what has the entire pay-TV industry shaking in its boots (and not coincidentally, what makes House of Cards amazing):
1. The When, the Where, and the How
People are demanding about the manner of their media consumption, and Netflix is ahead of the curve on this front, letting people watch content anywhere and anytime via laptops, smartphones, and tablets. Networks are struggling to keep up: Usage of their viewing apps is low, and audience schedules for watching broadcast TV are scattered. And even when networks do connect with audiences, viewers are increasingly resentful of the old-school distribution model of one episode per week. House of Cards took a gamble by releasing the entire series at once, betting on the growing trend of “binge-watching” to make the show a success. It paid off, and the show quickly became one of the most-streamed programs in history. The pay-TV model hasn’t come up with an answer (yet).
2. You Watch Netflix, Netflix Watches You
With around 44 million subscribers, Netflix has a formidable data farm at its disposal, and is using our viewing habits to shape its programming. If you watch a movie in its entirety, they make a note; if you pause it during a dull scene, they make a note.
While data in the form of test screenings and focus groups is nothing new to Hollywood, the extent to which it influences House of Cards is mind-boggling. The show was commissioned based on data that showed that subscribers who liked the original BBC production also love Kevin Spacey and David Fincher movies. Even crazier, its scripts reflect our watching patterns: When Frank breaks the fourth wall and gives the audience a glimpse into his devious mind, it’s because user data indicated the scene was getting too slow or too long.
In essence, Netflix has perfected the science of entertainment addiction, and is using its limitless supply of information to engineer irresistible content. Good luck, Nielsen!
3. The Circle of Recommendations
Beyond creating hit content, Netflix’s data strategy is also the bedrock of retaining existing users and attracting new ones. According to the service, between 75% and 80% of videos watched by Netflix users come from its recommendation engine which, of course, runs on the Big Data mentioned above. By making recommendations with such accuracy, Netflix is keeping its users happy, creating enthusiastic brand evangelists (recommenders, if you will) and reducing the need for a hefty marketing budget. (Added bonus: the more users watch, the more data Netflix collects).
These three factors have taken Netflix from being an industry disruptor to an industry leader, and as its tactics get the attention of its bigger, slower competitors, it’s very likely you will start to see more and more House of Cards-like programming popping up on your screen.
That is, of course, unless season two is terrible.
Article references:
http://www.newyorker.com/online/blogs/culture/2014/01/the-new-disruptors-at-sundance.html
http://www.businessinsider.com/netflix-house-of-cards-gamble-2013-1
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