Answer to Question #254010 in Management for Dingaan

Question

Classify the service that Netflix delivers and provide two reasons for your classification

Answer 1

Discussion

Netflix is a subscription-based streaming service that allows people to watch TV shows and movies without commercials on an internet-connected device. People can also download TV shows and movies to their iOS, Android, or Windows 10 device and watch without an internet connection.

Netflix sets maturity ratings by the frequency and impact of mature content in a title, such as the amount of violence, sex, adult language, nudity, or substance use that may be present. Netflix also provides details on the mature content found within a TV show or movie, if applicable. Netflix has traditionally used its own age-rating system for films and television programmes featured on the platform. Moving forward, however, British Board of Film Classification (BBFC) ratings including U, PG, 12/12A, 15 or 18 will feature.

Traditional television viewing has halved among 16 to 24-year-olds since 2010, Ofcom data suggested. Daily viewing of streaming services among all age groups also increased by seven minutes between 2018 and 2019, taking the total to 26 minutes. For online video streaming website, YouTube, numbers also continue to rise. Netflix uses TV and movie ratings such as; ALL (Recommended for all audiences), 18+ (Recommended for ages 18 and up). In addition to the rating, there are also details about the content of the title that determined the rating (for example: sex, language, drugs, nudity). Profiles with a set maturity level will only show titles that fit the selected maturity rating level. One can also block specific shows and movies from individual profiles.

It is important for Netflix to classify their services like discussed above for reasons like; despite the increased use of streaming services, youngsters across the world are growing concerned over the content they are exposed to and they want greater insights to help them choose, it’s inspiring to see young people determined to make conscious and thoughtful decisions. It’s a good thing for young people to be empowered and confident in their film and TV choices. Also, the research shows that 95% of teens want “consistent age ratings” they recognize from the cinema or DVD to be applied to content accessed via streaming services. Concerningly, 46% of teenagers say they have felt uncomfortable or anxious due to content they viewed on streaming services, while one-third have watched “something they’d rather avoid on a weekly basis”.

Reference

Fagerjord, A., & Kueng, L. (2019). Mapping the core actors and flows in streaming video services: what Netflix can tell us about these new media networks. Journal of Media Business Studies, 16(3), 166-181.