Diffusion of Innovations

 

The Diffusion of Innovations is a theory of technological advancement that can be applied to many modern methods of communication. 

To look at Netflix as an example starting in 2007, the only people to transition from DVDs to streaming would have been the small percentage called the innovators. 

The early adopters wave came in 2010 when Netflix signed a $1 billion deal to stream films from Lionsgate, Paramount, and Metro-Goldwyn-Mayer. These customers already owned a subscription, but began to see the value of streaming now that fan favorites are available.

Over the next several years, Netflix continued to sign deals with many different production and media agencies acquiring more movies and TV shows that their subscribers have access to. By 2014, Netflix had rights to Adult Swim, TNT, Starz, Sony, Star Wars, and had launched many of its own original series. With all of these developments, the early majority joined Netflix because it was the hub of streaming content.

The tipping point is the success of the Netflix originals in 2017, specifically 13 Reasons Why, Bandersnatch, Black Mirror, and Stranger Things. Today, Netflix has 2,796 orginal shows and movies, according to IMDB. By 2017, there were competitors like Hulu and HBOMax, but Netflix acquired that late majority by making shows that everybody watched only available on Netflix. I remember in 2017 when everybody was talking about these shows and very few people didn't know what we were talking about.

The laggards joined in 2020 during quarantine when there was nothing else to do so they might as well have access to entertainment. By 2021, Netflix hit 209 million subscribers, up by 13% since 2020.