This was an absolutely brilliant move by Netflix. From the day they began their streaming service they had a substantial library of content for pre-k, kids, teens and tweens. When they began producing their own, they jumped in on these markets too. It was a unique and very effective selling point at the time; for less than the cost of an HBO subscription everyone in the family could choose from a very substantial, high quality library anytime and anywhere, and they also had shows like Stranger Things that appeals to the whole family. They quickly began producing their own content for every age group once House Of Cards became a success.
HBO is still clambering to catch up, and it’s why the cut a deal with Henson for a big portion of their library + new shows. Now that Disney is launching their own service, HBO, etc. have had a lot to worry about, but since AT&T bought them, they have a mandate to build out their content from their CEO:
“I want more hours of engagement. Why are more hours of engagement important?” he continued. “Because you get more data and information about a customer that then allows you to do things like monetize through alternate models of advertising as well as subscriptions, which I think is very important to play in tomorrow’s world.”
Personally, I’m glad Apple is focused on privacy.