The Effects of Digitalization on Cultural Production and Cultural Consumption
Netflix, which started to be launched in 1997, has been in our lives for 20 years. This new digital channel founded by two technology entrepreneurs; Reed Hastings and Marc Randolph with the idea of selling and renting DVDs on the internet. If we had to think about those years, the DVDs were just getting out and it was quite expensive. DVD players were only in certain people’s homes. In 2007, Netflix began offering DVD rental service by posting it on the Internet. The company started with the slogan “watch instantly” with the film-watching that started on the internet. With this service from Netflix, users no longer have to wait for a cargo to watch movies, but they can watch movies over the Internet when they wish. Thus, new-age cultural adaptation and cultural consumption habits have begun to change at this point.
Definition of digitalization according to E&Y; “Digitalization at its simplest means the conversion of analogue information into digital information. As digitisation capabilities extend, virtually every aspect of life is captured and stored in some digital form, and we move closer towards the networked interconnection of everyday objects. The impact of this is a real-time global exchange of information between multiple connected devices ( xed and mobile).” According to this; we leave our old habits to be digitized. Not only in terms of culture, but also as a business model, companies and organizations are reaching new generation consumers with digitization.
Netflix can be viewed from many platforms. Besides Windows Phone, Android and iOS apps, Smart TVs, PS4, Tablets, PCs, Apple TV or even Bluray players have a Netflix app. Due to the large number of channels to be watched and the fact that the technology is fully integrated into our lives, the purchase and sale of DVDs and rentals have fallen. As the number of viewers who have access to the Internet and actively use it, the preference rate of Netflix has also increased. Is’nt it normal that to increase the amount of time we spend on our enjoyment while digitalization started to reach every point in our lives?
If we look at the cultural influence of digitalization; cultural access facilitated worldwide. The globalization of cultural content has made the use of digital channels such as Netflix more widespread. The concept of cyber culture has entered our lives. “Digital culture (or “cyberculture”) encompasses the socio-cultural dimensions of the technologies, content and interactive processes of the Internet and mobile, wireless and converged media.” The new generation of users have been adapting very quickly to producing cyberculture content and using the produced content most efficiently.
The famous film director Quentin Tarantino, born in 1963, says about Netflix that; “I used to go and get a DVD and it would not close until the movie was over. On Netflix, you can be bored constantly and shut down after 10 minutes. It is not for me to lose this commitment.” Tarantino, who was born in the 60’s and has an important place in the film world, argues that we have moved away from our old habits by entering into the life of new digital culture areas like Netflix.
Impact of digitalization, also effects creative industries as a whole including consumers, creators, film makers, publishers. We are focusing on movies and TV series that people started to watch using Netflix. While digitalization is not at the center of our lives, as Quentin Tarantino points out, the culture of film and TV viewing was more prevalent. As technology has improved and people have been able to access all the cultures around the world using this technology, cyberculture has begun to be accepted. The old serials, movies and documentaries that Netflix buys are now one button away. Except for old movies and serials, all the new series which are going to be published or entered are being prepared for digitalization. Their content has become completely new-generation binding and impressive. For example, the Black Mirror and WestWorld TV series are made entirely of technology-based content. The interesting thing is that; Netflix even joined to the screenplay of the series and movies we watched. The concept of “Netflix and Chill” has become widespread in the world.
When we look at consumer’s perspective according to PWC report “The impact of digitalization and the Internet on the creative industries in Europe”; Consumers benefit from a rising number of TV channels, online access to nearly the entire music catalog through streaming or downloading platforms, access to global news providers across the world, insights into recommendations from friends and opinion leaders, and much more. We can say “easy access” as one of the most important reasons why consumers or viewers prefer Netflix instead of DVD. The report shows that the report shows that all of the countries have one thing in common: TV is the most frequently used platform. But the fact that Netflix can be used on many screens at the same time and the availability of internet access for new technology TVs, explains why the usage of Netflix rate is increasing.
On the other hand, traditional channels and new-age media channels have some obscurity about their consumers. In the article of “Digitalization: Do or Die!” written by Arthur D. Little mentioned; “International companies, such as Netflix or Amazon, spend millions in big data, customer experience, talent, etc. Traditional media are known for their coherency and/or credibility, but they are not yet known for their knowledge about their customers. Newspapers, Pay TV operators, FTA, etc. still have difficulty answering some questions such as: “Who reads your newspaper? Who reads your books? Who watches your channel? Who is going to the theaters?” Amazon or Netflix are closer to answering them, and this information will unleash its value sooner than later. Traditional media players (from print to TV) are redoubling their efforts and investments in acquiring these key capabilities.” It is important to analyze who the audience is from the institutional point of view. Internet-based media channels such as Netflix are more advantageous in terms of data collection. Identifying the user population and producing the contents accordingly is one of the achievements of digitization. When you combine the correct content with the right consumer, the usage rate will increase. The interest in digital channels from traditional channels is directly proportional to the satisfaction of the user. While the institution itself determines the prime-time broadcast stream on traditional TV channels, digital channels have the opportunity to watch the content the audience desires at any time. Having this freedom is quite impressive to the audience.
According to Billtrust’s article “The Digital Revolution”; “As a company, Netflix struggled with growth and a plateauing stock price. But new technology allowed them to scale the business in a big way — by going digital. They released a new online streaming service which became an instant success. Their streaming success led to funding their creative vision for original entertainment series. And now Netflix is an even bigger threat to television, cable TV and movies. Netflix serves more than 81 million subscribers worldwide, and it’s not slowing down. All because Netflix led where others did not — it embraced the digital revolution.” Perhaps everyone agrees that Netflix is a digital revolution itself. It is in very strong position against cable TV and other traditional broadcasting channels. It was inevitable for watchers to notice this revolution and keep up with it. Besides, “freedom” has become the most important concept for the new generation. It is more tempting to watch a series and a film from a media that could be freely interfitted like Netflix. Adopting technological advances and accordingly adapting to digital life is something that traditional media channels must also do to survive in this battlefield.
When we focus on cultural productions and cultural industries according to Sarah Monaci’s idea; “the introduction of digital media and the dissemination of the internet as a global communication medium have strongly questioned this traditional release model. Today, cultural industries are unlikely to be able to control content dissemination on the internet autonomously, as online distribution is becoming increasingly important. From this point of view, the entry of technological players into this media scenario is a significant novelty. These players may do not produce content directly, as media corporations do, but serve as aggregators, digital platforms for managing and distributing online content.” Netflix is both a content producer and distributor. In both cases, it can be argued that online publishing is more uncontrolled than traditional. But channels such as Netflix can apply restrictions to the audience. For example; the contents that children can watch can be completely decomposed and filtered by the user. When all these are taken into account; it would not be very accurate to say that digitalization is completely out of control.
As you can see in the table above, Netflix has more content than cable channels and other media networks. Growing rapidly in response to users’ requests, Netflix is preferred over other options. The reason of this; Netflix is presented on many different screens over the internet. Today, the rate of internet usage is very high and as the digital contents that are developed together with it are gathered under a single roof, Netflix’s rapid growth is indisputable.
As a cultural development; Netflix has just begun to change perceptions. Those who put the technology in the middle of life, except for those who fit traditions, are quite satisfied with this development. Although we do not say that cultures have changed, it is possible to say that cultural development reaches a different dimension with technology and digitalization. Cultural production and cultural consumption are realized through digitalization in the film and television industry. Netflix offers a mix of production and consumption, giving users the freedom to experience and choose content. We can foresee the future use of media tools such as Netflix with the advancement of technology and investments in digitalization in the coming years. Developing without changing culture is an important element of digitalization.
Müge Onan
References:
- Ernst&Young (2001), “The Digitization of Everything: How organizations must adapt to changing consumer behaviour”. Sec:1–20.
- PwC (2015), “The Digital Future of Creative Europe: The Impact of Digitization and the Internet on the Creative Industries in Europe”. 1–84.
- Little, D., Arthur (2014), “Digitization: Do or Die!”, EU5 Media Flow of Funds, 1–48.
- Billtrust Solutions, (2015), “The Digital Revolution:What Netflix Teaches Us About Digitization and Automotion”, 1–14.
- Berger, Roland (2015), “Cultural Content in the Online Environment: Analyzing the Value Transfer in Europe”, Paris, France. 1–199.
- Monaci, Sara (2016), “Boosting Creativity through Digital Disruption? The Role of Co-Creation Platforms in the Media Production Field”, Westminster Papers in Communication and Culture, 11(1), 49–64.
- Compendium, “Digitization and Culture”, Cultural Policies and Trends in Europe (http://www.culturalpolicies.net/web/digitisation-and-culture.php)
- Sciretta, Peter (2015), “Quentin Tarantino Refuses To Use Netflix, Still Records Movies On VHS Tapes”.(http://www.slashfilm.com/quentin- tarantino-netflix/)
