Netflix, Inc. (NASDAQ:NFLX) has been working to bring unique offerings to its service lately in hopes of attracting more users. Between deals to increase the amount of streaming content offered by the service and original programming targeted at its most-watched genres, the company knows that it has to keep improving its offerings if it hopes to keep subscribers coming in.
This is especially important as Amazon.com, Inc. (NASDAQ:AMZN) continues improving its Amazon Prime offerings in hopes of unseating the reigning champion. The original programming that Netflix offers is expensive, while Amazon’s originals are much lower-budget affairs. For Netflix, Inc. (NASDAQ:NFLX) to continue spending more money without the additional income sources that Amazon.com, Inc. (NASDAQ:AMZN) has it needs to provide not only must-see programming but also a better user experience.
Enter Max.
So what is Max?
Currently available only on PlayStation 3 consoles, Max is a new recommendation guide that’s one part Siri and one part “20 Questions.” Instead of relying on the service’s “oddly specific” categories to find new movies, viewers can click the “Play Max” button to receive movie recommendations based on the answers they give to a few questions.
The goal is to make the process of selecting a movie more enjoyable, providing users with a bit of personalized interactive fun instead of impersonal category listings. Similar to the service’s recent Facebook Inc (NASDAQ:FB) integration, Max is just another way to try and convince users that there’s more value to Netflix than just the movies and TV shows that they watch.
While Max is currently only available on PlayStation 3 consoles, plans are already in place to roll the feature out onto other devices such as the iPad. Netflix, Inc. (NASDAQ:NFLX) knows that some users will never try the feature, but as it is rolled out to new devices you can expect significant in-platform advertising for it similar to the large attention-grabbing ads that the company uses when launching new original programming.
The big picture
Max is just one part of the bigger picture for Netflix. With the success of original programming such as “House of Cards” and the revival of “Arrested Development,” the company is dedicated to providing options that its competitors can’t. As the company’s business model shifts increasingly toward digital streaming, opportunities to offer exclusive content and a unique user experience will increase as well.
Netflix, Inc. (NASDAQ:NFLX) has signed new deals with companies such as The Walt Disney Company (NYSE:DIS) and Dreamworks Animation Skg Inc (NASDAQ:DWA), increasing the amount of content that the service can offer for digital streaming and developing original programming based on already-popular characters. The Dreamworks Animation Skg Inc (NASDAQ:DWA) deal, said to be the largest in Netflix’s history, is especially important to the service since it recently lost several popular shows for children when Viacom, Inc. (NASDAQ:VIAB) opted to not renew its contract with the service and took shows like “Dora the Explorer” and “SpongeBob Squarepants” to Amazon.com, Inc. (NASDAQ:AMZN) instead.
Increasing competition
Part of the reason that initiatives like Max are so important for Netflix, Inc. (NASDAQ:NFLX) is that the streaming video space is getting more crowded. In addition to Amazon.com, Inc. (NASDAQ:AMZN) Prime and the Coinstar/Verizon collaboration for Redbox Instant, larger companies such as Microsoft Corporation (NASDAQ:MSFT) and Sony Corporation (ADR) (NYSE:SNE) are looking to take advantage of the streaming space as well.
Microsoft Corporation (NASDAQ:MSFT) plans to offer streaming digital content and original programming in its bid to capture the living room. In addition to a Halo series produced by Stephen Spielberg, rumors have been circling since April that the company may seek to resurrect NBC’s superhero drama “Heroes” in an attempt to mimic Netflix’s success with the resurrection of “Arrested Development.” This wouldn’t be Microsoft Corporation (NASDAQ:MSFT)’s first foray into original content, either; the company offered a few exclusives on MSN during the 90’s and developed a program starring Craig Robinson as part of a deal with “The Office” producer Reveille. None of its previous efforts were major hits, however, so it remains to be seen whether Microsoft can succeed with its latest content ventures.
Sony Corporation (ADR) (NYSE:SNE) has been a bit more coy about its plans to bring original content to the PlayStation 4, though the company did announce that it was planning to offer new original content from Sony Pictures Entertainment through the console. The content will supposedly be “tailored for gamers,” though this could range from game-inspired projects similar to Sony Corporation (ADR) (NYSE:SNE) Pictures’ Final Fantasy VII: Advent Children to gaming-themed talk shows and competitions. Provided that it keeps this focus on gaming, it’s unlikely that Sony Corporation (ADR) (NYSE:SNE)’s programming will overlap significantly with that which is offered by Netflix, Inc. (NASDAQ:NFLX).
Conclusion
Netflix provides a service that has to constantly evolve in order to draw in new subscriptions. With some of its original programming ventures costing $100 million or more to produce, the company has to rely on more than just big-name actors and producers to lure those subscribers with. Netflix, Inc. (NASDAQ:NFLX) Max has the potential to make the service more fun to use, allowing users to enjoy Netflix itself and not just the entertainment options that it provides. If the new feature succeeds, the company could receive a boost as more users start discovering some of the hidden gems buried in the Netflix, Inc. (NASDAQ:NFLX) streaming library.
John Casteele owns shares of Microsoft Corporation (NASDAQ:MSFT). The Motley Fool recommends Amazon.com and Netflix. The Motley Fool owns shares of Amazon.com, Inc. (NASDAQ:AMZN), Microsoft, and Netflix, Inc. (NASDAQ:NFLX).
The article Will Netflix Max out its User Experience? originally appeared on Fool.com.
John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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