Economics Behind- The Netflix Effect.

Imagine this, it’s a lazy Sunday evening and you just had a great dinner. Today, you have planned to watch the new Netflix series which you had postponed for quite some time. You also know that Monday is a holiday so, you decide to stay up all night and binge watch the show. By the time you have finished it, you got really curious about certain props that were used in the series and decided to buy some of that on Amazon. Well this is basically the Netflix effect. Ever thought, how does this affect our day to day consumption?

People have literally created the term “Netflix and Chill” due to the hype.

All over the world, Netflix subscribers grow by almost 10% every year. It is true that Netflix has an effect on our daily lives, believe it or not. The binge-watching capability of Netflix might be leading to shorter attention spans. Gone are the days when we would wait a week for new content; we watch whole seasons in a day and finish TV series in a few weeks. Along with smartphones, which are almost always at our disposal, Netflix has created a means for constant entertainment. If we are bored, we need not think for more than a few moments before we open up the laptop and begin a “Netflix marathon”.

Chess was originally created in India in the 19th Century.

Let’s take the example of The Queen’s Gambit. I am sure most of us reading this has somehow heard or even watched the series. It’s a beautiful fictional story revolving around chess. I personally loved it and in fact I stayed up all night to binge-watching it. But, the interesting thing to notice here is the aftermath of the release of the series. Just after the series was launched there was a huge spike in the demand for Chess sets. At the same time there were spikes in demand for chess books too. There were even spikes in number of registrations in Online chess websites. To put this into numerical perspectives, after the release of The Queen’s Gambit, the demand for Chess sets rose by over 150% and chess books by more than 600%. There was also the increase in registration numbers in the online websites by over 50%. At the same time, we even saw huge increase in the viewership of Chess streamers and YouTube Videos. Experts like Botezlive, GMHikaru, GothamChess and other chess streamers have seen huge rise in viewership in their Twitch and YouTube Channels.

Viswanathan Anand, the former world chess champion and the first grandmaster from India even said, “The potential for chess is huge; the future is what we make of it. I would like to see the younger population participate in the game more and represent India in world championships. The current spurt of interest might be the precursor to the change. Preference for the game has grown by leaps and bounds compared to when I was starting out. Chess is now being considered as a sport and has a huge fan base. The show has had a massive impact; people who have never spoken about chess ask questions now.”

This is an awesome TED talk on Netflix and its effects. 🙂

But, there always lies one question which need to be addressed. Is the Netflix effect sustainable? In my opinion, with the current mind-set among the people to move towards online platforms for streaming, it is sustainable. At the same time, Netflix would need to see that this doesn’t become like the normal television shows where advertisements have swarmed in like bees. But, with shows like these streaming, I believe that Netflix will play a huge role in altering our consumption pattern in the near future.

If you enjoyed reading this post, a like would be awesome. Comment below your thoughts on the Netflix effect and let me know in the comments section, if you ever bought anything just because you saw it in a Netflix series. If you are new here, do drop a follow. Also, a very happy new year to everyone. Do check out my previous post. You can now follow me on twitter as well. Stay tuned for more posts by The Antique Economist. This post is the 4th article of my new series: Economics Behind. This series will talk about various things we may or may not notice and find an economic connection to it. Hope y’all like it.

60 Comments

  1. I am not the biggest Netflix fan, despite having had it for many years, bought whilst the kids were away at UNI, but I must admit during the lockdown its been a blessing and I have watched lots of the series now. My thought is always “what did we do before there was a Netflix”, followed by “how much do all these various productions cost?”

    Liked by 2 people

  2. Really interesting post. One of the shoes we watch as a family is really wholesome, middle of the road drama, but it’s noticeable that 5 seasons in lots of people are wearing North Face coats and drinking loads of McCafe coffee! Even our kids have noticed!

    Liked by 1 person

  3. An interesting article, Arpan. I enjoyed reading it. Media affects us one way or the other. I liked that this time the consumers were inclined to buy chess, and were interested in learning the game. Thanks for writing a much-needed article.

    Liked by 1 person

  4. Very interesting article. I heard about the Queen’s Gambit’s influence from a couple of sources and it’s amazing. Personally, I have never bought anything that I’ve seen on a Netflix series (only because I don’t have money). But I can believe that people are influenced to buy stuff only because they saw it on Netflix and thought it was cool.

    All the best, Michelle (michellesclutterbox.com)

    Liked by 1 person

  5. This was interesting and insightful! I agree with what you said about gone were the days when we would wait for a week for the next episodes. Netflix has really changed the game for me. Now, artists and celebrities have dominated here too! But sadly some people are getting too obsessed with netflix too that they end up unproductive and self deprived haha. A balance is what we need! Thank you so much for this.

    http://www.lifebeginsattwenty.com

    Liked by 2 people

  6. Loved this post! Netflix has definitely woven its way into everyone’s consciousness and it’s more of a verb when describing what you did at the weekend! 😂 I always end up watching a series because other people have been talking about it! But I also like to discover new series which many people have overlooked. Xo

    Liked by 1 person

  7. I don’t have a Netflix account, but it’s not that new a phenomenon. Reese’s pieces in ET. Puffy vests in Back to the Future. 80s movies and TV shows were full of interwoven ads and partnerships.

    Marvel movies on Disney+ even have a disclaimer, acknowledging the ads in the movies. When you see the credits and realize the number of employees it takes to create these movies, it makes sense.

    Liked by 1 person

  8. This is fascinating to discover – I’d slightly noticed myself that Netflix had changed how we interact with content, and has massively increased the pressure on cinemas or domestic broadcasters to keep up, I wouldn’t have imagined quite how successful it could be. Perhaps boredom and picking up a new lockdown hobby played a part in promoting chess? Thanks for sharing!

    Liked by 1 person

  9. Very interesting! I love Netflix but I also like adverts because it means I go and clean etc in the breaks, with Netflix I just have to pause every 15 mins…I know I have amazing willpower 😂 x

    Liked by 1 person

  10. Such an interesting read, I hadn’t thought about it this way before but I do think it makes absolute sense to be so influenced by that which we watch because we can connect with the character and want to be more like them, confident, powerful and successful. Thanks for sharing.

    Liked by 2 people

  11. It is interesting to read just how much Netflix can influence our lives. Like you, I binged watched Queen’s Gambit. While I didn’t seek out chess sets and books, I did find myself playing chess after watching the show later in the week. Now I’m thinking about how others show have influenced my actions. Thank you for sharing. 😊

    Liked by 2 people

  12. You’re so right and it’s so interesting! I certainly made a Bridgerton cocktail and you only have to look at how this filters into Tik Tok! The Queen’s Gambit was awesome and the sales of chessboards soared! I also think Netflix is so influential because I’ve watched so many series that I wouldn’t normally have watched because it’s been recommended so much! Amy at amymarshment.com x

    Liked by 1 person

  13. Really interesting post and something I really hadn’t thought of. I certainly hadn’t considered how Netflix could contribute to consumers and their purchases but you have made some great points. Thanks for sharing!

    Liked by 1 person

  14. Amazing post! Definitely we are going to see more of this, but wondering will it be on the same scale as the Queens Gambit where it rose chess in popularity, or will we see more things getting popular by demand but in smaller quantities? ( more things at once but never reaching the boost chess received)

    Liked by 1 person

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