[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2013\/02\/14\/house-of-cards-artificial-markets-and-the-netflix-effect\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2013\/02\/14\/house-of-cards-artificial-markets-and-the-netflix-effect\/","headline":"House of Cards, artificial markets, and the Netflix effect","name":"House of Cards, artificial markets, and the Netflix effect","description":"Netflix has become a producer, distributor, and seller \u2013 all in one entity. Will the Netflix effect transform markets and commerce as we know it?","datePublished":"2013-02-14","dateModified":"2023-02-02","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/stefan-schmidt\/#Person","name":"Stefan Schmidt","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/stefan-schmidt\/","identifier":83,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/c3a44c000d60b555c542f4e18fc69312b266eeb98585b2f4aaa9bb16d3af0714?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c3a44c000d60b555c542f4e18fc69312b266eeb98585b2f4aaa9bb16d3af0714?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2013\/02\/Netflix-effect_FTR.jpeg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2013\/02\/Netflix-effect_FTR.jpeg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2013\/02\/14\/house-of-cards-artificial-markets-and-the-netflix-effect\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/commerce-general\/","name":"Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Commerce","http:\/\/www.wikidata.org\/entity\/Q26643"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-experience-general\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/trends-commerce\/","name":"Trends","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Fad","http:\/\/www.wikidata.org\/entity\/Q787045"]}],"wordCount":512,"keywords":["B2B Industries","B2B Subscription Commerce","E-commerce","Media","Netflix","Subscription Commerce","Subscription Models","Subscription Services"],"articleBody":"I wonder if it’s time to re-think what we traditionally call a “regional market”, thanks to what I’m dubbing “The Netflix effect”.In fact, is there such thing as a regional market any more? Currently, state borders or economic unions define regional markets, and the products and services available in these markets are exclusively defined by what that sovereign country allows to be imported into that market, regulated by the amount of duties imposed on these imports. Duties are an effective means to regulate a market and protect local industry.But what if there was no such thing as a border? What happens when there is no “tollgate” between countries or economic unions? What does it mean when everything \u00a0produced is instantly and ubiquitously available \u2014 worldwide?That’s what Netflix just did with House of Cards, a TV series about Washington, D.C.\u2019s political scene. Critics are raving, but the finer points of plot, acting, and direction are not my concern here.Rather, I’m interested in the implications for the media industry\u2014and, quite frankly, any other kind of industry, as well.      Subscription commerce: A beginner’s guide with types, benefits, examples                Subscription commerce surged during the pandemic and shows no signs of slowing down. Learn why it's booming, and everything else you need to know about this business model.      The Netflix effect: Netflix has become a producer, distributor, and seller \u2013 all in one entityThis model debuted by Netflix is a trend we see elsewhere, too, in discrete manufacturing.Manufacturers are increasingly becoming producer, distributor, and seller all in one, as the internet renders the old structure of separate manufacturing, wholesale, and retail useless.With ‘House of Cards,” Netflix has done the following:Netflix appears to care about local markets:\u00a0The series was released everywhere on the same date, meaning that there was no artificial creation of a local market in a medium (the Internet) that knows no borders.Netflix demonstrates its understanding that piracy is partially a result of the traditional way we think about markets, especially media: There’s no reason why a movie is released in Europe many months after it was released in the US, and the marketing machine runs globally anyway. It\u2019s about creating desire, which is good and will certainly drive sales \u2013 but only if that desire can be satisfied rather sooner than later.Unsatisfied desire \u2013especially in combination with consumers seeing that others already have access to what they want \u2013 creates impetus to fulfill that need, and as consumers, we’ll go to great length to do so.I don’t know if what’s happening will end up being called the Netflix effect, but I\u2019m certain that we’ll look back to this point in time in a few years and wonder how we could not have seen it before.Artificial markets are a relic of the 20th century. Today, there’s only one market \u2014 and it\u2019s a global one. That’s the market you are selling to.  Rev up revenue.Gain loyalty.Innovate NOW.\u00a0"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2013","item":"https:\/\/www.the-future-of-commerce.com\/2013\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"02","item":"https:\/\/www.the-future-of-commerce.com\/2013\/\/02\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"14","item":"https:\/\/www.the-future-of-commerce.com\/2013\/\/02\/\/14\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"House of Cards, artificial markets, and the Netflix effect","item":"https:\/\/www.the-future-of-commerce.com\/2013\/02\/14\/house-of-cards-artificial-markets-and-the-netflix-effect\/#breadcrumbitem"}]}]