MARKETING STRATEGIES OF NETFLIX

INTRODUCTION

•  NETFLIX is an Over-the-top (OTT) video service provider which has subscription-based streaming service as its primary business offering a pool of films and TV programs majority of which are in-house produced.

• NETFLIX is Known as the World’s leading provider of on demand video, movie streaming, and TV series.

BACKGROUND

• Founded on August 29 in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California
• Initially the company started with rental stores and after significant growth, Netflix decided to switch to a subscriber-based model.
• In 2000, Netflix introduced a personalized movie recommendation system. In this system, a user-based rating helps to accurately predict choices for Netflix members.
• By 2005, the number of Netflix subscribers rose to 4.2 million.
• On October 1, 2006, Netflix offered a $1,000,000 prize to the first developer of a video-recommendation algorithm that could beat its existing algorithm Cinematch, at predicting customer ratings by more than 10%.
• By 2007 the company decided to move away from its original core business model of DVDs by introducing video on demand via the internet. As a part of the internet streaming strategy, they decided to stream their content on Xbox 360, Blu-Ray disc players and TV set-top boxes. The ventures also partnered with these companies to online streaming their content and later they received many awards.
• In 2013, Netflix won three Primetime Emmy Awards for its series “House of Cards.
• By 2014, Netflix made itself available into 6 countries in Europe and won 7 creative Emmy Awards for “House of Cards” and “Orange Is the New Black”.
• With blooming streaming services, Netflix gathered over 50 million members globally.
• By 2016, Netflix was accessible worldwide, and the company has continued to create more original content while pressing to grow its membership. From this point, Netflix was unstoppable and today it has a worldwide presence in the video-on-demand industry.
• It has its presence in more than 190 countries with over 83 million subscribers.

 TAGLINE – “See What’s Next”

MISSION STATEMENT –

“We promise our customers stellar service, our suppliers a valuable partner, our investors the prospects of sustained profitable growth, and our employees the allure of huge impact.”

VISION STATEMENT –

“Becoming the best global entertainment distribution service. Licensing entertainment content around the world, creating markets that are accessible to filmmakers and helping content creators around the world to find a global audience.”

MARKETING STRATEGIES

NETFLIX business Model have many layers and innovations, which is not tasted by any other company before. Few of the points mentioned below, are the reasons for the success of this successful OTT platform.

      1)Original Content & Content Variation 

• “Content is the king”, this phrase is proved by the company in all over the world. Providing Original Content as well as showcasing other’s content is what makes it different and unique.
• NETFLIX is involved in all kinds of content whether Movies, Web Series, Documentaries, Animated Movies, Kids Stories, Stand Comedy and Drama. So, they have shows for everyone irrespective of age and culture, which they are using as their USP.

      2)Understanding Geographical Variation and Country Culture

• NETFLIX have done a huge research on the likings and disliking of their audience and “who watch what” mantra.
• Based on that depending on country they launch different shows considering geographical and language barrier in mind.

      3) Pre-Releasing small movie clip 

• Showing a glimpse and short clip of movie can increase the excitement of subscribed viewers.
• And for Unsubscribed User, they started releasing short video clips on particular favourite characters’ moves, intimacy scenes or super powers, which force the user to take subscription.
• So, this “Curiosity” is what help them to generate leads and do conversions.

      4) Hiring YouTube Influencers 

• Hiring YouTube influencers for not promoting any movie in their channel but only for promoting their brand name on their platform.
• Releasing a short clip with them will lead to first brand name on audience turn in web entertainment industry.
• Focussing on “Brand Name Awareness” is a unique selling point whether by their own website or YouTube channel or on their platform.

      5) Key Partners and Alliances

• Netflix has built more than 35+ partners across the world. They have partnered with different types of genres for subscribers to select from and enjoy watching.
• Partnered with Smart TV companies like LG, Sony, Samsung, Xiaomi and other players in the market.
• Partnered with Apple, Android and Microsoft platforms for the purpose of converting the business leads from mail-in-system to streaming.
• Built alliances with telecom networks like Airtel, Reliance Jio and Vodafone.

       6) Value Addition

• With 24*7 streaming service, users can enjoy shows and movies in high-definition quality from anywhere whether they are at home or are traveling.
• New signups can avail a 30-day free trial and have the option of cancelling subscriptions anytime.
• Netflix “user profiles” gives leverage for users to personalize their user account and preferences. The User profiles allow the “admin-user” to modify, allow or ever restrict certain users.

      7) Using Digital Marketing Model :-

       a) Content Personalization

• The company knows consumers’ interests and tailors the content it offers to each subscriber based on the data it has about them.
• Netflix knows the types of shows a subscriber likes to watch based on the audience member’s viewing habits. It uses this information to market similar content to the subscriber later.
• Basically, “NETFLIX” personalize everything.

        b) Website Development

• They designed their website with a user-friendly interface which allows customers to rate TV shows and movies, which then goes through Netflix’s algorithm to recommend more content they might enjoy.
• They used onsite optimization for the website, they have optimized each and every page for enhanced customer experience.

        c) E-Mail Marketing

• Netflix uses Email Marketing techniques as a part of their digital marketing strategy and as a key component of customer onboarding and nurturing.
• New Netflix customers receives a series of emails that make content recommendations and encourage new users to explore the platform.
• Netflix marketers invest hours in building creative email marketing campaigns designed to engage and delight recipients.

       d) Search Engine Optimization

• Netflix makes use of search engine optimization services for the sake of improving organic research and establishing their brand presence.
• They adopted both on-page and off-page SEO strategies.
• They optimized their content with potential keywords that show up high in search results. They also tapped the strategy of International SEO to gain organic leads from the worldwide stage.

       e) Social Media Optimization –

• Social Media platforms have become an integral part of the digital marketing strategy.
• If we want to connect with our audience in real-time, then it is the best platform to establish your brand image.
• They learned from controversies and generated leads.
• Facebook is having approx. 61 million followers.
• Instagram carries 19 million subscribers.
• Twitter is having approx. 6.8 million followers and they made it a MEME account moreover.

So, NETFLIX is using an excellent use of all social Media platforms and Digital Marketing Strategy.

• COLOR STRATEGY –

• Colour psychology plays a very important role in branding and marketing because with the help the this, a single brand can get into the minds of the consumers and make its brand prominent in their head.
• So, NETFLIX has used only two colors in their logo as well as in their user interface.
• They tried to use “RED” and “BLACK”.
• “Why RED?” – It is considered as primary colour which is having maximum wavelength, which means it basically covers the distance in scientific terms whereas in terms of psychology it represents power and security, speed, courage, excitement.
• “Why BLACK?” – It represents sophisticated, luxurious, Elegance, glamor, wealth and heavy too.
• So, NETFLIX have used black to symbolise sophisticated, glamorous, elegant and they have used Logo in Red to symbolize the speed, excitement. So, the combination of both represents luxurious and powerful brand which can cover a lot of distance to blew people’s mind with their content keeping the excitement intact.

So, NETFLIX have definitely played with colour psychology as their marketing strategy.

SWOT ANALYSIS

COMPETITOR ANALYSIS

FUTURE OF NETFLIX

• Possibly NETFLIX subscribers will keep on increasing if they persistently making and showcasing good content on their platform and definitely can become the no. 1 OTT platform with no competitors around as they have a USP of making original content also.
• Their annual revenue and turn over will definitely increase and can become the highest successful business models using digital marketing model.
• After 5g, demand of this will increase the maximum considering resolution.
• It is definitely going to be a trendsetter for many business Model.
• It can change the face of cinemas later on.
• Hypothetically, If Netflix has 500 million subscribers in 10 years paying an average of $14 per month, the company’s annual revenue would be roughly $84 billion.

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