“Netflix and Chill”- How Netflix Leveraged Modern Marketing Strategies to Become the Best
Netflix is one of the most popular brands these days. It has become an integral part of our life. On average, around 140 million hours of content is streamed on Netflix daily. So, how did Netflix get here?
The idea of online streaming cropped up after an incident when the CEO of Netflix once had to pay $40 as a late fee while returning a DVD. Afterwards, he made it his mission to build a platform where people could have access to available video content, leading to the creation of Netflix. In the initial stages, Netflix only provided a DVD rental service.
But after some competition with DVD rental giants like Blockbuster, Netflix finally decided to switch to the online streaming service space. Netflix's worth kept climbing and skyrocketed by 4,060% from $24 million in 2000 to $203 billion today. Now, Netflix has more than 221 million subscribers in over 190 nations all over the world.
Exploring the marketing strategies of Netflix is the absolute guide for every brand that intends to set a bar with modern marketing. So let’s check it out!
Netflix is an international brand that delivers its content to a varied group of people from different socio-economic-cultural backgrounds. Netflix has a broad amount of original and licensed video content targeting different age groups for their wide audience base.
The brand has provided its services competitively and released a few lower-priced plans to get into middle and lower middle-class client segments. In changing economies, where customers are more price-sensitive than the advanced economies, they introduced a smaller plan where the users are allowed to access content only on mobile devices.
Netflix is mainly focusing on the 18-45 age group which is the largest group of Netflix viewers. In 2020 alone, the brand has gained around 10 million net subscribers. Its total memberships crossed 195 million in the third quarter of 2020 and has also accomplished a strong rush across the elderly segments.
One of the main focuses of Netflix's growth strategy is their original content. The brand has regularly expanded its collection of original movies and shows. Netflix is also keen to expand their catalogue in 2022 as its competitive vision has continued to strengthen. Original content has been the company’s major differentiating factor from other online streaming platforms.
Netflix’s competitors have begun investing in original content too. However, the collection of Netflix is much larger in comparison to the others. Nothing engages customers around the world like original video content. As Netflix’s treasure trove flourishes, so does its business.
Netflix possessed a considerable debt over time but with a thriving impact, the profits have increased and so have its operating margins. Original content is a crucial source of competitive edge for the online streaming platform. During the production of original content, quality has been a firm focus since customer satisfaction is key.
Improved Mobile-First Experience
Netflix had identified early on that in certain corners of the world - primarily in emerging and growing economies - a large portion of people access the internet via their smartphones. From social platforms to online shopping, and entertainment, access to online content through mobile devices has proven essential.
Netflix adapted its focus towards mobile experiences. From signups to credentials, UI to streaming capability for cellular networks, the brand grew its significance on the mobile Netflix experience. The brand also focused on flourishing its relationship with smartphone brands, mobile and TV dealers as well as internet service providers. With the number of smartphone users around the globe growing, opportunities for streaming brands are expanding.
Netflix’s other leading growth driver is technological innovation. The brand has modified its platform using technological innovation to provide a top-notch customer experience. User experience is not only affected by content quality but also by the entire quality of the platform, such as streaming quality, searches and suggestions. While analysts understand that most of the technological innovation at Netflix isn't new, Netflix has gone on to invest in research and improvement every year.
From its dynamic search algorithms and recommendation systems, to the cloud technology that allows the brand to stream its services across the globe, Netflix holds a heavy focus on research and development to improve its attractiveness. Netflix may have already collected a considerable advantage based on technological innovation, there is always room for improvement. Netflix manages that the website complies with different individual preferences which separate the Netflix experience from others.
Netflix continues to evolve, delivering more customised experiences made possible through the use of machine learning, artificial intelligence and the creativity of the team.
Currently, Netflix leverages AWS cloud computing for its computing and storage-related requirements and delivers its content through Open Connect; a network of data centres across the globe with a clear focus on bringing Netflix closer to its users globally.
Netflix has grown at an astounding pace in the past few years. It’s streaming service boasted 221.8 million subscribers last year, after booming during COVID-19 lockdowns.
Netflix’s subscriber base is growing, providing the company with huge profits in the coming years. Their message is precise; Netflix will invest where it matters most – technology, content and quality.