NETFLIX MARKETING MIX
Netflix is an on-demand video streaming platform, that connects video content providers and final consumers. The success story of Netflix is an inspiring one for a lot of startups which are eyeing to become the next unicorn of the silicon valley.
Ever wondered how could a DVD rental startup, founded in the year 1997, grew to become the leading online media streaming company with a subscription base of 139+ million customers?
Quality Content
Bleeding-edge technology
User friendly platform
Intelligent use of marketing channels for promotion
These are the 5 main pillars or factors that summed up the growth story of Netflix and are very well encapsulated in the Marketing Mix of Netflix.
Let’s take a deep dive into Netflix Marketing Mix and understand how these factors helped Netflix become the world’s top media-streaming company.
Related article : Understanding the Marketing Strategy of Netflix
MARKETING MIX OF NETFLIX
PRODUCT:
Over the past 20 years, Netflix made a lot of changes in its strategy and its offerings. Let’s have a look at how Netflix transformed itself to stay abreast with changing times and customer needs. DVD sale.
INCEPTION
Founded in 1997, Netflix’s initial business model included DVD sales and rental by mail.
Netflix launched with a video library of approximately 900 titles and a 7-day maximum rental policy.
GROWTH PHASE:
Netflix soon realized that it needed to enrich its video library and this prompted the company to grow its video library to 3,100 titles by April 1999, which reached to 5,200 by January 2000.
With DVD’s dragging the attention of the audience as one of the ruling means of entertainment, Netflix apprehended the significance of technology and its widespread adoption among customers.
This prompted the company to launch its online media streaming service by 2007.
THE LEADER:
2007 was a huge year for Netflix. The company decided to permanently transform the business by launching its first streaming product – Watch Now.
Netflix launched the service with 1000+ titles which included a series of superhit videos, movies, documentaries, and films.
With all the success that the company saw in such a short span of time, there was one small chink in it’s Armour/strategy.
The licensing cost of other networks’ content like Disney, Starz Entertainment, Lions Gate Entertainment, MGM and Paramount Pictures, was becoming increasingly costly and complex for Netflix.
This forced the company to reinvent itself again.
THE CREATOR:
In 2013, Netflix took its biggest leap of faith in reinventing itself as a TV and movie studio and launched Netflix Originals.
Netflix produced its first show “House of Cards“, which received rave reviews from both critics and customers and this marked a crucial turning point in Netflix’s growth as a company.
Netflix had finally begun to realize its ambitions of being a one-stop-shop for original content, distributed via Netflix’s proprietary platform.
The more content Netflix produced, the more subscribers it attracted which in turn resulted in higher revenues, which meant more funding for original content in a virtuous cycle of constant growth.
Some of the popular shows that Netflix product which made it won accolades are: House of Cards, Beast of No Nation, Stranger Things, Black Mirror, The Crown, etc.
PRICE: PRICING STRATEGY OF NETFLIX
Over time, Netflix has restructured its pricing strategy in a big way. The company has unbundled streaming plans and has different price entry points for different regions/countries. Pricing strategy is one of the major factors in Netflix Marketing Mix
Netflix follows value based pricing and has 3 main plans – Basic Plan, Standard Plan and Premium Plan.Different plans have different features and offerings.
Basic Plan – Its the entry plan with a starting price of Rs. 500 in India, $9.99 in Canada and $9 in the USA. This plan does not offer UHD or HD streaming and allows only 1 device screening option at a time.
Standard Plan: This plan starts at Rs. 650 in India, $13.99 in Canada and $ 11 in the USA. This plan offers HD streaming but not UHD and allows 2 device viewing option at a time.
Premium Plan: This is the most popular plan which offers both UHD and HD streaming option and gives the option to view the content on 4 screens at the same time. The price starts at Rs. 800 in India, $16 in Canada and $14 in the USA.
PLACE :
After a long day at work, what would you be your preferred destination/place that you would want to go to relax and switch off – A pub, partying with friends or your couch accompanied by your blanket, popcorn, and your favorite movie or show?
I guess majority would choose the latter – And that’s the secret sauce of Netflix’s success.
Netflix’s website and mobile application have played a big part in the success story of Netflix. The company has made continuous efforts in improving their application every different platform like Apple TV, Xbox, Web, Android , iOS, Android TV, etc.
A tech company at heart, Netflix has always leveraged technology to improve the customer viewing experience like:
- Netflix let’s a user to have five different profiles on one account and each profile have their own unique settings and recommendation lists.
- Smart download: Netflix automatically downloads the episodes of the series a user is watching, thus allowing the users to enjoy Netflix even when they are on the go or just in a place with pricey or spotty internet access.
- Smart suggestions: Based on the users past viewing pattern, Netflix’s AI engine suggests the user a show they might like to watch.
- Cross- Platform feature of Netflix allows the user to access their favourite show from any web enabled device.
PROMOTION:
Netflix is nothing short of a genius when it comes to advertising and promoting its shows.
Netflix uses proper mix of Offline and Digital marketing channels for advertising its services.
The company uses snack-able and captivating content for its digital promotion that creates curiosity among users to view their new shows.
Check out Marketing Strategy of Netflix to understand the promotional mix of Netflix.
This concludes the Netflix marketing mix. Leave a comment in the comment box if you thing there is any other factor that attributes to the company’s growth.