MINOR PROJECT ON

MARKETING STRATEGY OF NETFLIX

Project report submitted in partial fulfilment of the

requirement of degree of
Bachelors of Business Administration
(2021-2024)
Under the guidance of
JASPREET KAUR
Submitted by:-
ANYA GUPTA
Enrollment number- 09690201721

SRI GURU TEGH BAHADUR INSTITUTE OF

MANAGEMENT AND INFORMATION
TECHNOLOGY
DECLARATION
CERTIFICATE
ACKNOWLEDGEMENT
 INDEX
S.no Particulars Remarks
 CHAPTER 1

INTRODUCTION TO NETFLIX

Netflix was founded in 1997 by Reed Hastings and Marc Randolph in a small
California city called Scotts Valley in Santa Cruz county. Reed Hastings has said
the idea was sparked by a $40 fine he got for renting the movie Apollo 13 from
long-dead Blockbuster and returning it six weeks late. While working out at the
gym one day, the sting of the fine inspired him to think up a service that allowed
one to order a movie online and get it by mail.
According to Marc Randolph, however, this story is not true and was just a
marketing gag. Instead, in early 1997, Reed was the CEO of the company they
worked for (Pure Atria), and Marc was its VP of Corporate Marketing. Because a
looming merger with another firm would leave them both out of a job, Marc says
Reed had told him, "Let's come up with an idea and you can run it and I'll fund it."
As they carpooled to work every day from their homes in Santa Cruz to Silicon
Valley, Marc, who wanted to start something like Amazon.com, pitched all sorts
of e-commerce ideas to Reed: surfboards, custom-built baseball bats, personalized
dog food, and home-delivery shampoo. To all of them, Reed's reply was simply,
"that will never work."
Then, Marc heard of a hot new product invented in Japan called the DVD. He
realized DVDs would soon replace VHS Cassettes as the home viewing standard.
After a bit of brainstorming in the car on Highway 17, Reed was sold on the idea.
On a hot summer day in 1997, Marc and Reed walked into Logos Books &
Records in Santa Cruz, bought a CD of Patsy Cline's greatest hits, and mailed it to
Reed's house a few blocks across the town. When the CD arrived intact, they knew
they had found their ticket to e-commerce glory.
On August 29, 1997, Netflix was registered and set up using at least $1.9 million
from Reed Hastings. Other investors later supplemented this capital. Reed
Hastings, 37, became Chairman with 70% ownership, and Marc Randolph, 39, the
After a few iterations in its first few years, Netflix eventually crafted a successful
business model: a subscription-based service with no due dates or late fees and
unlimited CEO and a minority owner access to content at $19.95. It also had a
"Queue" that subscribers use to specify the order in which DVDs should be mailed
to them and a delivery system that automatically mails out a DVD as soon as the
previous DVD is returned.

At first, Netflix would pack the DVDs in white envelopes, and it wasn't until 2000
that Netflix changed them to yellow envelopes. But it only took the company one
year to switch to the iconic red envelopes we're more familiar with. The DVDs
arrived in a thin package with a postage-paid return sleeve inside, and Netflix
covered all postage costs.

KEY NETFLIX MILESTONE

August 29, 1997: Netflix is registered in Scotts Valley, California. The service is
called Kibble in beta testing, a kind of dog food, to remind the team of the old
advertising adage that "It doesn't matter how good your dog food advertising
campaign is if the dogs won't eat the dog food."
April 14, 1998: The website launches as Netflix at 9 am. The video library has
approximately 900 titles. Marc orders the movie Casino as a test, and it works.
Within 15 minutes, the website crashes as other orders start coming in, forcing
them to run to the store to buy more servers. At the end of the first day, they
booked 137 orders.
1999: 239,000 subscribers sign up. Netflix's video library expands to 3,100 titles.
After a meeting between Marc and Sony goes bad, and growth becomes sluggish,
Reed demotes Marc to President and takes over as CEO.
2000: Reed Hastings approaches former Blockbuster CEO John Antioco and asks
him to buy Netflix for $50 million. During the meeting, John turns him down and
laughs at Reed and the Netflix team.
2001: Netflix hits one million subscribers and continues to grow.
2002: Netflix goes public in May. The IPO raises $82.1 million and values Netflix
at $309.7 million. Reed has 500,000 shares, and Marc has 166,000 shares.
Netflix opens regional warehouses, bringing overnight delivery in response to
subscriber complaints that it took too long to get their DVDs.
2003: Marc Randolph leaves Netflix and sells his shares.
2006: Netflix finally becomes profitable, generating more than $80 million.
Subscribers rise to 6.3 million.
2007: Netflix begins streaming content, delivering directly to TVs, computers, and
tablets through its Watch Now service. The first trial is in Canada. The service
launches with 1,000 titles and is included free in Netflix's $5.99 per month physical
DVD subscription tier.
2010: Netflix changes its focus to streaming and introduces it to the United States.
Reed tells investors, "Three years ago we were a DVD by-mail company that
offered some streaming. We are now a streaming company which also offers DVD
by mail."
2011: Netflix splits its streaming business and its DVD rental business into two
distinct subscription packages: Netflix for streaming and Qwikster for DVD
rentals. Reed reverses the unpopular decision in less than a month after 800,000
subscribers abandon Netflix.
2012: Netflix starts making original shows. Its first show is Lilyhammer, followed
by House of Cards in 2013. Since then, it has produced over 1,900 originals
(becoming one of the best streaming services for original content), many of which,
like Squid Game and The Crown, have gone on to be tremendously popular and
won many awards.
2013: Netflix introduces user-profiles and rolls this feature out to all Netflix
subscribers in August.
2015: Netflix is present in 50 countries.
2016: Netflix goes live in 130 countries simultaneously and adds local languages
to its user interface, subtitles, and dubbing.
2017: Netflix officially hits 100 million subscribers worldwide.
2021: Netflix hits 209 million subscribers in over 190 countries. Notable
exceptions are North Korea, Syria, China, and Iran. It has more than 15,000 titles
across all its international libraries and earns over $25 billion in annual revenues.
The company introduces mobile games, allowing users to play games on Netflix.
Netflix original program like “Stranger Things”, “House of Cards”, “Narcos”, and
many others is more likely why people choose Netflix as their internet-based TV
subscription. They always create new original series and broaden their content
library with a popular movie like Oscar Nominee movies or superhero movies
from Disney Marvel that they got their license to stream on Netflix starting from
September 2016.
With the net content of the Netflix’s library has around $11bn worth, Morgan
Stanley calculates this worth more than the net book value for established
broadcasters Viacom, Discovery, AMC Networks and Scripps combined
(Bradshaw and Bond, 2017). Through their own work philosophy Freedom &
Responsibility, Netflix can create the disruptive environment they need so they
will have a competitive advantage (Netflix, 2017). Bold and different decision that
Netflix made for example “burning” cash flow for their investment in original
content to compete with a big competitor like Disney that has a lot of famous
franchises which ironically Netflix depend on it based on their contract that will
expire in 2019

Despite its impressive performance, Netflix — which posted a revenue of $25

billion globally for FY20 — has a tall challenge ahead to grow further. The 5.4-
million subscriber count places it at No. 4 in this segment of around 96 million
subscribers (taken as the number of paid users multiplied by the number of OTT
platforms for which they cut a cheque; unique subscribers would be around 40
million). The challenge is tall because market leader Disney+ Hotstar has an
estimated 34.5 million subscribers, while Amazon Prime Video (19.7 million) and
Zee5 (6.5 million) are also ahead of Netflix. To climb this pecking order, the
company needs to go beyond the Rs 199 plan and scythe through its premium
imagery to broaden its appeal to the mass consumer.
The success of Netflix and other OTT players marks a sea change in the business
model to make money in a dominant free content marketplace. “For the first time,
you have a new technology and a new platform with some very strong pulls,” says
serial entrepreneur Ronnie Screwvala, a veteran in the space since the 1990s, and
now Co-founder and Executive Chairman of edtech platform upGrad. “The OTT
landscape has done what cable and broadcasting and DTH couldn’t do for 20-25
years — get the consumer to appreciate great and strong storytelling, and pay for
it.”

Netflix's net income from 2000 to 2021(in million U.S. dollars)

CHAPTER 2
 INTRODUCTION TO MARKETING STRATEGIES OF
NETFLIX

What is the Netflix Marketing Strategy?

Netflix marketing is an integrated, agile approach to brand development

and customer relationship management, which works great in the digital age thanks
to innovation, adoption of the latest technology, creative advertising, and real-time
data analytics.

Unlike traditional marketing methods that focus on making the sale through one or
two channels, modern marketing the Netflix way evolves with the changes in the
market.

With constant analysis and optimization, your brand too can connect with
customers across a range of mediums, devices, and touchpoints, just like Netflix.

In essence, the modern marketing tools used by Netflix are data-driven, customer-
centric, personalized, and omnipresent.

What are the Key Principles of Netflix Marketing?

The Netflix marketing strategy is a wonderful example of adopting the core

principles of modern marketing. The marketing at Netflix is always customer-
centric, integrated, and agile.
Netflix Marketing is Customer-centric

Modern marketing tools put customer experience at the forefront of all business
objectives and partnerships Therefore, modern marketers must learn from Netflix
and collect, analyze, and apply data insights across all stages of the customer
journey.

Netflix marketing is Integrated

With a blend of traditional and digital marketing strategies, modern marketers can
capture audiences across a wide range of channels.

Marketers must seek innovative ways of bringing multiple channels and tools
together to offer a better customer experience, the way Netflix does.
Think about how often you come across Netflix advertising on mobile phones,
although most people watch Netflix on larger devices, like TVs or tablets.

That’s how you build a modern marketing strategy to work for today’s audiences,
because even if your product or service is best experienced on a personal
computer, your target audience is still easier to reach on mobile phones.

Netflix Marketing is Nimble & Innovative

Modern marketing is agile in the sense that it moves with the times.

The best marketers of today use technology effectively in line with a marketing
strategy that is designed for unrivaled, personalized customer experiences.
By harnessing the power of data analytics, modern marketers can capture the
minds of consumers, reacting to their needs in ways that delight and surprise them.

This must have been your experience too as a Netflix subscriber. Plenty of times
you’re looking for a movie and Netflix just suggests it to you, even though you
didn’t search for it.

Netflix uses customer data analytics to get the content recommendations right.

7 Key Lessons From Netflix Marketing

1: Use Multi-channel Marketing to Connect with People Online and Offline

When it started, Netflix was a delivery DVD service.

Over time, the company has diversified to offer their products to people on a range
of devices.

Now, many Smart TVs already have Netflix installed. You can watch Netflix on
your TV or computer, smartphone, or tablet.

The company pulls out all the stops to meet their audience wherever they are.

To demonstrate this modern marketing technique, we can look to the time when
the 80s-nostalgia-inspired hit Stranger Things was set to return for its sophomore
season.

Rather than putting all their eggs in one basket, Netflix made concerted efforts on
several different channels to guarantee maximum audience engagement:

 Snapchat – Netflix paid for an interactive ad, offering Snapchat users

an augmented reality experience where they could explore Joyce Byers’
house with the creepy Christmas lights.
 Twitter – The novel feature of Barb’s Magic 8 Ball was a subtle way to stir
up interest.
 Word-of-mouth marketing – The first season became a huge hit on its
own, purely by word-of-mouth.
 This effect rolled on during the wait for the second season, eliciting praise
from celebrities and inspiring a pop-up bar in Chicago.

It’s notable that their marketing team came up with creative ideas for different
social media platforms — they didn’t regurgitate from one to the next.
The Takeaway

Netflix understood the features of modern marketing services and knew early on
that their audience was very active on social media, so they aligned
their marketing strategy to engage users there.

They also used a different idea for each channel.

Today’s consumers use more than one medium to connect with brands.

By implementing a cross-channel marketing campaign, you can reach people

wherever they are, engaging them on multiple touchpoints to nurture more interest
in your products.
2: Make Emails Memorable and People Will Talk

Don’t believe the rumors – email is not dead. Far from it.

Netflix is just one of many companies that are tapping into the present-day
potential of email marketing, pairing it with machine learning-based systems to get
more from their consumer data.

After all, what good is data if you don’t know how to use it?

The Netflix marketing strategy incorporates email to introduce new users to the
streaming platform.

Then, Netflix segments users into groups and offers personalized product
recommendations and relevant updates based on their preferences.

While these tactics are commonplace among leading forces online, one of the
best email marketing tips from Netflix is this:

Don’t be afraid to take risks.

Netflix took a chance when they were promoting their new show, The
Punisher. They sent an email that looked like spam, and could easily have been
rejected or thrashed by many people immediately.

However, once the email was opened, a GIF began to play. Suddenly, The
Punisher logo flashes up on the screen, employing subliminal advertising to
encourage people to watch the show.
Another example was their email for House of Cards, which merely included the
show title, the release date, and the phrase, “coming soon”.

The Takeaway

Email marketing isn’t dead.

However, boring, unimaginative emails may as well be sent to the graveyard for all
the hype they’ll create.

Netflix seeks to find unique and innovative ways of leveraging this old marketing
channel.

Why?

Because it still has a lot of potential value, offering marketers an incredible 4000%
return on investment (ROI), if not more.

Providing your emails are valuable and skimmable, you can hook the attention of
your prospects with very little outlay.

3: Offer Personalized Content to Keep People Hooked

What makes Netflix superior to other streaming services like HBO and Amazon
Prime?
They all have hundreds of fantastic shows and movies. Each of them has an
intuitive user interface, and all can be enjoyed on an array of different devices.

The reason that Netflix is so dominant boils down to its obsession

with personalization. This is a core component of modern marketing success in
virtually every industry today.

The average person flicks through 40 to 50 options on Netflix before choosing one
to watch.

Thanks to personalization, no two users will have an identical homepage.

The advanced algorithm at play will continue to rearrange the programs over time,
based on factors like your viewing history and preferred genres.

But what if you don’t have smart computers and high-paid software engineers to
create advanced algorithms?

Well, thankfully, personalized marketing isn’t limited to computer geniuses with

deep pockets.

Your company can still offer a personalized experience by leveraging what you
know about your customers and then applying it to your various marketing
channels.

In 2018, CMO reported that consumer desire for personalized content reached an
all-time high, with 42% of people claiming they get annoyed whenever the content
isn’t personalized for them.
Even if you can’t do it on a large scale, you’ll still avoid deterring people with
generic guesswork content that has nothing to do with their interests.

It’s worth a try.

The Takeaway

Don’t disregard personalization just because you haven’t got a large budget or the
desired skill set.

By focusing on your customers, you can create tailor-made shopping experiences

that cater to their interests, which ultimately get more engagement.

Over time, a modern marketing strategy that focuses on personalization and the
customer experience will help build trust in your company, which leads to stronger
customer relationships.

4: Let Data Show You the Secrets to Better Customer Service

The reason email marketing and personalization are so ingrained in modern
marketing is that they are both built upon a very solid foundation.

That foundation is data.

The rise of marketing automation has paved the way for greater personalization, as
it allows companies to analyze data, and react to it accordingly.

Better yet, automation can do this instantaneously.

Netflix recognized the value of big data and automation a decade ago, going as far
as to offer a $1 million prize to whoever could produce the best algorithm for
predicting customer ratings based on data about previous ratings.

The Takeaway

Many companies are still in the mode of being reactive.

However, one of the best modern marketing tips from the Netflix strategy is that
we need to be proactive instead.

With better data analysis, you can understand what people are looking for, and
you’ll be able to provide it before the demand truly arises.

Once it does, your product is the obvious go-to solution.

5: Embrace Machine Learning to Enhance the User Experience

As already mentioned, no two user accounts on Netflix will be the same.

The order of the shows will be arranged based on the user activity on that account.
However, the order of the shows is not the only aspect that continues to evolve.

Have you ever noticed the artwork on shows change from one day to the next?

For example, you may see all five school-uniform clad stars of Derry Girls one
day, only for the image to be replaced on your next visit by the scowling face of
the show’s lead character, Erin.
This comes down to machine learning.

The company’s vice president, Todd Yellin explains how Netflix puts this
revolutionary technology to good use.

Netflix has created several ‘landing cards’ for each of their shows, and the
company runs some 250 A/B tests every year.

This gauges engagement based on the artwork.

With two groups of about 100,000 people each – one control group and one test
group – Netflix is able to offer varied landing cards and see if one version truly has
an impact on engagement.

The Takeaway

Machine learning is a game-changing tech that has already transformed marketing

research in a big way, in many industries.

With an ML-based tool at the core of your modern marketing strategy, you will be
able to take personalization and automation to an entirely different level.

6: Make Interactive Products and Experiences to Generate a Buzz

Netflix’s shockingly popular, and oft-times disturbing series, Black Mirror focuses
on the warped possibilities of technology.

But even by the daring heights the dystopian series reached before, it’s interactive
feature-length offering Bandersnatch broke new ground entirely.
By allowing viewers to take part in the story, making key decisions for the
protagonist at every turn, this daring change in the Netflix business model has
opened the door to the future of television.

Some people were hooked for as long as four hours on this episode, continually
attempting to navigate their way to a happy ending.

While that is ultimately a futile exercise, the enjoyment in trying still keeps
viewers engaged.
The Takeaway

Content marketing has become formulaic over the past decade, making it hard to
get noticed even when you’re doing all the right things.

The companies who truly think outside of the box stand to gain a lot of attention.

By creating standalone products or unique experiences that start new

conversations, your brand can build instant awareness and recognition.

7: Focus Your Customer Service on the People Who Matter

On June 28th, 2018, Netflix did something quite brilliant.

It was also somewhat of a gamble, which could easily have backfired.

But, as you’ve no doubt gathered by now, Netflix isn’t afraid to take a risk or try
something a little bit edgy.

The year was a big year for black actors, as many stars of African-American
descent made their breakthrough.

Traditionally, Hollywood has been a tough nut to crack for people of color. But
where some people saw barriers, Netflix saw an opportunity.
The company is always testing out new ideas, embracing new technology, and
leveraging machine learning and data analytics as much as possible to engage
audiences.

Netflix seeks to connect with people through omnichannel marketing, and

ultimately, offer a customer-centric, personalized user experience that people
won’t forget.

CHAPTER 3

RESEARCH METHODOLOGY

Research methodology is a way of explaining how a researcher intends to carry out

their research. It's a logical, systematic plan to resolve a research problem. A
methodology details a researcher's approach to the research to ensure reliable, valid
results that address their aims and objectives

He purpose of a research methodology is to explain the reasoning behind your

approach to your research - you'll need to support your collection methods,
methods of analysis, and other key points of your work.
Think of it like writing a plan or an outline for you what you intend to do.
When carrying out research, it can be easy to go off-track or depart from your
standard methodology.
Having a methodology keeps you accountable and on track with your original
aims and objectives, and gives you a suitable and sound plan to keep your
project manageable, smooth, and effective.
A good research methodology will explain what you are going to do and why,
while a poor methodology will lead to a messy or disorganized approach.
You should also be able to justify in this section your reasoning for why you
intend on carrying out your research in a particular way, especially if it might be
a particularly unique method.
Research methodologies tell the systematic method for acquiring data and studying
it for deriving out crucial findings. This is an important process that helps in
solving problems and making business decisions. It enables management for
properly organizing their efforts in a right direction for generating an idea.

Methodology of research indicates and influences the overall validity and

reliability of whole research to be conducted. Methodology answers mainly two
questions regarding research that are how the data used for study was acquired and
how it was analyzed to derive out the findings.

Research methodologies are broadly classified into two main categories:

Quantitative research methods and Qualitative research methods. Quantitative
research is one which is based on quantitative terms and involves collection of
numerical data, analyzing it and drawing conclusions using numbers. Qualitative
research on other hand, is one which is done using non-numerical and
unquantifiable elements like feelings, emotion, sound etc.
AIMS AND OBJECTIVES OF RESEARCH METHODOLOGY
Develop better insights into topics

Research methodology provides better familiarity with the research topic by

properly explaining each concept associated with it. It aims at the proper analysis
of every aspect and accurately portrays all findings of the project.

Provides Systematic Structure

Research methodology eases the process of whole research to be done. It clearly

defines the tools and techniques to be used for collecting, analyzing and
interpreting the data to find out the solutions.

Enhance the Research Quality

It determines the reliability and validity of the whole research work. Research
methodology tells accurate sources from where data should be taken for studying
purpose which thereby improves the quality of research done.

Derive Better Solutions

Research methodology helps in deriving crucial findings for solving business

problems. It performs an in-depth study of various projects, develops a better
understanding and detects all problems.

Aids in Decision Making

Decision making is another important role played by research methodology. It

supports management in organizing their efforts in generating a new idea.
Research methodology by providing direction for various activities of the project
helps managers for efficient decision making.
Research Limitations

It is for sure that the research will have some limitations and it is normal. However,
it is critically important to be striving to minimize the range of scope of limitations
throughout the research process. Also, you need to provide the acknowledgement
of your research limitations in conclusions chapter honestly.
It is always better to identify and acknowledge shortcomings of your work, rather
than to leave them pointed out to your by your dissertation assessor. While
discussing your research limitations, don’t just provide the list and description of
shortcomings of your work. It is also important for you to explain how these
limitations have impacted your research findings.
Your research may have multiple limitations, but you need to discuss only those
limitations that directly relate to your research problems. For example, if
conducting a meta-analysis of the secondary data has not been stated as your
research objective, no need to mention it as your research limitation.
Research limitations in a typical dissertation may relate to the following points:

1. Formulation of research aims and objectives. You might have formulated

research aims and objectives too broadly. You can specify in which ways the
formulation of research aims and objectives could be narrowed so that the
level of focus of the study could be increased.

2. Implementation of data collection method. Because you do not have an

extensive experience in primary data collection (otherwise you would not be
reading this book), there is a great chance that the nature of implementation
of data collection method is flawed.
 3. Sample size. Sample size depends on the nature of the research problem.
If sample size is too small, statistical tests would not be able to identify
significant relationships within data set. You can state that basing your study
in larger sample size could have generated more accurate results. The
importance of sample size is greater in quantitative studies compared to
qualitative studies.

4. Lack of previous studies in the research area. Literature review is an

important part of any research, because it helps to identify the scope of
works that have been done so far in research area. Literature review findings
are used as the foundation for the researcher to be built upon to achieve her
research objectives.
5. Scope of discussions. You can include this point as a limitation of your
research regardless of the choice of the research area. Because (most likely)
you don’t have many years of experience of conducing researches and
producing academic papers of such a large size individually, the scope and
depth of discussions in your paper is compromised in many levels compared
to the works of experienced scholars.

First, decide how you will collect data. Your methods depend on what type of
data you need to answer your research question:
 Qualitative vs. quantitative: Will your data take the form of words or
numbers?
 Primary vs. secondary: Will you collect original data yourself, or will you
use data that has already been collected by someone else?
  Descriptive vs. experimental: Will you take measurements of something as
it is, or will you perform an experiment?
Second, decide how you will analyze the data.
 For quantitative data, you can use statistical analysis methods to test
relationships between variables.
 For qualitative data, you can use methods such as thematic analysis to
interpret patterns and meanings in the data.

Methods for collecting data

Data is the information that you collect for the purposes of answering
your research question. The type of data you need depends on the aims of your
research.

Qualitative vs. quantitative data

Your choice of qualitative or quantitative data collection depends on the type of

knowledge you want to develop.
For questions about ideas, experiences and meanings, or to study something that
can’t be described numerically, collect qualitative data.
If you want to develop a more mechanistic understanding of a topic, or your
research involves hypothesis testing, collect quantitative data.
You can also take a mixed methods approach, where you use both qualitative and
quantitative research methods.

Primary vs. secondary data

Primary data is any original information that you collect for the purposes of
answering your research question (e.g. through surveys, observations
and experiments). Secondary data is information that has already been collected by
other researchers (e.g. in a government census or previous scientific studies).
If you are exploring a novel research question, you’ll probably need to collect
primary data. But if you want to synthesize existing knowledge, analyze historical
trends, or identify patterns on a large scale, secondary data might be a better
choice.

Descriptive vs. experimental data

In descriptive research, you collect data about your study subject without
intervening. The validity of your research will depend on your sampling method.
In experimental research, you systematically intervene in a process and measure
the outcome. The validity of your research will depend on your experimental
design.
To conduct an experiment, you need to be able to vary your independent variable,
precisely measure your dependent variable, and control for confounding variables.
If it’s practically and ethically possible, this method is the best choice for
answering questions about cause and effect.

Methods for analyzing data

Your data analysis methods will depend on the type of data you collect and how
you prepare it for analysis.
Data can often be analyzed both quantitatively and qualitatively. For example,
survey responses could be analyzed qualitatively by studying the meanings of
responses or quantitatively by studying the frequencies of responses.
Qualitative analysis methods

Qualitative analysis is used to understand words, ideas, and experiences. You can
use it to interpret data that was collected:
 From open-ended survey and interview questions, literature reviews, case
studies, and other sources that use text rather than numbers.
 Using non-probability sampling methods.
Qualitative analysis tends to be quite flexible and relies on the researcher’s
judgments, so you have to reflect carefully on your choices and assumptions.

Quantitative analysis methods

Quantitative analysis uses numbers and statistics to understand frequencies,

averages and correlations (in descriptive studies) or cause-and-effect relationships
(in experiments).
 You can use quantitative analysis to interpret data that was collected either.
 During an experiment.
 Using probability sampling methods.
Because the data is collected and analyzed in a statistically valid way, the results of
quantitative analysis can be easily standardized and shared among researchers .

RESEARCH METHODLOGY USED BY NETFLIX

As the world’s leading Internet television network with over 160 million members
in over 190 countries, our members enjoy hundreds of millions of hours of content
per day, including original series, documentaries and feature films. We invest
heavily in machine learning to continually improve our member experience and
optimize the Netflix service end-to-end. As researchers, we innovate using
machine learning in many areas where we prototype, design, implement, evaluate,
and productionize models and algorithms through both offline experiments and
online A/B testing.
Machine learning impacts many exciting areas throughout our company.
Historically, personalization has been the most well-known area, where machine
learning powers our recommendation algorithms.
We’re also using machine learning to help shape our catalog of movies and TV
shows by learning characteristics that make content successful. We use it to
optimize the production of original movies and TV shows in Netflix’s rapidly
growing studio. Machine learning also enables us to optimize video and audio
encoding, adaptive bitrate selection, and our in-house Content Delivery Network
that accounts for more than a third of North American internet traffic. It also
powers our advertising spend, channel mix, and advertising creative so that we can
find new members who will enjoy Netflix.
Using machine learning pervasively across Netflix brings many new challenges
where we need to push forward the state-of-the-art.

This means coming up with new ideas and testing them out, be it new models and
algorithms or improvements to existing ones, better metrics or evaluation
methodologies, and addressing the challenges of scale. Our research spans many
different algorithmic approaches including causal modeling, bandits, reinforcement
learning, ensembles, neural networks, probabilistic graphical models, and matrix
factorization.
Now, let’s have a look at the business model of Netflix.

1. Netflix’s Key Partners:

 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.
 Built alliances with Smart TV companies like LG, Sony, Samsung, Xiaomi
and other players in the market.
 Built alliances 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.
2. Netflix’s Value Proposition: Netflix aims to provide the best customer
experience by deploying valuable propositions. Here is how the online streaming
brand strives to do so:
 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.
 Users get access to thousands of movies and tv shows and Netflix Original
movies or shows.
 New signups can avail a 30-day free trial and have the option of cancelling
your subscriptions anytime.
 Receive algorithmic recommendation for new items to watch.
 At Netflix, users have the flexibility to either turn on notifications and
suggestions or keep them switched off.
  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.
 Sharing accounts options is one of the rarest features a movie platform can
provide. Sharing accounts feature on Netflix allows spouses, friends or even
groups to share an account with specific filters and preferences already set.

3. Netflix’s Key Activities

 Maintain and continue to expand its platforms on the website, mobile apps
 Curate, develop and acquire license for Netflix’s original content and expand
its video library.
 Ensure high-quality user recommendation to retain customer base
 Develop and maintain partnerships with studios, content production houses
and ovie production houses.
 Operate according to the censorship laws. Netflix always promotes and
operates within the boundaries of censorship.

4. Netflix’s Customer Relationships: Netflix has designed customer-friendly

platform which offers:
 Self-Setup: Netflix platform was originally designed to ensure that it is
simple and easy to use. Developers of the website ensured to associate
elements and themes that serve, promotes friendliness and provides self-
setup.
 Unbelievable Customer Experience: Customers can solve their queries by
reaching the Netflix team through website portal, emailing enquiries and
directly reaching the representative on call or live chat.
  Social Media Channels: Netflix also engages its audience through social
media platforms such as Facebook, Instagram, LinkedIn. It advertises, offers
deals to gain the high attraction customers and enhance customer base.
 Netflix Gift Cards: Netflix offers its customers special promotional
discounts and other gift cards as a part of their subscription plan.

Netflix’s Revenue Model

Netflix gained major popularity when the platform launched online streaming
services. Let’s have a look at how the platform earns.
 Subscription-Based Business Model: Netflix offers monthly subscriptions
fees with three different price options like basic, standard and premium plan.
Today, Netflix has over 125 million paid members from over 190 countries
and generates $15 billion annually.
 Important partnerships: Built its alliances with a wide range of movie
producers, filmmakers, writers, and animators to receive content and legally
broadcast the contents required aligning licenses.
 Internet Service Provider: One of the most influential tactics implemented
was its ability to build alliances with a wide range of movie producers,
filmmakers, writers, and animators to receive content and legally broadcast
the contents required aligning licenses.
Netflix was able to establish a well-reputed image worldwide and increased its
customer base day-by-day. When it comes to giving a competition, the brand has
devised various digital marketing strategies and have gained wide popularity on
digital media platforms. With the help of best digital marketing services, they have
kindled the excitement and craze in the people to travel and host.
Digital Marketing Model of Netflix
In less than 4 years, Netflix has gathered a major share of the Indian market. Today
a majority of households in India subscribe to Netflix, and that number is expected
to rise this year and further the years to come. The product is designed so well, that
you remain engrossed in the content they deliver. They adopted top digital
marketing strategies. Consult the best brand activation agencies. Further, let’s
talk about a few of the digital marketing principles that Netflix has successfully
implemented to gather customers.

1.Personalised Content Marketing: People love using Netflix because they get a
broad range of things to watch. Netflix’s library of TV shows and movies from all
over the world is there for consumers to choose from at any time.
The reason that Netflix won the personalisation game is that its advanced
algorithm continues to rearrange the programmes over time on the basis of your
viewing history. Hire some of the best performance marketing agencies for
personalised content.

2. Website Development: Netflix has designed its 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. With
the onsite optimization for the website, they have optimized each and every page
for enhanced customer experience.
To easily get in the minds of customers, they have optimized their website for
content by title, by an actor’s name, or even by a director’s name. By leveraging
the best website development services, they added a host of personalisation
features to their website with clean looks no matter which platform you are using.
3. Email Marketing: Netflix tapped on email marketing techniques as a part of
their digital marketing strategy and as a key component of customer onboarding
and nurturing. New Netflix customers receive 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. With the help of best email marketing services,
they continue to enhance the experience of the customers

4. Search Engine Optimization: Netflix makes use of search engine optimization

services for the sake of improving organic research and establishing their brand
presence. The brand aimed at best search engine optimization services to drive
the traffic organically and 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.

5. Social Media Optimization: Today, social media platforms have become an

integral part of the digital marketing strategy. If you want to connect with your
audience in real-time, then it is the best platform to establish your brand image. As
social media plays a vital role in the lives of the people, Netflix decided to
leverage best social media optimization services that made them earn billions.

They made use of following platforms:

Facebook
Through creative social media optimization strategies Netflix has garnered more
than 61 million Facebook followers. In just one year, the brand added 11 million
followers to its account. Netflix posts nearly 90% videos and rest images. Videos
featured on Netflix’s
Facebook page are typically clips from interviews with the actors from the
upcoming movies, clips from the upcoming movies and TV shows, offering
audiences a sneak peek into what’s in store for them. Besides videos, the OTT
platforms share images, GIFs, funny memes, simple text posts featuring questions
about current movies and TV shows.

Instagram
Netflix carries 19 million followers. The majority of Netflix’s posts on Instagram
are images, post scenes from TV shows featuring engaging captions to get a
conversation going, and behind the scenes clips and interviews with actors. A
recent video featured a behind-the-scenes bloopers video from the set of Stranger
Things, which garnered 1.2 million views and almost 3,000 comments. Netflix
uses a simple approach to posting, with most posts not featuring any hashtags at
all.

Twitter
Netflix carries 6.8 million followers on Twitter and has tweeted over 30,000 times.
Netflix is renowned for its witty replies and comebacks on Twitter, and the brand
tweets an average of 14 times a day.
 CHAPTER 4
FINDINGS AND DISCUSSION

The success of Netflix and other OTT players marks a sea change in the business
model to make money in a dominant free content marketplace. “For the first time,
you have a new technology and a new platform with some very strong pulls,” says
serial entrepreneur Ronnie Screwvala, a veteran in the space since the 1990s, and
now Co-founder and Executive Chairman of edtech platform upGrad. “The OTT
landscape has done what cable and broadcasting and DTH couldn’t do for 20-25
years — get the consumer to appreciate great and strong storytelling, and pay for
it.

Netflix is aggressively creating original content for local audiences. According to

Dorothy Ghettuba, the head of African Programming, it is no longer necessary to
go to Hollywood. With Netflix, one can be a superstar in their backyard and export
their content to the world.
Over the years, Netflix has gained competitors, including Disney+, Hulu, ESPN+,
Prime Video, HBO Max, and YouTube TV. These competitors invest heavily in
different ways to entertain their audiences. To stay ahead of the pack, Netflix may
have to embrace new emerging technologies and try to keep its content fresh.
CHAPTER 5

CONCLUSION
Netflix is a rare example of a company doing everything right. From their branding
and content right down to their business models and product, the company has
always excelled at.

Making smart, strategies decisions. With their large market share and focus on the
numbers, Netflix has managed to develop a deep understanding of their audience
that very few others have. This knowledge, paired with a strong, affordable
Product, there’s no limit to what this brand can do in the future.

‘ You Want to Nail Modern Marketing, You Must Dare to be Different’

This statement could easily summarise the blog post about Netflix marketing and
what modern marketers should learn from it.

As one of the ultimate digital disruptors, Netflix rose to power by breaking the
mold — and also the hearts of Blockbuster employees and every illegal download
website owner.

It’s no surprise that the company would continue in the same vein by actively
exploring unorthodox means of marketing.