Contents

Acknowledgment ..................................................................................................................................2
1. History of Netflix ..........................................................................................................................0
1.1 Reed Hastings helped cofound Netflix back in the 90s ............................................................0
1.2 Marc Randolph is the other chap behind Netflix ......................................................................0
1.3 When and where was Netflix founded? ....................................................................................1
1.4 Some of the key milestones in Netflix's history........................................................................1
• Netflix accounts hit a record 5 million in 2006 ..................................................................2
• Netflix is added to Playstation and smart-TVs in 2009 ......................................................3
• Netflix connects to Apple devices and expands into Canada in 2010.................................3
• The Qwikster debacle of 2011 ............................................................................................3
• The UK and Nordic countries are taken by storm in 2012 .................................................4
• 2014 sees Netflix's continued expansion into Europe.............................................................4
• Netflix expands into Australasia in 2015............................................................................5
• 2017 is another killer year for the company .......................................................................5
• Things get better and better for Netflix in 2018..................................................................5
• 2019 sees more awards coming Netflix's way ....................................................................6
• What does the future have in store for Netflix? ......................................................................6
2. Business Model of Netflix.............................................................................................................8
2.1 Netflix’s Key Partners: .............................................................................................................8
2.2 Netflix’s Value Proposition: .....................................................................................................8
2.3 Netflix’s Key Activities............................................................................................................8
2.4 Netflix’s Customer Relationships:............................................................................................8
3. Netflix’s Revenue Model..............................................................................................................10
3.1 Subscription-Based Business Model: ..................................................................................10
3.2 Important partnerships: ......................................................................................................10
3.3 Internet Service Provider: ...................................................................................................10
4. Digital Marketing Model of Netflix .............................................................................................10
4.1 Personalised Content Marketing:........................................................................................11
4.2 Website Development:..........................................................................................................11
4.3 Email Marketing: .................................................................................................................11
4.4 Search Engine Optimization:...............................................................................................11
4.5 Social Media Optimization: .................................................................................................11
 4.5.1 Facebook .........................................................................................................................12
4.5.2 Instagram .........................................................................................................................12
4.5.3 Twitter .............................................................................................................................12
5. Campaigns of Netflix ...................................................................................................................13
5.1 Netflix: The Spoiler Billboard: ............................................................................................13
5.2 FU2016: .................................................................................................................................13
5.3 The Censor’s Cut:.................................................................................................................13
6. Key Takeaways from Netflix’s Digital Marketing Strategy .........................................................14
6.1 Intelligent Use of social media .............................................................................................14
6.2 Cooperation and Campaigns ...............................................................................................14
6.3 Personalization at its best.....................................................................................................14
6.4 Humour in advertising .........................................................................................................15
6.5 Keeping up with the latest....................................................................................................15
Segmentation, targeting, positioning in the Marketing strategy of Netflix.......................................16
7. Competitive advantage in the Marketing strategy of Netflix........................................................16
7.1 The simplicity of User Interface .............................................................................................16
7.2 Content is king........................................................................................................................16
8. BCG Matrix in the Marketing strategy of Netflix ........................................................................17
9. Distribution strategy in the Marketing strategy of Netflix............................................................17
10. Brand equity in the Marketing strategy of Netflix ......................................................................17
11. Competitive analysis in the Marketing strategy of Netflix .........................................................17
12. Market analysis in the Marketing strategy of Netflix – ..............................................................18
13. Customer analysis in the Marketing strategy of Netflix .............................................................18
14. Promotion Mix in the Marketing strategy of Netflix ..................................................................18
Conclusion........................................................................................................................................20
1. History of Netflix

Netflix was first founded in August of 1997 by two serial entrepreneurs, Marc Randolph, and
Reed Hastings. The company began out in Scotts Valley, California, and has grown to become
one of the world's leading internet entertainment platforms.

When it first opened, Netflix was purely a movie rental service. Users ordered movies on the
Netflix website, and received DVDs in the post. When they were finished with them, they
would simply post them back to Netflix in the envelopes provided. At the time, this was seen
as a boon to those who did not have a video rental store nearby.

Today, Netflix streams movies and has more than 151 million paid subscribers in over 190
countries around the world. It offers a wide range of TV series, documentaries, and feature
films across a wide variety of genres and languages, including original productions.

1.1 Reed Hastings helped cofound Netflix back in the 90s

Reed Hastings co-founded Netflix in 1997. He was an entrepreneur who in 1991 had founded
Pure Software, which made tools for software developers. After a 1995 IPO and several
acquisitions, Pure was acquired by Rational Software in 1997.

Hastings received a BA from Bowdoin College in 1983 and an MSCS in artificial

intelligence from Stanford University in 1988. Between Bowdoin and Stanford, he served in
the Peace Corps as a high school math teacher in Swaziland. Today, he is an active educational
philanthropist, having served on the California State Board of Education and on the board of
several educational organizations.

1.2 Marc Randolph is the other chap behind Netflix

Marc Randolph is a veteran Silicon Valley entrepreneur, advisor, and investor. As co-founder
and founding CEO of Netflix, he laid much of the groundwork for a service that’s grown to 150
million subscribers and fundamentally altered how the world experiences media.

He also served on the Netflix board of directors until retiring from the company in 2003."
- marcrandolph.com.
Randolph graduated from university with a degree in Geology and would go on to found and
run various mail-order and direct-to-customer companies before Netflix.

Throughout Randolph's career, he founded no fewer than six successful start-ups, including
the magazine Macworld, and has mentored hundreds of early-stage entrepreneurs.

1.3 When and where was Netflix founded?

As previously mentioned, Netflix was founded in 1997 in Scotts Valley, California. It was
originally a rent-by-mail DVD service that used a pay-per-rental model.

Users would browse and order the films they wanted on their website, put in an order, and
Netflix would post them to your door. After renters had finished with the DVDs, they would
simply post them back.

Rentals cost around $4 each, plus a $2 postage charge. After significant growth, Netflix
switched to a subscriber-based model.

With this model, users could keep the DVDs for as long as they liked, but could only rent a
new movie after returning their existing one.

Netflix's mail-order rental model would directly challenge the market dominance of bricks-
and-mortar rental giants like Blockbuster. In fact, Blockbuster could ultimately not compete
with the move to online streaming and rentals and filed for bankruptcy in 2010.

But this never needed to happen. Years earlier, Blockbuster had the opportunity to partner with
Netflix, or even buy the company out.

"In 2000, Netflix CEO and co-founder Reed Hastings approached Blockbuster about a
partnership. Unfortunately for Blockbuster, their CEO just smiled and laughed at him.

In fact, Blockbuster even had a chance to purchase Netflix for $50 million. Netflix currently
has a Market Cap of [$209.74B] (July 2020) and a share price of $476.89, while Blockbuster
is out of business." - rewindandcapture.com.

1.4 Some of the key milestones in Netflix's history

• It all kicks off 1997
Reed Hastings and software executive Marc Randolph co-found Netflix to offer online movie
rentals.
• Netflix launches its DVD rental and sales service in 1998
Netflix launches the first DVD rental and sales site, Netflix.com.
• Their subscriber-based business model launches in 1999
Netflix debuts a subscription service, offering unlimited DVD rentals for one low
monthly price.
• 2000 unveils subscriber personalization
Netflix introduces a personalized movie recommendation system, which uses members’
ratings to predict choices for all Netflix members.
• Netflix goes public in 2002

With a membership count at 600,000 in the US, Netflix makes its initial public offering
(on the Nasdaq, under the ticker “NFLX”). The stock is initially offered for $15 a share,
with an initial offering of 5,500,000 shares. The company ends the year with
around 857,000 registered Netflix accounts. Since then, Netflix has consistently been
one of the best-performing stocks in the S&P 500.
• The company celebrates 1 million accounts in 2003

This year, Netflix hits a new record for the number of members, with more than 1
million. The company also issues a patent with the U.S. Patent and Trademark Office
for its subscription rental service, with some other extensions. Co-founder Marc
Randolph steps down as a member of the board and leaves Netflix in 2003.
• 2004 sees a doubling in the number of Netflix accounts.
This year, Netflix's member base surpasses 2 million. At the same time, Netflix also
faces one of its first encounters with the legal system when they are sued for false
advertising in relation to claims of "unlimited rentals" with "one-day
delivery". The claimant accused Netflix of failing to deliver on these two marketing
promises in the San Fransisco Superior Court, claiming that the company's 3 at-a-time
plan precluded unlimited rentals, and there was no way to ensure the one-day delivery
using "snail mail".
Netflix denied any wrongdoing, and both parties eventually agreed on a settlement.

• Netflix accounts hit a record 5 million in 2006

Netflix sees huge growth in member numbers, reaching 6,3 million subscribers by
years' end. The company also launches its "Netflix Prize", promising a whopping $1
 million to the first person, or team, who can achieve a set accuracy goal in
recommending movies based on personal preferences.

Netflix also released around 100 million anonymous movie ratings, using a system that
rates films from one to five stars. This is the largest set of such data released to date.

• Video streaming is introduced in 2007.

Netflix introduced a streaming service, called "Watch Now", which allows members to
instantly watch television shows and movies on their personal computers. This was a
huge shift in the company's business model. Initially, the service launched with just
1,000 titles and only worked on PCs and Internet Explorer. It also offered a limit on the
number of hours of free streaming (with a maximum of 18 free hours a month), based
on the users' subscription plan.
Netflix was also careful to say that they felt DVDs would be around for a long time.
Despite these limitations, it was soon clear that streaming was the future of
entertainment. By the end of 2007, Netflix had 7.5 million registered subscribers -- up
almost 20% on the previous year.
• Netflix teams up with various consumer electronics companies in 2008
Netflix partners with consumer electronics companies to allow streaming on the Xbox
360, Blu-ray disc players, and TV set-top boxes. The year ends with around 9.4
million subscribers.

• Netflix is added to Playstation and smart-TVs in 2009

Netflix partners with yet more consumer electronics companies to allow streaming on
PS3, Internet-connected TVs, and other Internet-connected devices. Its member base
also expands to an amazing 12 million accounts by the end of the year.
The "Netflix Prize" also finds a winner this year. "Bellkor's Pragmatic Chaos" team,
consisting of seven researchers from four countries. Running for over three years, the
contest had attracted tens of thousands of contestants from more than 180
countries worldwide.

• Netflix connects to Apple devices and expands into Canada in 2010

Netflix is available on the Apple iPad, iPhone and iPod Touch, the Nintendo Wii, and
other Internet-connected devices at this point. Netflix launches its service in Canada.
The year ends with more than 20 million subscribers on the books. This year also
marked the point where the number of customers who were primarily streaming shows,
outpaced those who were renting, leading Hasting to declare in an October earnings
call that, "By every measure, we are now primarily a streaming company that also offers
DVD-by-mail."
• The Qwikster debacle of 2011

Buoyed by the success of its streaming service, Netflix decides to split its streaming
and DVD rental service into two separate services, forcing customers who wanted to
use both to open a second account. Instead of paying $10 a month for DVD rentals and
unlimited on-demand streaming, customers who wanted both services would have to
pay for two different packages, starting at $7.99 each, or $15.98 for the pair.
Within a few months, Netflix had lost 600,000 subscribers in the US and the company's
stock had lost half its value. Despite this, in October, Hastings announced that the
separation would continue, and the DVD service would be called Qwikster. A month
later, facing a shareholder and customer revolt, Hastings abruptly changed course and
abandoned plans for Qwikster, although the DVD and streaming plans would remain
separate.
The debacle was a rare blunder for Netflix, which in the future would be deemed much
smarter owing to the way it raised prices (slowly and stealthily).
This year also saw the launch of Amazon Instant Video, which made available 5,000
movies and TV shows for Amazon Prime members in a move to directly compete with
Netflix.

• The UK and Nordic countries are taken by storm in 2012

Netflix becomes available in Europe, including the United Kingdom, Ireland, and in
the Nordic Countries. Netflix wins its first Primetime Emmy Engineering Award. They
also premiere their first original stand-up special, "Bill Burr: You People Are All the
Same." Netflix also hits 25 million subscribers.

• Netflix becomes an award-winning service in 2013.

Netflix received 31 primetime Emmy nominations including outstanding drama series,
comedy series and documentary or nonfiction special for “House of Cards”, “Orange Is
the New Black”, and “The Square” respectively. Netflix was the first internet TV
network nominated for the Primetime Emmy.
Netflix also releases some other popular original programming like "Hemlock Grove"
and "Arrested Development," while also unveiling the ‘Profiles’ feature, which allows
users to create different profiles for different users and/or different moods.
By year's end, the company has more than 40 million subscribers.
• 2014 sees Netflix's continued expansion into Europe

In 2014, Netflix launched in 6 new countries in Europe (Austria, Belgium, France,

Germany, Luxembourg, and Switzerland), and won 7 Creative Emmy Awards. Netflix
now had more than 50 million members globally.

• Netflix expands into Australasia in 2015

Netflix launches in Australia, New Zealand, and Japan, with continued expansion across
Europe in Italy, Spain, and Portugal. The first Netflix original feature film “Beasts of
No Nation” is released.Netflix also premieres its first non-English original series with
the Mexican comedy "Club de Cuervos."
At the same time, Amazon "Transparent" became the first show produced by Amazon
Studios to win a major award. Netflix was no longer the only streaming game in town.
• 2016 is a big year for Netflix
Netflix expands to another 130 countries around the world, bringing its reach to a total
of 190 countries. It also offers programming in 21 languages. They also unveil their
‘Download’ feature, which allows members to download TV shows and movies for
offline viewing. Netflix continues to expand its collection of original international
shows, with its first French series "Marseille", first Brazilian series "3%", and first non-
English language original film, the Spanish drama "7 Años."

• 2017 is another killer year for the company

This is another good year for Netflix. They win their first Academy Award, for Best
Documentary Short Subject for "The White Helmets". At the same time, subscriber
numbers reach an astounding 100 million globally. Netflix also expands their
international collection with the very popular series' "La Casa De Papel" (from Spain),
"Suburra: Blood on Rome" (from Italy), and "Dark" (from Germany).
The year ends with a minor controversy, as Netflix "calls out" users who watch the same
film multiple times. While done in jest, it also made users very aware that their watching
habits were being monitored by the company, and sparked concerns over privacy. This
year, Amazon also began to make sports-related content acquisitions, acquiring non-
exclusive rights to stream portions of the NFL's "Thursday Night Football" games in a
$50 million deal.

• Things get better and better for Netflix in 2018

This year, Netflix wins more Academy Awards for its original content, including Best
Documentary Feature for "Icarus." 2018 also sees Netflix's acquisition of the book
publisher Millarworld, founded by the legendary comic book creator Mark Millar, in
order to adapt company properties into films and TV shows.
 In March, Netflix employees launched a phone playing the original series "Star Trek:
Discovery" into space. This stunt was to celebrate the service now being available in
more than 190 countries around the world.
Netflix also becomes the most nominated service at this year's Primetime and Creative
Arts Emmy Awards, receiving an amazing 112 nominations. The company ties with the
veteran HBO for most wins, taking home 23 accolades for their series, including
"GLOW," "Godless," "Queer Eye" and "Seven Seconds."
Amazon was coming up close behind, however, as the streaming service announced
it had secured the UK rights to broadcast live Premier League football matches and
purchased the global television adaptation rights to The Lord of the Rings, which will air
on Prime Video.

• 2019 sees more awards coming Netflix's way

In 2019, Netflix wins four Academy Awards for Best Director, Best Foreign Language
Film and Best Cinematography for "ROMA," and Best Documentary Short Subject for
"Period. End of Sentence."
They also acquire the intellectual property rights for StoryBots, which was an Emmy,
Annie, and Parents’ Choice award-winning children’s media brand created by Gregg
and Evan Spiridellis. Netflix also releases "Klaus", its first-ever original animated
feature film. 2019 also sees the release of "Inside Bill's Brain", a three-part documentary
covering the life and times of the man behind Microsoft. It is an instant hit. Netflix and
Tesla also confirm that the streaming service will be available on Tesla screens very
soon.
Netflix unveils its first international original films from the Middle East ("Jinn") and
Thailand ("The Stranded"). This year, Netflix wins 27 Primetime and Creative Arts
Emmy Awards for series including "Black Mirror: Bandersnatch," "Ozark," "Queer
Eye", and "When They See Us."
However, not everything is rosy for the company. Inspired by their success, a number
of other companies begin to get in on the act by starting, or expanding, their own
streaming services.
Disney, AT&T, and Apple all launch their own Netflix alternatives in 2019. When
Disney+ made its debut the following year, it meant the end of Disney blockbusters,
such as the Star Wars films, being available on other streaming services.

• What does the future have in store for Netflix?

Many experts believe that the future could look less rosy for Netflix. This is, in part,
because of the explosion in other streaming services launched to challenge Netflix's
seeming dominance. Netflix, to its credit, appears to have predicted the impending threat
several years ago, as it acknowledged that major media conglomerates would start to
pull their content from Netflix to add to their own services.
"This is why, in 2018, Netflix spent $12 billion building its library of original films and
series, an 88% uptick from 2017. And, spend on original content this year is expected
to reach $15 billion. The strategy was to backfill its library with original content to gain
and retain subscribers," according to Forbes. Based on this, it seems Netflix will
continue to focus on its own content going forward, rather than relying on potential
streaming competitors not pulling their content from the platform.
Another option is for Netflix to move to an advertisement-based system in the future.
However, up to this point the company has been staunchly opposed to this. Netflix has
weathered many storms before and it would foolish to believe it is not nimble enough to
do so going forward.
2. Business Model of Netflix
The platform has advanced to streaming technologies that have elevated and improved
Netflix’s overall business structure and revenue. The platform gives viewers the ability to
stream and watch a variety of TV shows, movies, documentaries through its software
applications. Since Netflix converted to a streaming platform, it is the world’s seventh-largest
Internet company by revenue.

Now, let’s have a look at the business model of Netflix.

2.1 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.

2.2 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.
2.3 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 movie
production houses.
• Operate according to the censorship laws. Netflix always promotes and operates within
the boundaries of censorship.
2.4 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.
3. 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.

3.1 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.

3.2 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.

3.3 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.

4. 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.
4.1 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.

4.2 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.

4.3 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.

4.4 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.
4.5 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:

4.5.1 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.

4.5.2 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.

4.5.3 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. This shows just how important engagement is for the brand and how much it
values brand awareness.

These are the digital marketing techniques which the famous OTT platform adopts time to time
to the subscribers’ engagement and retention. Hence it has yielded high returns for their
business.
5. Campaigns of Netflix

5.1 Netflix: The Spoiler Billboard:

Netflix’s new campaign uses spoilers of its most popular shows, including Stranger Things,
Money Heist and Narcos, to promote social distancing amid the COVID-19 crisis, and while
the effort is getting a lot of buzz, it’s a fake.

5.2 FU2016:
To launch season four of the political drama House of Cards, Netflix worked with BBH New
York and built a fake presidential campaign around the show’s lead character Frank
Underwood. The campaign became the top trending topic on Facebook and Twitter during the
debate, and it won a Grand Prix in the Integrated category at Cannes in 2016.

5.3 The Censor’s Cut:

The streaming company wanted to advertise Narcos Mexico in Thailand. Netflix worked with
JWT Bangkok and cut around the offending images within each scene, leaving a clear enough
outline that anyone could still identify what had been removed. The campaign achieved the
opposite effect of what censorship is supposed to do by reaching 34 million people.
6. Key Takeaways from Netflix’s Digital Marketing Strategy

6.1 Intelligent Use of social media

Since social media is a hot favourite in recent years, Netflix’s social media team uses it
intelligently to grab attention and arouse curiosity. Their social media team does not even give
money to sponsored posts. Still, instead, they create original and charming posts to share, which
is getting viral and widespread among social media users.
Thanks to Netflix’s social media strategy within a creative and strategic approach, people are
encouraged to talk about Netflix and the content below posts. Their social media team asks
questions and creates polls stimulating users or fans to continue the casual conversation that
places Netflix in trending topics.

They also let everyone know about what is new on Netflix, and also suggest some TV series
and movies by sharing related posts on their social media accounts.

6.2 Cooperation and Campaigns

With the advances of exclusive campaigns and cooperation agreements with several institutions
and companies, Netflix has the world at its feet. Regarding Netflix’s digital campaigns, we can
say that they meet the members of the target audience wherever they live and whenever they
want.
Netflix collaborates with a great number of companies and applications such as banks,
Snapchat, and Instagram with multi-channel campaigns. For example, if you have an account
on a bank that is a business partner of Netflix, you can get a 50% discount for Netflix. They
create photo effects on Snapchat and Instagram for the users on those applications. They also
use e-mail marketing to promote their content.
You can also try Netflix free for 30 days! After signing up, if you do not enjoy you can cancel
your membership in 30 days without payment. If you would like to continue watching, do
nothing, and your membership will automatically continue until you do not want to remain as
a user. There is no cancellation fee, commitment, or contract.

6.3 Personalization at its best

Their team knows how to keep you engaged on Netflix with a personalized interface. After you
spend some time on Netflix and watch something, they suggest you some more related ones
according to what you have been watching with the help of their data-driven system.
The content on your home page is totally personalized for you. In this way, you can find more
TV series, documentaries, or movies in which you are likely to be interested. In this way,
Netflix offers you a unique user experience on its platform. They even do it on their social
media accounts.
Besides, Netflix provides several suggested lists based on the information about what is the
trend in your country or around the world.

6.4 Humour in advertising

There is no doubt that entertaining posts, photos, videos, and commercial films attract
incredible attention in this era. Instead of gloomy posts or advertisements, the Netflix team
generates original and catchy advertisement content. For example, in 2014, Netflix released a
commercial film on YouTube.

The summary of the commercial is here: The man follows his ex-girlfriend until she reaches to
the airport, and she seems pleased with the idea that he wants to break the ice. However, he
asks her Netflix password, and that was the reason why he followed her all the way.

Netflix team knows that the members share their password with others to avoid monthly
payment and makes fun of this truth on this commercial film. Authenticity and interaction with
the audience are essential part of Netflix’s digital marketing strategy!

They also share funny posts with funny captions on their social media accounts, creating an
overwhelming impression, and those posts are liked and shared by a large number of people.

6.5 Keeping up with the latest

They also know how to catch up with today’s world and the new generation. After the effects
on Instagram and Snapchat became popular, especially among teenagers, Netflix also created
several camera effects associated with their platform and content. They demonstrate the success
of using multiple social media channels at the same time.

So, with its content that appeals to every style and area of interest as well as its intelligent
digital marketing strategies, Netflix seems to be the leading digital entertainment service for a
longer time. Netflix team knows how to get the most out of social media applications and other
social networking platforms to engage its target audience as well as enabling customer
retention.
Segmentation, targeting, positioning in the Marketing strategy
of Netflix
Since 2016 Netflix has stopped segmenting its members by geography and has started treating
its 93 million global members as a single, cohesive audience or a community of members with
similar movie and TV show preferences. Brand refers to these groups as “taste communities”
and there are roughly 1,300 of them. Netflix has always used such clusters which the brand in
its own jargon refers to as “Taste Doppelgangers” around the world which means people across
boundaries having a similar taste for TV show genres.

Netflix uses differentiating targeting strategy in order to increase its loyal/repeat customers
through its subscription-based model.

Positioned as a subscription-based video on demand platform which is easily accessible from

anywhere anytime on the go on mobile/Tablets or on TV, it has rich in experience and broadcast
quality video ultimately meant to fulfill the digital consumption desire of the audiences.

Mission -“ 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 – “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.”

7. Competitive advantage in the Marketing strategy of Netflix

7.1 The simplicity of User Interface

Both the cash and content positioning would be hard of any use if nobody wants to use the
Netflix platform. Perfecting the user experience has been the priority for Netflix over the years.
The simplest interface available on all the platforms such as the smartphone, tablet, laptop or
TV is one of the major distinguishing factors for the brand.

7.2 Content is king

Netflix isn’t throwing together some cut-rate videos and hoping for the best. Billions of dollars
are being spent on content production, bringing top-shelf writers, directors, and actors to
provide with their best of work.

Netflix now is perceived as high-quality entertainment platform similar to what HBO used to
be a few years back in the golden age of premium cable networks.

Netflix wants its original shows through its big production budgets to return it big dividends
over time.
8. BCG Matrix in the Marketing strategy of Netflix
The international streaming segment for Netflix comes under the category of stars. In the
international streaming market, Netflix occupies the highest market share.

Contents that have boosted the subscribers of Netflix are, Stranger things, House of cards, The
Crown, Orange is the new black and 13 reasons why Glow and last but not the least Sacred
Games which was recently launched in India under co-production with Phantom Movies comes
under the star segment for the brand.

Thus, International streaming seems to be the Star for Netflix.

Streaming (U.S.) has been a Cash Cow for the brand while DVD business for the brand seems
to have appeared in the question mark segment as its share has reduced after online subscription
model came into the picture.

9. Distribution strategy in the Marketing strategy of Netflix

While internet seems to be the main source for the brand to reach the customers going ahead
thus optimization across various mediums, Continuous & seamless video streaming, facility of
downloading available on Wi-Fi or mobile network are some of the important features for
higher acceptability of the platform in the market.

Netflix works on providing the highest possible video quality on certain Bandwidth and
superior audiovisuals even in the patchy network. The site is available on the website and
mobile app.

10. Brand equity in the Marketing strategy of Netflix

Netflix has climbed 31 places from the last year to reach 61st place Brand Z’s top 100 list. The
brand has grown 73% in brand value from 2017 to US$20.8 billion.

Over the years Netflix has projected itself as an innovator in the entertainment Industry. Having
a phenomenal brand value of $5.6 billion, the subscribers of the brand world over seems to be
growing exponentially. As a part of the brand extension, Netflix has created an application
named Flixchat which will advertise essential message, logo, name, and packaging.

11. Competitive analysis in the Marketing strategy of Netflix

Being a market initiator Netflix in its initial years hardly faced any rivalry. Times have now
changed with the internet now readily available in the third world countries competition have
increased drastically for the brand over the years with local and regional players targeting with
their original contents.

Major competitors for the brand include:

• Amazon Prime
• Hulu
• YouTube
 • Direct TV
• Sony PlayStation Vue
• HBO Now
• Sling TV
• Hotstar
• TV Channels
• Cinemas
• Piracy (One of the biggest threat for the brand which dearly affects its revenue across
borders)
Most of the above-mentioned rivals play on the niche segments by broadcasting the original
content through their platforms, co-producing with big production houses, aggressively
acquiring films rights etc.

12. Market analysis in the Marketing strategy of Netflix –

With the internet penetration and smartphone market growing exponentially the market seems
to be in a healthy state and holds promising future as there pool of untapped market in the
underdeveloped and developing countries.

Talking about India with the government emphasizing on Digital India and rural penetration of
Internet and data revolution by Jio has resulted in a drastic increase in the watch time per month
by the customers in our country.

In order to remain competitive in an Indian market, Netflix has already co-produced a TV

Series named Sacred Games in partnership with a well-known brand like Phantom Films.

To further penetrate the Indian Market Netflix has planned to expand its portfolio by including
contents in the regional language like Marathi, Punjabi, Tamil, Bengali, and Gujarati.

13. Customer analysis in the Marketing strategy of Netflix

With the Online video platform becoming a trend among the youngsters especially college
going students and the early jobbers as it is easily available on the go and can be streamed on
mobiles and tablets anywhere anytime.

Customers of the company mainly include the ones who are tech-savvy consumers and are in
the age group of 15-40 years and those who prefer watching movies and TV shows on the
internet rather than on TV which has a lot of unwanted advertisements between the broadcast.

14. Promotion Mix in the Marketing strategy of Netflix

The major source of promotion for the brand includes social media websites including
YouTube. Being a globally well-known brand gives them the edge of not going to
intense advertising hence the brand prefers pop-up ads, banners, hoardings and other static ads
on websites.

In the past, Netflix has turned into high ranked celebrities as well in their marketing videos
to boost sales and profits.
Free trial for a month has been one of their promotional strategy to lure or rather acquaint
customers by making them try the service on a trial basis.

The brand also promotes its original TV series through teasers and trailers on YouTube and by
strategically placing Hoardings on Public places to make people aware about their upcoming
productions.
Conclusion
Netflix is a rare example of a company doing everything right. From their branding and content
right down to their business model and product, the company has always excelled at making
smart, strategic 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.