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Netflix Marketing Strategy 2023 – Business Model Canvas, Partners and Activities

سيوك تشين بواسطة سيوك تشين
يناير 4, 2023
في التسويق الرقمي
وقت القراءة: 17 دقيقة للقراءة
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Netflix Marketing Strategy
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الإعلانات

Netflix Marketing Strategy is something all Digital Marketers want to learn about, the way they grew their services to a billion-dollar company, has lots of lessons that we can learn.

جدول المحتويات

  • Introduction to Netflix and Netflix Marketing Strategy for 2023
  • Business Model Canvas of Netflix
  • Netflix Customer Relationship
  • Key Resources of Netflix
  • Netflix Cost Structure – Paid Subscriptions
  • Netflix Revenue (Streams/Inflows and Outflows)
  • How Netflix makes money?
  • استنتاج

Introduction to Netflix and Netflix Marketing Strategy for 2023

Netflix is one of the most successful streaming services of all time. Netflix, Inc. started back in 1998 which used to mail the discs of ألعاب الفيديو, shows, and movies through postal mail.

الإعلانات

It is indeed one of the most brilliant startups, which changed itself with the technological changes, Netflix keeps working on their Business Model. They went from Disks to have a website filled with thousands of movies to watch.

Today, they’re one of the leading premium streaming services that have enhanced Business structure and revenue. The platform allows the users to stream a number of movies, documentaries, and TV Shows, with the help of websites and apps.

The day Netflix came to streaming online, it became the seventh-largest internet company (by revenue) globally. The following is a compilation that shows the specification of the Netflix Business canvas model and its major activities.

netflix 15 percent total internet traffic

Business Model Canvas of Netflix

Key Partners

Netflix key partners are 35+ that are mostly media businesses. Netflix caters millions of genres for their subscribers to watch online.

  • Netflix has made an alliance with Smart TV manufacturers LG and Sony to explore new markets.
  • Wii, بلاي ستيشن, and اكس بوكس are Netflix’s partners in the gaming segment. Netflix partnered with these companies to bring interactive watching experience, such as Bandersnatch.
  • Dish, Tivo, and other major TV companies are in partnership with Netflix.
  • One of the major partnerships was with Android (Google), Apple, and Microsoft to bring Apps to its users to watch Netflix.
  • Big data providers, Amazon and Google are also the partners of Netflix. Amazon also helped the streaming service to promote its subscription and listing.

Netflix Value Propositions

Netflix marketing strategy for 2022 aims and methods to provide top-notch customer service by executing valuable propositions. Here are a few key Netflix propositions;

  • Users can stream 24-7 without seeing any ads.
  • Steaming of high-definition movies and videos.
  • Users can stream content anywhere, from TV to Smartphones to Consoles.
  • New users will get 1 month of Netflix for free!
  • You can cancel anytime, if you cancel 15 days before, you will get a refund.
  • Users will receive recommendations for new things to watch through the Netflix Algorithm.
  • Availability to toggle notifications on Netflix.
  • Super admin user can control the other user profiles.
  • Netflix account sharing allows users to share account as many as 5 people at a time.
how much netflix people are watching

Netflix Key Activities

  • They keep hiring and retiring the software and tech experts.
  • Their Apps (TV and Mobile) and the website are always up to date.
  • It acquires, produces, and license Netflix’s original content to add to its video library.
  • Strategize new pricing strategy and subscription plans to target new customer segments with affordability.
  • Developing a roadmap with new offers to enter a new target market.
  • Keeping “Relevant Recommendations” in mind to retain the customer.
  • Building and maintaining the partnerships with Studios to keep their platform filled with interesting things to watch.
  • Complying with the region laws, showing filtering content in regions according to what is allowed or what isn’t in that specific region.
netflix growth coronavirus 2020 Netflix Marketing Strategy

Netflix Customer Segments

  • Netflix has created a platform that offers different kinds of genres for its subscribers to chose from. Their TV Series, Movies and Documentaries are made for everyone according to the rating.
  • Netflix has two segments, Adults Section and Kids section. While in Adults you will have a number of movies and TV shows without any restriction while in Kids’ section you will only find Family-friendly content.
netflix growth chart 2020

Netflix Customer Relationship

Netflix Gift Cards

Subscribers get promotional Gift Card Coupons, some get codes while some get a one-month free trial. And some get them on their birthdays.

وسائل التواصل الاجتماعي

Netflix advertises its services and deals on different social media channels to get a high engagement ratio, which leads to new sign-ups. Social Media advertising is the core of Netflix marketing strategy.

Facebook and Instagram are their major channels of Advertising. Because it has a high number of millennials.

Online Chat

Subscribers, even non-subscribers, can talk to Netflix’s representative on their Live Chat feature to ask queries or pre-sales questions.

Top-Notch Customer Service

Netflix’s major focus is a satisfied customer so they tap their customer’s via website live chat, phone, and emails to solve their problem.

Ease of Use

The friendliness of UI/UX of Netflix makes it easier for a person to easily navigate through the website and apps, and the easier to use, the more content people will be able to search and watch and the more they will watch the longer they’re going to stay.

Key Resources of Netflix

Netflix Algorithm

  • Artificial Intelligence helps Netflix in showing the user what they have liked or watched previously, they show them highly relevant recommendations, which keeps them hooked to the platform.
  • If Netflix plans to release a new TV series or a Movie that is according to the likings of the user, that user will get an automated Email Newsletter for it.

Software Developers

  • Netflix’s Software developers keep on innovating.
  • The constant work on UI/UX to help users understand the platform better.

Netflix Cost Structure – Paid Subscriptions

  • Majorly purchasing TV shows and Movie rights.
  • Cost to produce new movies.
  • Cost of using Artificial Intelligence and Research and Development at Netflix to improve algorithem.10% of the subscription cost for maintenance.
  • Paid connection deal with Comcast (Netflix’s official Internet Service Provider) to stream Netflix content at a higher speed.
  • Datacenter maintenance costs to bring seamless streaming speed.
  • Employee salary distribution that includes Customer Services, Executives, and Engineers.
netflix subscribers competitive comparison chart

Netflix Revenue (Streams/Inflows and Outflows)

Netflix hadn’t launched their streaming service until 2007, which later boosted when they introduced subscription plans, and the rise of the internet back in 2007 helped them very much.

  • Monthly subscriptions fees have three tiers in US market (Basic for $8.99/monthly, Standard for $12.99/monthly and Premium for $15.99/montly)
  • Netflix is available in every country, all around the world.
  • A great number of users upgrade their subscription to Premium Plan after trying out the Basic plan.
  • Netflix’s own produced TV Shows such as Stranger Things, Dark, and House of Cards, etc are the major sources of their revenue.
netflix password sharing netflix marketing strategy

How Netflix makes money?

When Netflix started they only offered a vast variety of TV Shows and Movies through physically shipping DVDs physically. In 2007, they converted their physical business into an online streaming service. Back in 2007, Netflix had the net worth of $997 million, which is now 400% more than what they were back in 2007.

Netflix Partnerships

  • One of the major strategies that Netflix is using is partnering up with the producers, writers, animators, and filmmakers to grab the legal rights to stream their content on their platform.
  • To keep Netflix streaming alive, Netflix has to have a good partnership with the content creators and keep up with their Internet Service Provider, Comcast.

Subscription-based Business Model

  • Netflix has over 125 million paid subscribers from 190 countries.
  • In 2020, Netflix is generating approximately $15 billion USD annually with a total figure of 125 million paid subscribers from the United States and internationally.

Netflix Technology

  • Netflix is using Monolithic Architecture to support its Technology. And by the use of the same technology, they’re innovating their streaming capabilities.

استنتاج

Back in 2000, Blockbuster was offered by Netflix to purchase their company for $50 Million, but Blockbuster refused this deal.

In 2022, Netflix has a net worth of $195 billion USD in market cap value. Netflix always focused on how to promote their services on Media to get more subscribers.

Netflix has competitors like HBO Max, Disney Plus, Amazon Prime, and آبل but none of these are nowhere near to what Netflix is offering to their customers.

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