Founded in 1997, Netflix provides users with a plethora of movies and TV shows via a subscription based streaming service. From 21.5 million subscribers in 2011, the business expanded to having 209 million subscribers in 2021.
So what has contributed to this massive growth and large market capitalisation? Let’s take a look at some ways Netflix does its marketing:
1. Alliances
Netflix has established key alliances with reputable smart TV brands like LG, Sony and Samsung to bring high quality content (4K) and to access emerging markets to generate greater market capitalisation.
One example would be the “netflix button” on your LG TV remotes. In 2018, Netflix announced its partnership with LG U+, a major telecommunication service provider in Korea. The partnership gives purchasers of the TV the ability to access netflix easily with a push of a button from the TV remote.
Additionally, the partnership was extended to existing subscribers of U+TV who had their set-top boxes automatically upgraded, giving them access to netflix as well as the option of paying for netflix subscriptions through LG U+.
2. Value proposition
Netflix has very cleverly crafted its value proposition as a streaming service that is available 24/7 and gives customers an undisturbed experience with no advertisements.
A huge array of content is available for users from various demographics. 4220+ movies and more than 1980 TV shows catering to an audience of various age groups and demographics. From Korean dramas to children TV shows, Netflix has it all.
The original productions of Netflix are also increasingly becoming a hit having decent success at Academy awards. Award winning films include, “Roma”, “The Irishman”, “Marriage story” to name a few.
3. Customer retention
Netflix has seen good customer retention numbers over the years. 83% of its subscribers were retained after one month and 72% customer retention rate after 6 months (higher than Disney+ by 4%).
One way in which Netflix has good customer retention numbers is through the use of Artificial Intelligence and Machine learning software. The software screens through hundreds of thumbnails from a movie or TV show and presents those which gain more attention from users.
Another way Netflix relies on AI is through the recommendations offered to users. The software is able to understand your viewing habits and hobbies, thereby improving recommendations to you.
4. Customer engagement
Netflix invests substantial amounts of resources into their social media marketing efforts to engage with their target audience. On its Facebook and Instagram, the firm regularly posts snippets from latest movies and shows, increasing its publicity and luring in more viewers.
Its Twitter account has been regarded as one that engages well with its audience through memes from movies which has caught the attention of many through large amounts of shares and retweets.
Additionally, Netflix has accounts for different regions around the world, allowing the business to engage well across different geographical locations.
Sources:
https://www.businessofapps.com/data/netflix-statistics/
https://about.netflix.com/en/news/netflix-joins-hands-with-lg-u-in-korea
https://www.justwatch.com/uk/provider/netflix
https://www.simplilearn.com/how-netflix-uses-ai-data-science-and-ml-article
https://www.socialinsider.io/blog/netflix-social-media-strategy/