Netflix: Branding like a chameleon.

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Have you ever wondered about the rise of the brand Netflix?

What started as a DVD-delivering service has grown into streaming and creating their own productions such as the hit, “The Crown”.  Netflix‘s humble beginnings started as a simple DVD service whereby a customer could order a DVD online and have it delivered to their house.  It was cheaper and there was no need to walk or drive to the nearest video store. A convenience for the consumer and a success for Netflix. But what has given them their substantial rise was video streaming.  By providing an ever growing selection of titles to be viewed via the internet with a monthly fee, Netflix was able to effectively expand their brand by offering flexibility (watch it anytime and anywhere) and convenience to viewers, all without commercials.

The key to their success was following trends and monitoring what people wanted and what technology could dictate at that moment – good social media marketing.  Netflix has carefully managed what it takes to build a successful online brand by doing the following:

  1. They have mapped out their journey and have taken steps to overcome obstacles by using analytics to understand what their consumers want. Trends are made visible with the data collected.
  2. They promote communication with their consumers. Personal ratings of shows given by consumers is made easy and is valued. Content is highlighted to a consumer within Netflix that is based on their past viewing habits (ie. since you watched this…you may like this).
  3. They know their competitors (i.e. network TV) and are able to keep one step ahead of them. The cost of the monthly fee for Netflix is much cheaper than cable and they produce original content which is largely influenced based on the data they obtain through their analytics.
  4. They know what they are selling – ‘Movie enjoyment made easy‘. They are selling simple, convenient entertainment, period.

Personally, I love Netflix.  The ability to watch a movie, an old television series or an original production all without commercials is well, superb.  Sure I can PVR a show on TV but then I have to skip through the commercials which is a task that takes the fun out of just sitting there and viewing something.  With the automatic loading of the next show on Netflix – no need to use the remote – I can spend an evening sitting on the couch watching a series without moving a finger – pure decadence.

 

 

facebook Has Netflix revolutionized the way we watch entertainment.  What are your thoughts? http://bit.ly/2lbdTgO

twitter-logo Is the success of Netflix the death of cable TV? http://bit.ly/2lbdTgO

 

 

 

Links:

http://www.business2community.com/content-marketing/netflix-power-simplicity-rise-content-marketing-01414243#K5Z3u728EQDBuuM5.97

http://www.forbes.com/sites/petercohan/2013/04/23/how-netflix-reinvented-itself/#6946d9bd74ea

http://www.inc.com/justin-bariso/the-secrets-behind-the-extraordinary-success-of-netflix.html

https://blog.kissmetrics.com/how-netflix-uses-analytics/

http://www.investopedia.com/articles/investing/060815/how-netflix-changing-tv-industry.asp

http://www.backlothelp.netflix.com

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8 thoughts on “Netflix: Branding like a chameleon.

  1. Hi Andrea,

    I didn’t know Netflix started as a DVD delivery service! That is very neat.

    I love Netflix and we no longer have cable or satellite because of Netflix streaming. It is simple, convenient, and always easy to find something good to watch. I think a huge part of their success is how gosh-darn user friendly it is– even my technophobe mother (who is scared to use Facebook) is addicted to it, because they offer all of the British TV shows and movies she loves and previously borrowed from her local library.

    A friend recently told me the only reason she and her husband have cable is because of live sports. If not for sports, she said she would cancel her cable and only watch Netflix. Do you think Netflix will prioritize streaming live events (like sports, elections, award shows) down the road? I imagine that would be the nail in the coffin for network TV…

  2. I love your comment. I feel the same way about Netflix – they offer such great shows, especially ones from Britain. Actually, the only reason we have cable is for the sports. I prefer to play sports but my husband likes to be a couch potato and watch TSN – ugh!

  3. I think Netflix understands and takes advantage of what they call the “Long tail” statistical business model. This model indicates how a business can grow their profit margins via having an online consumer presence rather than a brick and mortar store, thus allowing them to provide more products or services to consumers (Anderson, 2004). It allows them to “discover” what they really want and not just settle for the “today’s picks” or the top 5 trending because the store cannot accommodate more products than physical space will allow (Anderson, 2004). From this model, overtime, a business can make more money via these consumer discoveries than trying to make the most with less product and in less time as trends come and go (Anderson 2004). I think netflix has really done a bang up job of using this model and creating their own branded content with smart analytics to boot.

    Reference:
    Anderson, Chris. (October 1, 2004). The Long Tail. Retrieved from https://www.wired.com/2004/10/tail

  4. I agree. Netflix has been clever to provide their customers with what they want. Using analytics Netflix is able to analyze the who, what, when, why and how. By using the data they are able to upgrade their services and branding which keeps them ahead of their competition.

    Andrea

    ps. thanks for the link!

  5. I definitely agree. Netfilix has completely taken over the way we watch TV. Other then when I lived with my parents, I have not paid for or used any cable. Netflix makes it so cheap and easy to watch TV: on demand and no commercials. They have really come along way, and have done a great job with their Netflix Originals!

  6. I totally agree with the post. Netflix is the new TV or cable. You don’t need to get special packages for channels anymore. Mostly all the new movies and shows are uploaded on the Netflix now a days. I also like that they have new option of downloading the movie or show and then be able to watch it later on without having access to Internet. It is also very cost-friendly as well.

    Great Post!

    Sukhdeep Brar

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