The idea of a streaming application is not new, perhaps there are multiple other applications with the same concept but the execution and global reach are something that differentiates Netflix. The success of Netflix can be attributed to multiple reasons which will be elaborated upon in this article. You might take one, two, or all for your own business. Because, believe it or not, Netflix marketing strategies make Netflix a game changer in the industry, and Netflix is here to stay and slay.
What is Netflix and what are its Origins?
It was founded on August 29, 1997, in Scotts Valley, California. The company’s primary business is a subscription-based streaming service offering online streaming from a library of films and television series, including those produced in-house.
As the story continues, the idea for Netflix was created when two different things happened in the life of Reed Hastings, the CEO. The first was when he was charged $40 for a late return of a movie rental Apollo13, and the second was when he went on a long business trip and realized there was nothing good to watch on TV.
This gave him the idea to create a service that would eliminate late fees and allow people to watch movies whenever they want.
And now, as of 2021, Netflix has 193 million subscribers. With over two billion hours of content being watched every single day.
How did Netflix Grow So Quickly?
Netflix’s initial success came from its low monthly price of $7.99 and its ability to be played on multiple devices including TV, laptops, tablets, and smartphones. The company grew quickly in the early 2000s by mailing out DVDs to subscribers and then shifted its entire business to streaming in 2007.
Netflix has always been an early adopter of new technologies. For example, they were one of the first companies to offer 4K content and they’re currently working on 8K content. They’ve also invested heavily in virtual reality and plan to release a VR app this year.
How does Netflix keep its subscribers?
The key to any successful subscription-based business is retention, and Netflix has always been good at retaining its subscribers. The company’s churn rate (the percentage of people who cancel their subscription) is only 3%.
There are a few things that Netflix does to keep its subscribers.
- The company offers a free trial so that people can try the service before they commit to it.
- Netflix is always releasing new content so there’s always something new to watch.
- It offers different membership tiers so that people can choose how much they want to spend.
- Finally, multiple people can use a single account, which makes it more affordable for families.
However, it is easy to say than done. There were several instances when people backlashes Netflix for canceling their popular shows while renewing others, and the company took a beating on social media. What makes Netflix so strong is that it does not seem to care about the short-term negative publicity and instead focuses on the long-term goal of providing its subscribers with the best possible experience.
What are Netflix’s marketing strategies?
There are tons of strategies you can take note of, however, we have compiled the top 6 that are most commonly used by Netflix.
Netflix Marketing Strategies #A. Produce your content
Netflix doesn’t do traditional advertising as most companies do. Instead, the company relies on word-of-mouth and social media to promote its service.
And when considering the quality of their original productions like Stranger Things, Narcos, and The Crown, it is not hard to see why. Netflix has been investing in original content since 2013 and it has paid off handsomely. The company now has over 700 original titles, and by producing its content, Netflix can control the entire experience from start to finish.
Netflix Marketing Strategies #B. Focus on the global market
Netflix is available in 190 countries and has plans to continue expanding. The company’s focus on the global market has been a key driver of its growth.
In fact, international subscribers now make up over 60% of Netflix’s total subscriber base.
Netflix Marketing Strategies #C. Offer a free trial
As mentioned earlier, Netflix offers a free trial so that people can try the service before they commit to it.
This is not something new for mobile applications, mainly streaming channels, however, Netflix’s free trial lasts for a whole month, which is much longer than most other companies.
Netflix Marketing Strategies #D. Price the service at a low monthly rate
Netflix’s low monthly price of $7.99 is one of the key factors that has helped the company grow so quickly. And what’s better when multiple people can use a single account.
Netflix Marketing Strategies #E. Use social media to your advantage
Netflix has always been good at using social media to its advantage. The company uses social media to promote its original content, and it also uses it to connect with its subscribers.
For example, when Stranger Things was released, Netflix posted a video on YouTube asking people to “turn the upside-down” if they had seen the show.
Netflix Marketing Strategies #F. Create a sense of urgency
Netflix always creates a sense of urgency around its original content. For example, when Narcos was released, Netflix posted a message on Twitter saying ” binge before they take us down.”
By creating a sense of urgency, Netflix encourages people to watch its content as soon as it is released.
All of these strategies have helped Netflix become the successful streaming application that it is today. The company has over 130 million subscribers and is continuing to grow. If you’re not already a subscriber, maybe now is the time to try out the service. Of course, you can always start with a free trial.
What are some of Netflix’s most popular marketing campaigns?
Netflix doesn’t do a lot of traditional advertising, but it does invest heavily in content marketing. And there are a lot of campaigns that clicked just right for the company!
Netflix Campaign done right #1 “Netflix Is A Joke” campaign which features ads with comedians talking about how Netflix has changed the comedy industry.
Netflix Campaign done right #2 The “Skip Intro” campaign encourages people to watch TV shows without the intro.
Netflix Campaign done right #3 The “Netflix Binge Watchers Club” campaign encourages people to watch multiple episodes of a show in one sitting.
Netflix Campaign done right #4 The “Netflix And Chills” campaign which encourages people to watch horror movies on Netflix.
Netflix Campaign done right #5 The “Stranger Things Halloween” campaign encouraged people to dress up as their favorite characters from the show.
These are just a few of the most successful Netflix marketing strategies used in different campaigns. The company is always coming up with new and innovative ways to market its service. And that’s one of the reasons why Netflix is so successful.
What are some of the challenges that Netflix faces?
As popular as Netflix is, the company does face some challenges.
- Netflix is heavily dependent on internet providers. And if there’s one thing that we’ve learned from the past, it’s that Internet Service Providers (ISPs) are not always reliable.
- Netflix is also facing a lot of competition from other streaming services such as Amazon Prime, Hulu, and Disney+. And let’s not forget about the traditional cable companies that are starting to offer their streaming services.
- Another challenge that Netflix is facing is the fact that people are spending more time streaming content on their mobile devices. This means that Netflix has to invest more money in developing its mobile app.
- And last but not least, Netflix is facing the challenge of government regulation. In some countries, Netflix is required to obtain a license to stream content.
- Despite all of these challenges, Netflix is still going strong. The company has over 130 million subscribers and is continuing to grow, thanks to its effective marketing strategies.
Also, despite these basic challenges, there are always people who hate your services just because they can’t stop loving them. This plays out when a person who binge-watches constantly because they can’t get enough of the content, and then two weeks later want to cancel their membership because “they want to get their life back.” But as with any service or product, people are going to find problems with it. The key is to always listen to your customers and try to improve the service.
Top 10 Tips to take from Netflix for Mobile Application Owners
If you are the owner of a mobile application, you will need to market your app effectively to be successful. Here are 10 tips that you can take from Netflix’s marketing playbook:
Netflix Marketing Strategies #1. Invest in content marketing or even play with it a little
What we mean to say is that you should consider spending a little more on your content, or better yet – produce it in-house. Not only does this ensure that your content is original, but you can also keep track of the trends and study the competition more easily.
Netflix Marketing Strategies #2. Foster a community around your app
Encourage user-generated content and give users a platform to connect with each other. This will make them feel more invested in your app and more likely to stick around.
Who doesn’t like an app that will allow them to connect with other people who share their interests?
Netflix Marketing Strategies #3. Keep your app updated and add new features regularly
If you want people to keep using your app, you need to give them a reason to do so. Regular updates are a great way to keep people interested. And if you can manage to add new and useful features regularly, even better!
Netflix Marketing Strategies #4. Make sure your app is available on as many platforms as possible
The more people you can reach, the better. So, if your app is only available on one platform, you’re missing out on a lot of potential users.
Netflix Marketing Strategies #5. Use social media to your advantage
Social media is a great way to connect with potential and current users. Use it to promote your app and engage with your audience.
Netflix Marketing Strategies #6. Invest in paid advertising
Paid advertising can be a great way to reach new users, especially if you’re targeting a specific audience.
Netflix Marketing Strategies #7. Offer discounts and special offers
Who doesn’t love a good deal? Offering discounts and special offers is a great way to attract new users and keep existing ones coming back for more.
Netflix Marketing Strategies #8. Make it easy for people to leave reviews
Don’t make it difficult for people to leave reviews, or they’re likely to just move on to the next app. Make it easy for them to leave a review, and you’re more likely to get honest feedback.
Netflix Marketing Strategies #9. Pay attention to your analytics
Your analytics can tell you a lot about how people are using your app and what they’re looking for. Use this information to improve your app and make it more user-friendly.
Netflix Marketing Strategies #10. Always be ready to evolve
The mobile market is constantly changing, so you need to be prepared to change with it. If you’re not willing to evolve, your app will quickly become outdated and users will move on to something new.
The Future Of Netflix
The future looks bright for Netflix. The company is continuing to grow and expand its service. It is also working on creating its content, which will help it better compete with other streaming services.
In addition, Netflix is also exploring new ways to market its service. But the question is, how long can Netflix keep up its current growth?
Only time will tell. But one thing is for sure, Netflix is a force to be reckoned with and it’s not going anywhere anytime soon.
Whether you love Netflix or not, Netflix stays in the top 10 apps on both Android and iOS. They have a lot to teach us when it comes to marketing a mobile app effectively. By taking some tips from Netflix’s playbook, you can increase your chances of success in the mobile market.
And if you want to be the next Netflix, or perhaps even better, you need an agency that will help you every step of the way, from app development to marketing. At 12 Channels, we have the experience and expertise to help you succeed. Contact us today to learn more.
Do you have any other tips to share? Let us know in the comments!