The unstoppable success of Netflix

                              The unstoppable success of Netflix

 

Author: Aarzoo

Date: 28June2023

I would like to share my views about THE UNSTOPPABLE SUCCESS OF NETFLIX.

Despite powerful competitors snapping at its heels, Netflix is a force to be reckoned with in the streaming and entertainment world. The subscription-based streaming service has over 23 million subscribers and reported a revenue of over $8 billion in the first quarter of 2023 according to Statista. Those are some eye-opening numbers to contend with and the brand shows no intention of slowing down. 

You just need to look at its content over the years to see its rising success: Bridgerton, Stranger Things, Downton Abbey, The Crown, Tiger King, Squid Game and Money Heist.  Let’s look at how its marketing strategy has changed over the years and where it stands in the face of powerful rivals like Disney+, Amazon Prime Video, and Apple TV+.

What makes Netflix so successful?

In essence, Netflix’s success is due to the brand’s ability to evolve and the speed at which it does so. It’s this ability to pivot that has enabled its marketing strategy to change and move away from long-held beliefs such as ‘ad spending not resulting in more viewers’. 

Another driving success factor is its technology. Netflix's recommendation engine was created to do one key thing - drive personalization. Its goal is to ensure that subscribers get the content they want and are interested in. This requires the collection of data and the creation of tailored customer journeys for every user. That’s no small feat. 

Another key reason is the content. Netflix invests a huge amount of money in original content. This vision and investment have seen it create hit shows and get nominations and wins for Oscars, Emmys, BAFTAs, SAGs, Golden Globes, and even Grammys.

Netflix awards

How does Netflix compare to its rivals?

When it comes to content and brand authority, Netflix is hard to beat. Its cutting-edge content, commitment to spotlighting foreign language content such as the French hit ‘Call My Agent’, and commitment to UX have kept the platform in the driving seat—but some of its rivals are thriving too.

The content on Disney+ is enviable even by Netflix standards. With Pixar (Toy Story), Marvel (Iron Man and the rest!), Lucasfilm (Star Wars) and Hulu (Keeping Up with the Kardashians) content along with its lower membership price point, Disney+ draws in subscribers to the tune of over 234 million (that’s more than Netflix).

However, according to Nasdaq, subscriber count has become a murky metric. Instead, average revenue per user (ARPU) can be more telling. In Q4 of 2022, Netflix's monthly ARPU stood at $11.76, while Disney+'s domestic ARPU was $5.95. 

Check out our case study ‘The Enduring Innovation and Magic of Disney’ for an in-depth look at that brand’s full marketing picture. 

Apple TV+ is another streaming service gaining ground with an estimated 25 million paid subscribers and 50 million users that get the platform free with the purchase of an Apple device (as of March 2022). ‘The Morning Show’ featuring Jennifer Aniston and Reece Witherspoon proved a huge hit for the platform. However, with only around 80 series, movies, and documentaries, it pales in comparison to Netflix’s library of over 5000 items. 

Amazon Prime Video is well placed to capture a share of the streaming market seeing as its parent company Amazon is one of the most recognizable ecommerce brands in the world. The video platform has 190 million subscribers worldwide with successful original content such as Fleabag (a co-production with the BBC) and The Marvelous Mrs. Maisel. However, the platform has been criticized for a lot of its content being user-generated and some of it questionable according to the Wall Street Journal. 

Other competitors are YouTube TV, Paramount+, Sling, and HBO Max.

Netflix competitors

In 2021 Netflix launched a ‘Top 10 on Netflix’ website, a place to showcase its most popular content broken down into global and country-specific lists. The metric used for these lists is ‘engagement as measured by hours viewed’ as the company believes it’s “a strong indicator of a title’s popularity, as well as overall member satisfaction”.

Netflix: Wrap-up

There’s no doubt that streaming is popular, but it’s also a very competitive space. While Netflix currently has the edge, the brand knows it needs to keep innovating to keep that coveted position. 

Let’s recap the key reasons Netflix is such a successful brand. It:

*Uses data to understand customers and inform content creation.

*Taps into trends and social media conversations.

*Is not afraid to use humor in its messaging.

*When a show becomes a hit, the brand capitalizes on it.

*Encourages customer engagement.

*Listens to feedback and works on solutions.

Combines traditional and digital marketing tactics in interesting ways.

Sets metrics and constantly tracks performance.

There’s little doubt that Netflix will keep growing and evolving based on internal and external factors. The crucial factor in its success is that it wants to keep getting better and is prepared to do the work to get there.