Netflix Inc. is among the world’s leading entertainment companies and gives access to TV series, mobile games, documentaries as well as feature films across a wide range of languages and genres. Netflix was started in 1997 as an online movie rental business but was located only in the United States. The Netflix Company has, however, grown to accommodate approximately 220 million paid memberships spread across more than 190 countries (“About Netflix,” 2022). The company’s growth strategy took the direction of exponential globalization which is an expansion cycle aimed at increasing speed to an increased number of countries and customers. Its members can enjoy watching as much as they would desire anywhere or at any time on any screen connected to the internet.
The company takes position 8 because it leads the streaming industry because it dominates the market share, has the largest number of customers. The digital strategy is based on utilizing technology to improve a company’s performance. The company started with DVD using mail service and has advanced to be among the top worldwide companies offering video streaming services. This is because it was among the first companies to recognize the possibility of video streaming technology, and in 2007, it started to shift or move to a video-on-demand subscription model. Moreover, in only 12 years, the company’s revenue has grown to 25 billion, which was previously at 1.36 billion. Additionally, the company’s number of subscribers increased substantially in a similar trend to its revenue which increased from 22 million in 2011 and now stands at 214 million in 2021 (“Topic: Netflix,” 2022). However, the company has had a difficult journey in realizing the success it has today.
The company was able to revolutionize how people could access and engage the content they desired without the company having to physically deliver them as DVDs, as well as becoming a universal entertainment provider. This meant that the company had to employ a digital business strategy in innovation to ensure it became the most reliable, the easiest, and fastest compared to its competitors (Senthilkumar et al., 2017). As a result, the company’s streaming service was born. This meant that a lot of work had to be put into programming languages, including Java, and Python. Moreover, Netflix ensured its customers could get their services easily during the pandemic using binge-watching.
The company had to invest in big data and analytics that ensured they could get the customers’ right preferences even in their local regions. This meant that its customers could get their shows in the local languages using subtitles and dubbing as a tools to translate contents into foreign languages, which meant adding more languages. This was to make sure that their content would capture local as well as universal audiences and that development of direct and digital content distribution could be achieved (Aguiar & Waldfogel, 2017). This helped Netflix reap greatly from local content investments.
Netflix invested in personalizing algorithms that led to the realization of a universal content library and diversifying its device range, payment partnerships, and operations. This follows the fact that some regions in the globe use mobile as the main way to access the internet, mainly in nations with developing economies (Onyusheva & Baker, 2021). Moreover, the company also made an effort to create a website and movie personalization, which informed their members to consider the website a vital part of the Netflix accounts (Alumni, 2018). As a result, the digitalization of the company’s market made sure that it continued to flourish as the number of customers increased substantially (Ustundag & Cevikcan, 2018). This is because the technology was able to offer better service delivery as well as improve customer happiness and satisfaction.
Additionally, the company decided to improve its mobile experience by ensuring the sign-ups, credentials, and authentication, ensuring cellular networks had streamlining efficiency as well as user interface were included. This secured the members’ accounts, thereby increasing trust in the company, which made it grow even more. Additionally, the company built associations with TV and mobile operators, device makers as well as internet service providers. The company was able to link with cable and cell phone operators to ensure that its content is available on the devices as part of their video-on-demand existing offerings. A good example is Vodafone, which included a button reserved on its remote controls for Netflix when it launched a TV service for its clients in Ireland (Onyusheva & Baker, 2021). The company was also able to acquire partnerships with Telefonica with KDDI in Japan as well as Telefonica in Latin America and Spain.
Additionally, the company decided to improve its mobile experience by ensuring the sign-ups, credentials, and authentication, ensuring cellular networks had streamlining efficiency as well as user interface were included. This secured the members’ accounts, thereby increasing trust in the company, which made it grow even more. Additionally, the company built associations with TV and mobile operators, device makers as well as internet service providers. The company was able to link with cable and cell phone operators to ensure that its content is available on the devices as part of their video-on-demand existing offerings. A good example is Vodafone, which included a button reserved on its remote controls for Netflix when it launched a TV service for its clients in Ireland (Onyusheva & Baker, 2021). The company was also able to acquire partnerships with Telefonica with KDDI in Japan as well as Telefonica in Latin America and Spain.
Netflix is also able to market its services by connecting with its customers or clients through social media. Social media websites or platforms provide a means to create audience engagement as well as the chance to introduce a new series or content to a separate number of followers that are registered (Hacioglu, 2020). Social media is an important tool in presenting the services offered, especially for a company such as Netflix, since a commercial video uploaded on a social media platform can go viral and attain thousands or millions of possible viewers, which promotes the company’s services (Gomez & Quevedo, 2018). One of the social media platforms that Netflix uses is Twitter which helps create the expectation for live events or even storylines posted before, during, and after series have been released. An example how of social media was used to successfully promote a particular program is the use of a Twitter campaign using the hashtag #AskOrange which was launched 8 days before the release of the opening of a new season of the Orange is the new black series.
Additionally, Netflix uses publications like The New York Times as well as Wired, The Atlantic to place traditional advertisements. Moreover, social media has a promotional utility that enables companies like Netflix to boost their content awareness which can be achieved by encouraging their viewers to share, retweet, and like the uploaded content (Gomez & Quevedo, 2018). Additionally, social media offers an affective perspective that enables the measurement of audience engagement which can be done by getting followers into the conversations and then requesting them to tweet on specific topics.
Others include patent grants, Netflix’s digital products, trademarks, reputation, and social image of the company among members, which are all considered intangible resources (“About Netflix,” 2022). Netflix Inc. is very good at adapting, which has been shown by its capability to react and grow with changes in IT and attempts or makes an effort to simplify and promote digital content access. Moreover, the company is customer-oriented, which helps it hold its lead in the market share. In addition, the company has used its limitations to crate defining features that differentiate it from other platforms (Aguiar & Waldfogel, 2017). For example, the company has successfully transformed the challenge faced in promoting a series’ new season by offering them at one time rather than when they are paced over several months.
This is because its business structure incorporates a digital business strategy with the ability to use innovation to expand its market by using technology to advance and distribute its services. Additionally, the company can cope with emerging technology that helps satisfy the customers’ preferences.
References
About Netflix – Homepage. About Netflix. (2022). Web.
Aguiar, L., & Waldfogel, J. (2017). Netflix: Global hegemon or facilitator of frictionless digital trade?Journal of Cultural Economics, 42(3), 419-445. Web.
Alumni, G. (2018). The Origin of Netflix’s Success – Digital Innovation and Transformation. Digital Innovation and Transformation. Web.
Gomez, E., & Quevedo, J. (2018). Connecting with audiences in new markets: Netflix´s Twitter strategy in Spain. Journal of Media Business Studies, 15(2), 127-146. Web.
Hacioglu, U. (2020). Digital business strategies in blockchain ecosystems. Springer.
Onyusheva, I., & Baker, A. (2021). Netflix: A case study on international business strategy development. The Euraseans: Journal on Global Socio-Economic Dynamics, 6(31), 40-52. Web.
Senthilkumar, M., Aravinth, M., Gokulraj, G., & Iyyanar, M. (2017). A trend setting integrated digital marketing strategies for business promotions.SSRN Electronic Journal, 1-11. Web.
Topic: Netflix. Statista. (2022). Web.
Ustundag, A., & Cevikcan, E. (2018). Industry 4.0: Managing the Digital Transformation.