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This is to certify that the research paper titled " MARKETING STRATEGY
AND MARKETING ENVIRONMENT: A Case Study Based On Netflix " is a
genuine record of work completed by Muskaan Shama, final year student of
BBA - B, Goswami Ganesh Dutta Sanatan Dharma College in fulfilment of the
requirement for the degree of Bachelors in Business Administration to be
submitted by May 20, 2022.
Place: Chandigarh
Date: 20th May 2022
Dr. Sheetal Sharma
I, Muskaan Sharma, hereby declare that the project report titled
Study Based On Netflix" submitted in partial fulfillment of the requirements
for the degree of Bachelors in Business Administration to Goswami Ganesh
Dutta Sanatan Dharma College is my original work and has not been
submitted for the award of any other degree or diploma.
Muskaan Sharma
A project is a fruit of experience and it goes a long way to modelling a
person and gaining a new insight in the field of research. In this rewarding
experience, one recognizes help and support rendered by a kind heart
behind its success.
I would like to express my special thanks to our mentor Dr. Sheetal Sharma
who gave me the golden opportunity to do the research work on the topic
The success and final outcome of this assignment required a lot of guidance
from many people and I am extremely fortunate to have got this completion of
our assignment work.
I would like to thank our parents who helped us financially and mentally
to complete our assignment.
Lastly I would thank Almighty without whose grace it would have been
impossible for us to accomplish the task.
Muskaan Sharma
Page No.
Background of the study
Netflix in full Netflix, Inc. is an American media streaming and video rental firm started in
1997 by Reed Hastings and Marc Randolph. It also participates in the development of
original programming. Los Gatos, California is home to the company's headquarters.
Netflix started selling an online subscription service on the Internet in 1999. Subscribers
selected movies and television shows via Netflix's website, and the shows were then shipped
to them in the form of DVDs, along with pre-paid return envelopes, from one of more than
100 distribution centres. Although consumers could rent as many movies as they wanted for
a set monthly charge, the amount of DVDs they may have in their possession at any given
time was limited by their membership plans.
Netflix is the world‟s leading subscription-based Internet television network, using the OTT
(Over-the-Top) technology to provide custom tailored on-demand streaming media services
to over 40 million customers in more than 40 countries worldwide. Established back in 1997,
the company with 2045 full-time employees headquartered in Los Gatos, California achieved
annual revenue equal to 3, 61 billion dollars for 2012. Its huge success started back in
September 1999, when Netflix introduced the monthly subscription concept 2 starting its
business model based on flat-fee unlimited rentals without due dates, late fees, shipping and
handling fees, or per title rental fees. Three years later in May 2002 Netflix made its initial
public offering of 5500000 shares at a price 15$ each. Later, in 2006 (Netflix Prize) was
launched – a campaign promising $1 million to the customer who can achieve certain
accuracy goals in recommending films based on personal preferences, thus emphasising the
personalization and evaluation of the content as key features distinguishing their own vision
about the future of the TV industry.
One year later streaming was introduced as a more convenient way of distributing the
content, allowing members to instantly watch movies and TV shows on their personal
computers without the need to locally store the data. The network became even more open
one year later when it was introduced to a wider variety of platforms like the Xbox 360, Bluray disc players, TV set- top boxes and Apple computers, thus embedding the openness
concept as a key factor of its expansion strategy. Consequently the PS3, Interconnected
TVs, Nintendo Wii, iPad, iPod and iPhone families of devices were integrated with Netflix
allowing its content to be accessed conveniently from a larger number of platforms and
devices, resulting in customer base enhancement to 2 million members in 2010.
Following the pandemic, the OTT sector in India saw a tremendous increase in viewing.
According to a survey issued by RBSA Advisor, India's OTT industry is predicted to reach a
record-breaking $12.5 billion by 2021, up from $1.5 billion.The next growth wave will come
from tier II, III, and IV cities, as well as the Indian language speaking population, to reach this
goal.OTT platforms including Disney+ Hotstar, Netflix, Amazon Prime Video, SonyLiv, ZEE5,
MXPlayer, Voot, and Eros Now have seen massive growth throughout the COVID 19 Era. A
traffic level analysis to determine how each of these OTT players performs in terms of:-
Visibility of Market Share (Overall as well as organic traffic).
Top 3 OTTs - Organic Traffic Drivers, Business Category Segmentation, and Brand
Query Analysis
Click Share Estimation Report – Generic
Category Organic Share of Voice Report – Generic Category.
Let's take a closer look at each of these main areas.
Overall Market Share: To see how each of the OTT players performs in terms of traffic
visibility, I looked at the total traffic acquired by each OTT and computed their percent
contribution to the total traffic.With 42.13 percent overall visibility, Disney+ Hotstar leads the
OTT arena, followed by Netflix (15.62 percent) and MX Player (12.18 percent) in a distant
second and third position, respectively.
Netflix Inc. (Netflix) is an internet entertainment company that allows users to watch movies
and television programmes. The company delivers original programmes, documentaries, and
feature films via internet subscription on TV, computer, and mobile devices. In the United
States, it offers a DVD-by-mail service. Netflix also has its own movie catalogue, which users
can access via mobile apps, Netflix-enabled devices, or PCs and watch instantaneously on
their televisions. Its services include content licencing, acquisition, and production, as well as
original programmes. Multichannel video programming distributors, streaming entertainment
providers, consumer electronics manufacturers, mobile operators, and internet service
providers are among the marketing partners who help the company market and promote its
service. It operates in the Americas, EMEA, and APAC regions. Netflix is based in Los
Gatos, California, in the United States.
Products and Services
1. Services Brands Distribution and Rental Services of Movie DVDs
2. Netflix Online Streaming Services
3. Mobile Games
The netflix growth problem
1)For the first time in a decade, Netflix's total subscriber base is declining.
2)Competitors have brought compelling services to market, and the streaming video pioneer
hasn't been able to keep up.
3)The problem is that, aside from hiking monthly subscription costs, Netflix has no other
options for increasing revenue until it makes significant changes to its business model.
The majority of the discussion on Netflix's (NFLX 2.07%) earnings report this week has been
on the fact that the streaming giant lost members for the first time in more than a decade.
During that time, the company's total membership fell by 200,000, and management expects
another 2 million to leave in the current quarter.
These figures stand in sharp contrast to Netflix's two-decade-long history of phenomenal
growth. However, now that the company has surpassed market saturation with 222 million
subscribers, it's worth considering how it can continue to grow in the long run.
Netflix may have an issue.
The video streaming market is becoming increasingly congested. Because the entry hurdle is
low, old media entertainment businesses such as HBO, Fox 21st Century, and Disney, which
already have content and can create content, will benefit the most. They have begun or are
about to begin offering video streaming services. Currently, all providers have the same
business model, which is a direct consumer subscription (either monthly or annually) with no
cost to the user for switching.The cost of a subscription ranges from $8 to $14. As a result,
there isn't much of a price difference between suppliers.
To keep and attract users, businesses will need to provide popular content.As a result, there
is tremendous competition among corporations to get popular licensed content.With 100
million subscribers, Amazon Prime is a formidable competitor to Netflix. In addition, Amazon
($5 billion) and Netflix ($8 billion) are the top content spenders in 2018 . Aside from
Amazon, there is no big revenue-generating player in the video streaming industry (as of
today). YouTube Premium has a large audience and generates content on its own.
However, two years after its launch, YouTube, a subscription-based business, has failed to
gain traction . They've shifted their focus to music streaming services . Because it is more
driven by the platform's founders, it has the potential to become a niche competitor in the
video streaming industry. YouTube also has no intention of competing with Netflix and
Amazon in terms of spending.
A Complete SWOT Analysis of Netflix
A SWOT analysis is a fantastic and effective tool for assessing a company's position in its
industry. SWOT is an abbreviation that stands for...
We can investigate the internal elements that can affect a company's success using
strengths and weaknesses, and we can investigate the external factors using opportunities
and threats. This is a comprehensive SWOT analysis of Netflix, one of today's most popular
OTT (over the top) media services.
Let's look at some of Netflix's advantages. These are the brand's fundamental strengths,
which provide Netflix a competitive advantage over its competitors.
Strong Brand Equity -
Over the years, the organisation has been able to establish substantial brand equity. It has
done so by providing excellent customer service, which has grown its popularity.
Original Content
Netflix has recently begun producing original series and films. Some of them grew in
popularity to the point where new subscribers began flocking to the platform. Stranger
Things, Narcos, and more series are among them. Netflix has a competitive advantage over
other platforms because the content is not available anywhere else.
A large clientele
Its global subscriber base is expected to reach 200 million by 2020. There is currently no
other platform with such a vast customer base, giving Netflix a competitive advantage.
Copyrights to the Content Netflix does not hold the copyrights to the content in its collection, save from the stuff it
produces on its own. Netflix has partial rights to material made by other creators for a limited
time. Some of the same information is also available on other similar services. This is a
possible flaw in the platform.
Business Model That Can Be Replicated
Netflix's business model isn't so unique that it can't be replicated by others. Many similar
platforms have evolved, and these services are displacing Netflix from some of its market
Internet access is required
Netflix users can only utilise the service if they have internet connectivity. Even though users
can now download video to watch offline, the content must first be downloaded over the
internet. This extensive reliance on the internet could represent an issue for the platform,
particularly in nations with underdeveloped internet infrastructure.
Let's take a look at Netflix's brand prospects. These are external strategic elements on which
Netflix can concentrate its efforts in order to expand its business and increase income. 14
Market Expansion into Newer Areas
Netflix has a massive global presence. It can be found in over 190 countries. However, in
nations where the service was only recently established, the majority of the population
remains untapped. This is a prospective user demographic for Netflix, and if they can figure
out how to tap into it, they'll be able to boost their earnings.
Product Mix Evolution
People want to know what is being watched in other nations while watching local material as
the world becomes increasingly globalised. Users could be shown international content to
pique their interest in the platform.
Development of Multilingual Content
Netflix is aiming to add more material in different languages. It can work even harder to
deliver local material and stories to the people in the nations where it operates. The content
variety could also be increased.
Heightened competition
Netflix is up against a lot of competition since its business model is so easy to copy. Players
such as Amazon Prime Video, Disney+, and others are not only licensing material from
other producers, such as Netflix, but are also generating their own content in-house to
attract a loyal audience. This is a significant danger to Netflix, as the battle for market
dominance has shifted.
Piracy of content
Content piracy is still a huge danger to companies like Netflix, especially in emerging
economies (which are also potential clients for such services). Users that do not use Netflix
illegally watch content on numerous websites.
Mission and Vision
A company's mission and vision statements are its first point of contact. What a firm wants to
achieve, how it will do it, and where it wants to go in the future are all important aspects of the
mission and vision statement. "To entertain the world," says Netflix Inc.'s mission statement.
This succinct remark demonstrates the company's broad view of the target market. Although
this mission statement does not precisely depict the three fundamental components of a
mission statement, it clearly specifies the target market and the company's goal.
The following aspects are included in Netflix's mission statement:
Service of entertainment
Netflix Inc. has evolved into a video-on-demand streaming service. They provide
entertainment services that include movies, series, documentaries, and feature films from
every genre of film. It extrapolates the product category, the actions of the company, and the
industry in which they operate. They don't describe any specific product or service in terms of
strategy, but they do give an overview of the market they serve. It provides a competitive
advantage because future corporate expansion will not conflict with the company's purpose
and mission.
Mission statement
Netflix will entertain the world, as stated in its mission statement, indicating its goal of serving
a large number of people worldwide. Netflix's business strategy demonstrates how it
differentiates services based on a target population. They produce and pick content for
various age groups and differentiate content.
The vision statement represents the long-term aim and the planned future location. The
vision statement reflects the company's goal and aspiration. "To be the best worldwide
entertainment distribution service," says Netflix's mission statement. Netflix is a firm believer
in integration and innovation. Its vision can be used to demonstrate this. In the entertainment
business, it has become a trend-setter. It was a competitive competitor in the industry
because of its attractive products. Netflix is aware of technology shifts, unmet consumer
needs, and an increasing demand for entertaining services. All of these endeavours
demonstrate a desire to be the worldwide entertainment industry's market leader.The vision
statement contains some observable characteristics, including:
1)Global Distributor
Netflix has spread around the globe. They would have entered roughly 160 new markets by
2016 with tailored products and services. It is no longer confined to a specific location.
Except for China, North Korea, and Syria, Netflix is available everywhere. Understanding the
market and its customers is crucial to the company's global expansion. Netflix reaches the
top of the funnel by developing specialised content using machine learning and artificial
intelligence. Netflix's culture is adaptive, thanks to CEO Reed Hastings' imaginative attitude.
2)Best in all
Netflix competes successfully with worldwide brands in the entertainment industry. In this
industry, market players include Amazon Prime, HBO Max, Paramount +, Hulu, and Apple
TV +. Features like price optimization provide you a significant competitive advantage over
your competitors. In popular culture, "Netflix and Chill" has become a common phrase.
Customer satisfaction and rising demand provide the impression that you are the best of
Netflix is the world's most popular online streaming service, allowing users to watch videos
and other content on a variety of devices ranging from smartphones to smart TVs. It may be
connected to other electronic media devices such as the PlayStation, Xbox, and Apple TV,
allowing users to stream content straight to a large screen. Netflix also produces a lot of
original web material, much of which is now available in high-resolution ultra HD quality.
Netflix intended to restrict proxy access to banned and explicit content. Netflix India members
would be unable to use proxy servers to access content that is not available in the country as
a result of this move.It also said that at the time that all of its shows would not be available
immediately to subscribers in certain countries, but that it was working towards resolving it.
Basically, the aim was to provide a service around the world that is more similar that not.
Using VPN’s or proxies to virtually cross borders violated Netflix’s terms of use because of
licensing restrictions on TV shows and movies. Netflix’s renewed focus on Indian market was
driven by the fact that 4G was becoming mainstream in the country, with Airtel, Vodafone and
Idea already launching 4G services and Reliance Jio offering the services to public by mid2016. Also, online video consumption in India is growing enormously, this is evident from the
fact that in 2014, Indian Internet users consumed 41 billion minutes of videos every month,
which is 15,418 minutes of online video accessed per second.Netflix and the Internet
Television Network's Evolution, Osur, Laura Netflix's massive customer base provides
them a lot of power in the media world, but it also comes with a lot of responsibility to
maintain providing material to its many different users. RBC Capital Markets analyst
Mark Mahaney notes,As Netflix grows in size, it will become more difficult to outbid them on
any title. They have the biggest indie following. Their arthouse audience is the largest. Netflix
is attempting to break down barriers across media by promoting itself as a one-stop shop for
television, movies, and documentaries. Most crucially, Netflix will deliver all of its content to
customers directly, which is great if the movie theatre or cable network intermediary gets lost
in the flow.
Challenges in Streaming Service Search: A Case Study of Netflix; Lamkhede,Das - The
particular user expectations from Search on a streaming video platform necessitate
methodologies that go beyond traditional information retrieval and lean more toward
behavioural data, as described in this paper. To boost user happiness through content
discovery, Search and Recommender Systems must collaborate. Many of the issues
originate from the users' desire to play an entity that may not be available to stream, or their
want to explore the repertoire via Search, as well as the multilingual component of search for
a worldwide audience, as well as the constraints of input devices urging shorter queries.
While the goal, user interface, and style of user engagement may change amongst services,
I believe that these difficulties apply to all streaming service providers.
Netflix: An in-depth examination of their proactive and adaptable growth plans, as well as
their approaches to net neutrality and digital equity; Jain, Mandal, Diroma - While Netflix has
been a highly successful adaptive corporation, there are a few things it should keep in mind
as it moves forward with such a large audience. This section delves into the issues that
Netflix will face in the international market in the near future. Regardless of how urgent the
organisation's strategic requirements are, it risks losing its reputation and being viewed as an
opportunist firm.This may be seen as a case where the firm is only concerned about its own
profit and expansion plans and does not fully relate itself with the issue of digital equity. The
broadband infrastructure has also been accused to be of substandard quality in some of the
markets. The logistical elements of Netflix can be considered as a very expensive thing in 19
many emerging markets, unlike how it is considered in the USA. Hence, the company will
need to adapt itself not only to deal in a balanced manner with the infrastructure providers,
but also with those who help maintain their payment systems as per the payment behaviour
of the people in those countries.This could be interpreted as a scenario where the company
is primarily concerned with its own profit and expansion goals, and not with the issue of digital
equity. In other markets, the broadband infrastructure has also been criticised for being of
poor quality. In many emerging nations, unlike in the United States, the logistical features of
Netflix can be regarded as a highly pricey thing. As a result, the corporation will need to adapt
not only to deal with infrastructure providers in a balanced manner, but also to those who
help maintain their payment systems in accordance with the payment behaviour of the people
in those countries.
Nover, S. (2018) discusses the emergence of visual media from the 20th century. The
evolution of technology paved Netflix to offer certain facilities to the public, the decision to
launch a video streaming platform was one of them from the conventional DVDrental
program which they had previously followed. Adaptations of new policies had helped Netflix
to gain a role in the competitive market.
Hampton-Sosa, W. (2017) says that digital piracy is one of the challenges that is faced in the
digital world . As corrective measures it is very important for the customers to look into the
quality, information and authorization rather than looking at the free charge from
unauthorised websites.
Wayne, M. L. (2018) says that branding is the strategy followed by the television industries to
gain an advantage over time.Amazon and Netflix are rivals in the market which are trying to
fabricate strategies’ to attract customers subscribe to their premium accounts and also they
are laying out plans to throw out traditional television networks and to sustain from the
competition of parallel entities.
The goal of this study is to demonstrate how Netflix can effectively use marketing
strategies in both their present and future markets. It also throws light on marketing
environment tools of Netflix.The purpose is to make recommendations to the netflix
marketing team.This study was performed by studying how marketing strategies
are used and how Netflix use it in their business.
● To understand the marketing strategies that can help Netflix to dominate the Over-TheTop online video streaming services in India.
● To determine the challenges faced by Netflix in the growing Indian video streaming
● To determine the major competitors of Netflix and their strategies in getting customer
An organisation's marketing plan gives it an advantage over its
competitors.Strategy aids in the development of goods and services with the
greatest profit potential.Marketing strategy 22 aids in the discovery of areas
affected by organisational growth and, as a result, aids in the development of
an organisational plan to meet customer expectations.It assists in determining
the appropriate price for an organisation's goods and services based on market
research data.Effective departmental coordination is ensured by strategy.It aids
a company in making the best use of its resources in order to deliver a sales
message to its target market.
A marketing strategy assists in determining the advertising budget in advance,
as well as developing a mechanism for determining the scope of the plan, that
is, the money created by the plan.
The study comprises Ott industry, mainly Netflix.It sheds a light on the marketing strategies
and marketing environment of Netflix. The scope of the study is limited to certain aspects
such as comparative study of competitive products, Research on Distribution and the
marketing environment.In this paper, we would like to see how effective Netflix's marketing
strategies are. We seek to gain a better grasp of the magnitude of these strategies' effects on
citizens' consumer behaviour through our research.
The factors that result in the success of a company may change with change in time because
marketing trends change with change in time. Continuous monitoring and close observation
of factors that work well for a company is necessary to maintain a competitive edge in the
market. Only with a competent marketing strategy can an organisation achieve its
objectives.Moreover, marketing strategy helps in discovering the areas affected by
organisational growth and thereby helps in creating an organisational plan to cater to the
customer needs.Understanding the behaviour and impact of marketing strategies of netflix will
help ott platforms in developing their services and meeting customer needs and designing the
proper marketing programs and strategy.
This market was chosen because of positive statistics that
demonstrates its growth, such as rising online content
consumption and a high level of technological equipment
tied to mobility and high-speed connectivity.These figures
would appear to be an appealing scenario for Netflix's
vast internet distribution colonisation strategy, but they
were not included in the company's initial
internationalisation strategy.The case study technique
draws on material gleaned from a survey of the
bibliography as well as data published by internet
companies and specialist publications.
Secondary data are in the form of finished products as they have already been treated
statistically in some form or other.
The secondary data mainly consists of data and information collected from records, company
websites and also discussion with the management of the organisation. Secondary data was
also collected from journals, magazines and books.
Secondary research (literature, articles, company official press notes, company public
speeches & videos),blogs by the organisation itself.
As of April 2022, the most costly countries in the world for a monthly Netflix
Switzerland and Denmark were the most expensive places in the world to get Netflix,
with a monthly basic subscription costing 12.50 U.S. dollars as of April 2022. In
Denmark, the monthly price for a Netflix subscription amounted to 11.55 U.S. dollars,
and Swedish subscribers paid 10.48 U.S. dollars per month to use the basic plan of the
streaming service.
As of 2020, acquired programming accounted for 62.2 percent of Netflix's overall budget
globally. However, in 2025, it is only predicted to account for 53.5 percent of the overall
budget. In comparison, original programming accounted for 37.8% of Netflix's budget in
Netflix subscribers From the second last quarter of 2011 to the fourth quarter of 2018, this measurement
shows the global number of Netflix customers.
Netflix had over 148 million worldwide spilling endorsers in the fourth quarter of 2018. The
United States alone accounted for 60.55 million of the endorsers. Netflix's DVD section has
declined as the company's gushing administration has grown in popularity. In 2018, 2.73
million people in the United States supported Netflix's DVD rental service, down from 11.17
million in 2011.
No of
2011 201
2015 2016 2017
57.3 9
74.7 6 93.8 117. 58
148. 46
Competitive focus - Let us now analyse the differences in content strategy between the
company and its competitors. Hulu and Amazon, for example, invest extensively in
high-quality material, implying that the streaming war will be waged mostly on the basis of
content uniqueness. Second, Amazon is pursuing live sports broadcasting rights, and
competing for this market would result in lower profitability for Netflix.
As a result, Netflix has stated that its primary focus will continue to be on high-quality
television programming (particularly popular stand-up comedy) and films (they recently hired
Scott Stuber to lead its original film initiatives).The goal is to create a film portfolio that will
attract and retain viewers while also minimising the cost of licensing these films in relation to
the number of subscribers who watch them.This method has recently been implemented in
every new country that they have approached.
To summarise, Netflix's content strategy is built on three pillars:
1. Unique Content
2. Comedy shows and other popular television shows
3. Films with excellent reviews
India's cable TV subscribers Forecast over the past five years:
This statistic depicts the number of link supporters in India in the 2018 fiscal year, with
projections until 2023. In India, it is estimated that 91 million people will have purchased link
benefits in the fiscal year 2023.This graph shows a decrease in the number of cable TV
customers from 2018 to 2019, however Statista.com predicts that this will not be the case in
the coming years, with the number of cable TV subscribers stabilising by 2023. This clearly
demonstrates that online video streaming services, particularly Netflix, have no impact on the
number of cable TV users in India.
Brand and Key Sections-Wise Leaderboard
After comparing and studying the TV Section and Movie Section for Disney+ Hotstar
and other OTT Players: ZEE5, SonyLiv, MXPlayer, Voot, and AltBalaji, as well as
other OTT Players: ZEE5, SonyLiv, MXPlayer, Voot, and AltBalaji.
Analysis of the TV Section and the Film Section: Disney+ Hotstar contributes 59.69
percent and 75.16 percent of total TV Section and Movies Section traffic,
Netflix marketing is a comprehensive, flexible strategy to brand building and customer
relationship management that, because of innovation, integration of cutting-edge technology,
creative advertising, and real-time data analytics, performs well in the digital age.
Unlike traditional marketing strategies, which focus on earning sales through one or two
channels, modern marketing, as practised by Netflix, adapts to market fluctuations.
Like Netflix, your brand can connect with customers across a variety of mediums, devices,
and touchpoints with continual research and optimization.
Netflix's current marketing tools are data-driven, customer-centric, tailored, and omnipresent in
What are the Netflix Marketing Principles?
Netflix's marketing approach is an excellent illustration of how to apply modern marketing
techniques. Netflix's marketing is always customer-centric, integrated, and flexible.
Netflix's marketing plan - distribution strategy.
While the internet appears to be the main source for the brand to reach customers in the
future, optimization across various mediums is also important. Continuous and seamless
video streaming, as well as the ability to download via Wi-Fi or mobile network, are some of
the important features for the platform's market acceptance.
Even with a spotty network, Netflix strives to provide the greatest possible video quality and
exceptional audiovisuals. The website and mobile app are both available.
Netflix's marketing plan - Brand equity strategy
Netflix has established itself as an innovation in the entertainment industry throughout the
years. With a phenomenal brand worth of $5.6 billion, the brand's global subscriber base
appears to be increasing quickly. Netflix has built an application called Flixchat as part of the
brand extension, which will promote the essential message, logo, name, and packaging.
Netflix is already well-known for its marketing prowess, from presenting and promoting top
blockbuster shows to collaborating with the most powerful figures in the industry. The
following is a list of the brand's current marketing strategies.
Netflix Content Strategy :
As previously stated, Netflix's approach to content distribution has been either proactive or
reactive. Forbes examined its content strategy in April 2017 using intriguing metrics like
originality, trend, and audience identification. In fact, Netflix's 2017 results were out of the
ordinary. However, there has been significant variation in performance between the domestic
and international markets, which could be attributed to their content approach. The company
has maintained its great performance in the worldwide subscriber market, with significant
growth. However, the company's growth in the domestic subscriber market has slowed,
owing to increased competition in the streaming category. In the domestic market, the
differentiators in the content sharing approach were essentially limited in volume and
Global Expansion Strategy Netflix's global expansion strategy was implemented in stages. It began with countries that
were geographically/physically adjacent to one other, as well as markets that were similar to
the United States. For instance, in 2010, it began expanding internationally to Canada, which
is geographically near to and shares many characteristics with the United States (Brennan,
2018). The company was able to learn more about internationalisation capabilities in areas
outside of the United States as a result of this.
Netflix expanded its services to additional 43 countries in the second phase of its expansion,
largely in Latin America and Western Europe (Izquierdo-Castillo). This enabled the
organisation to keep learning about localization and forming collaborations with local
businesses and stakeholders. It also allowed Netflix to gather information. Netflix stepped up
entry into the remaining markets during the third and final wave, bringing it to 190 countries.
It was able to put what it had learned in the previous phases to good use, such as which
types of material consumers prefer, which types of marketing they respond to, and how the
organisation should structure itself in general (Brennan, 2018).
Netflix takes a global approach, launching the same core product concept around the globe.
Foreign Market Entry Strategies. Netflix has a hybrid entry mode that varies depending on
the market. While majority of Netflix's US-centric material is exported, the business also
licences its content to local market players, allowing them to show Netflix's content. To make
its programming available as part of their existing video-on-demand offering, the company
partners with significant local industries such as cell phone and cable operators. Netflix's
method to entering China is an example of licencing. Netflix does not currently have a
business or provide services in China. It has had difficulty breaking into this market because
to China's tight data and censorship restrictions.
Remarketing Strategy of Netflix
When it comes to remarketing to viewers, Netflix favours its competitor website Youtube,
which is one of the most popular streaming video platforms where users may watch a variety
of genres for free.
Netflix does not run SEM advertisements on competitor terms, nor does it do much with
social media marketing, according to our analysis. After leaving the register page, we came
across two retargeting YouTube adverts, one pushing the Rs199/- pack and the other
promoting a new movie that had just been released.
This is the first skippable commercial we've seen on Netflix's competitor YouTube, where the
brand is pushing its Rs199/- per month bundle.
Because the 199-per-month plan is a new Netflix offering, the company is pushing it
heavily in the hopes of attracting more subscribers.
On Youtube, we were also given another skippable Netflix advertisement.
● Netflix keeps its viewers up to date on what's new by sending them periodic app
● Netflix is also seen making recommendations to consumers who are unsure what to
watch. This occurs when a user leaves the app without watching anything or scrolling
for an extended length of time.
● The company also sends out push notifications to its consumers when new episodes,
returning series, or upcoming shows/movies are released.
● Another fantastic feature is that the brand uses push notifications to allow customers
to rate a show they just watched.
● The tone employed in push notification communication is usually lighthearted and
occasionally amusing.
Factors of politics Because Netflix is located
in the United States, its worldwide political
and economic links may have an impact on
where it expands. When it comes to launching
material in various markets, it must also
consider politics. Many people in Colombia
were angry when Netflix marketed the show
"Narcos," since they perceived it as Netflix
glorifying the drug lord Pablo Escobar, who
had harmed their country and culture.
Economic considerations Fluctuating
currency rates are one example of
economic forces. Netflix's earnings may be
impacted by adverse foreign exchange rate
swings because it operates in multiple
countries and currencies throughout the
world. Economic growth in many economies
has a direct impact on purchasing power; an
increase in disposable income will
eventually lead to more entertainment
Social factors
Consumer demographics and preferences
are important elements since they have a
direct impact on product offerings. Netflix
must research and understand its target
audience in order to adjust its marketing
efforts and content to appeal to viewers
from various backgrounds and cultures.
PESTEL Analysis
Technological factors
The most essential aspects are
technological ones, as Netflix and the
streaming business as a whole rely largely
on them. Internet coverage, speed, and
capacity are all aspects that have an
impact on viewers' accessibility and
streaming quality. As a result, Netflix must
take into account the technology
improvements of the various areas it
enters. Netflix, on the other hand, is
benefiting from the rise and spread of the
internet in general, which includes
accessible on phones, tablets, and smart
Environmental factors
Netflix has the potential to make a
bigger contribution.
help the environment by procuring
more renewable energy to offset its
carbon emissions
footprint. It does not produce tangible
things, but it does produce carbon
indirectly. by consuming energy to power
the servers This is a trend that many tech
companies are adopting.
Larger tech firms, such as Apple,
Facebook, and Google, continue to
initiatives to create a
renewable-energy-powered Internet
Legal factors
Compliance with government censorship
restrictions in various countries is one of
the most important issues.This has a direct
impact on the kind of content Netflix can
stream in different areas, as well as the
amount of editing it must do. Netflix must
also examine copyright and intellectual
property rights regulations because it
produces and licences so much content.
Netflix must invest in resources to maintain
compliance with regulatory agencies in
each region because it operates in so
many countries.
Porter observes five market forces that help shape industry competitiveness. These five
forces include "customer bargaining power, threat of new entrants in the market, supplier
bargaining power, competitive rivalry in the industry, and threat of substitutes". Netflix uses
Porter's Force to shape its competitive edge in the huge video and internet media
entertainment industry. Each of Porter's forces plays a key part in the creation of the
company's business model, as will be seen in the analysis that follows.
Threat of New Entrants Given the threat of new entries into the movie rental sector, Netflix has developed innovative
strategies to deal with the constant push of newcomers. Obviously, competition grows a large
enough business to be considered a threat. However, the earliest rivals' costs will be quite
high due to the number of software, hardware, and employees. Competitors in the sector will
not be prepared to compete on an internet level, forcing them to cut back or even replace
workers to cope with the strain. Netflix benefits from this trend in a variety of ways, as their
distribution methods are already completely controlled by online social trends.
Suppliers’ Bargaining Power Netflix has been observed to have low supplier negotiation power for a variety of reasons. To
begin with, switching costs among important suppliers are negligible. There is also no
replacement for the company's suppliers. More crucially, when sector earnings rise, suppliers
are projected to raise costs, while Netflix's volume disposed of offsets the rise. In this
instance, there is no indication that consumer demand for Netflix products would wane
anytime soon.
Buyers’ Bargaining Power Customers' bargaining power is an important factor in deciding how much pressure they
exert in the market. Netflix takes a number of techniques to address this, as seen below. In
most cases, customers will not purchase significant amounts of the goods. The industry has
a small number of operators. The industry supply of fixed cost bins is relatively high, and this
will be applied to the surrounding competitive parties. Netflix sells its products at a lower
price than its brick-and-mortar competitors, catering to customers' budget-sensitive
preferences. Customers are unable to create the product. The product is solely intended for
amusement purposes.
Customers' bargaining power Customers' negotiating power is a key aspect in determining how much market pressure they
exert. Netflix has a variety of strategies to combat this, as shown below. Customers, in most
situations, will not purchase large quantities of things. There are only a few operators in the
sector. The supply of fixed-cost bins in the industry is relatively high, and this will be passed
on to the surrounding competitors. Netflix charges less for its services than its brick-andmortar competitors, appealing to users with tight budgets. Customers are unable to design
the item. The product is purely for entertainment purposes. Finally, the average person will
have no idea what something will cost.
Competitive Rivalry The video rental market appears to be bursting at the seams with competitors. However, the
majority of these competitors' techniques are outdated and ineffective in terms of market
impact. Despite the fact that competitors' products are similar, Netflix's extensive use of web
services makes it the most appealing option for customers. The industry's market
advancement is expected to continue.
Introduction, Growth, Maturity/Stabilisation, and Decline are the four stages of the industry life
Netflix has reached maturity, according to the graph, as a result of the sustained market
penetration it has built over the years. Other companies would find it difficult to enter the
market and maintain the foundation that Netflix has maintained for the previous ten years.
However, due to the Industry Life Cycle, Netflix may experience some reduction in the near
future. Because "consumer demand is very high and steady at this point, organisations gain
maximum revenue, profitability, and cash flows." Products become more widely available and
popular among the general population, and their prices are relatively low when compared to
new products."
The most popular Netflix content type is movies.
Content output increased steadily throughout the years until around 2019, when it began
to decline. This could be due to the COVID-19 pandemic, which wreaked havoc on the
entertainment industry at the time
Since 2018, the development of content for both movies and other shows has decreased, as
shown in the graph above.
The Netflix market is dynamic, diversified, and constantly changing due to a variety of
factors. Market segmentation allows the organisation to divide its subscribers into various
categories based on their needs and desires.
Netflix uses behavioural segmentation to automatically offer personalised content to its 158.3
million users every day.It uses Machine Learning (ML) to gain insight into its customers'
viewing habits on the TV streaming app. Netflix then uses this data to categorise users into
categories depending on their behaviour, allowing the video services provider to create a
more tailored experience.For example, if you're a Netflix subscriber, the corporation will know
which shows you've viewed in the previous month. It can detect your preferred genres based
on the data and make content recommendations for you to watch in the future.Active
prospects can also be monetized using this form of client segmentation. For instance, armed
Geographical Requirements - Netflix recently expanded its services to over 190 countries
worldwide, providing them a competitive advantage (Netflix.com, n.d.).While expansion can
lead to significant earnings and growth, it is a difficult process with numerous obstacles.
Different legal and regulatory frameworks, such as negotiating content deals and getting
geography-specific licences, are one such issue (Netflix.com, 2015). Because each
geographical place has its own culture, habits, and practises, catering to each individual's
preferences would necessitate significant and costly research. While many countries have
high-speed Internet connectivity, expansion is limited to urban regions that utilise streaming
technology. Netflix is a household name in the United States, and reestablishing that
reputation and trust in each region would be difficult.
Demographic criterion In many ways, the Netflix customer base is diverse. Netflix has a wide range of content
that appeal to a wide range of age groups, from children's shows to thrillers. The agebased market is endless; nevertheless, older people who are unfamiliar with technology
prefer traditional watching means such as cable. Females and boys aged 18-24 use online
streaming the most, averaging 3.7 hours per week. Teenagers and young adults use the
internet at a rate of 93%, making them a main target audience.
If we utilise the STP approach, a well-known marketing strategy, it will reveal Netflix's
marketing strategy, as well as some company information and possibly a different
What exactly is STP?
STP is a three-step market approach that includes segmentation (S), targeting (T), and
positioning (P). STP is a comprehensive examination of the current state of the business
sector and the organisation. The results are then used as a foundation for the brand's critical
marketing and positioning, but "its value rests in its ability to produce profitable business
open doors from similar business sector situations," according to the report
The Netflix business sector is continually on the lookout for changes in innovation and
customer behaviour. According to Hannah (2016), a survey estimates that over 2.7 million
Australians used Netflix in 2015 to stream movies or TV shows.There are several strategies
for segmenting the market in the video streaming business, but due to the very diverse
character of clients, who alter in age, income, geographic region, and viewing choice over
time, there are no guarantees. None of the divisions will be identical in terms of property,
quantitative, generous, open, distinguishable, notable, and, most importantly, productive.
Netflix focuses on a mass market of people who want to buy a membership to watch TV
shows and movies, hoping to get the biggest slice of the pie.Despite the fact that Netflix
focuses on broad business sector enrollment, it focuses on individual supporters' demands in
order to keep them for a long time. Because of the business and administration model, the
bigger the number of paying supporters, the more Netflix can achieve a return on
overwhelming interest in content and innovation.
Customers' top needs include comfort, reasonableness, speed, video
personalisation, and a large selection of titles. Netflix strives to be the best option
for its customers by providing a more personalised, speedy, helpful,
high-definition, but modest internet streaming service than the bulk of competitors.
Bidding on Marketing
According to netflix What should we spend on a specific marketing impression? We can assess the total effect of
our marketing expenditure and focus bids on chances where they will make the most
difference by keeping track of "who would have signed up and watched regardless." Our
Machine Learning algorithms use causal modelling techniques to assess how much
incremental value can be attributed to a specific impression and how much we should spend
on it.
1. Market hazards do exist for a corporation that operates in over 190 countries and has
195 million clients. The remote macro-environmental elements have multiple effects on this
company. Netflix's PESTEL study aids the corporation in identifying risks, addressing
issues, assessing the scope of future market expansion, and focusing on productivity.
2. Porter's Five Forces model for Netflix illustrates many facets of the company's business
strategy. It has worked on its growth plan to expand and grow in numerous areas through its
services on a regular basis. Online drawing software is useful for creating five-force models
for your company or studying successful business models such as Netflix, Amazon, and
3. In a country like India, Netflix is a unique and well-established company. It has so far done
a good job of identifying and positioning its target audience. Their existing marketing plan is
unquestionably adequate for a company of their stature and scale.
4.Following our study and inspection of their marketing techniques, which were already
remarkable, we presented ideas and proposals to help take the brand to the next level by
increasing Netflix's conversion rates.
While Netflix has been a highly successful adaptive firm, there are a few things it should keep
in mind as it moves forward with such a large audience. This section delves into the issues
that Netflix will face in the international market in the near future.Netflix has shifted its
positions in the past, particularly on issues like net neutrality.While such problems may be
relevant to the firm's immediate strategic needs, there is a risk of reputational damage and
being viewed as an opportunist firm.This could be interpreted as a scenario where the
company is primarily concerned with its own profit and expansion goals, and not with the
issue of digital equity. This sends the message that digital equity is only valuable to the
company if it benefits them directly. Many corporations have encountered backlash in the
modern era as people have gotten more rational, liberal, and informed about these
concerns.According to some assessments, Netflix's failure to provide material quickly enough
to meet the expectations of the local populace could be a cause of future difficulties. For
example, the mobile app industry is popular now because it offers extremely localised
services.This is true for the majority of internet-based businesses. As a result, Netflix should
aim to make its material as localised as possible, particularly in countries like Germany and
France, where local players have outperformed Netflix in terms of recognising audience
wants and then producing focused content.Finally, while Netflix boasts of its robust
infrastructure around the world, the payment method or procedure employed in some regions
may be somewhat complicated.In other markets, the broadband infrastructure has also been
criticised of being of poor quality. In many emerging nations, unlike in the United States, the
logistical features of Netflix can be regarded a highly pricey thing. As a result, the corporation
will need to adapt not only to deal with infrastructure providers in a balanced manner, but also
to those who help maintain their payment systems in accordance with the payment behaviour
of the people in those countries. The significance of values that Netflix gives to its clients is
the final point worth highlighting. The secret to Netflix's success, according to CEO Reed
Hastings, is that it closely adjusts to its users' needs. The Netflix recommendation engine, for
example, is really good at predicting what kinds of movies people will want to see. This is the
finest potential use of data analytics. As a result, suggestions account for 60% of the movies
added to customers' queues. "Netflix is more than simply a movie rental business," says
Reed Hastings, "it's a location where you can find the ideal movie for you to watch."
Strategies that netflix can teach others
Finally, let us look at some of the methods that Netflix may teach other businesses.
According to Market-Realist, Netflix's stock price increased by 30 percent in May 2017, which
is incredibly amazing. (See also the table of financial reports below.) However, if we go back
to the beginning, the main cause of this increase was Netflix's decision to raise its video
subscription rate by $1.00, which is a rather tiny amount. This is because they have a large
client base and are familiar with customer behaviour. According to their poll, 73 percent of
customers said the increase made them less likely to terminate their subscriptions.Another
intelligent action that Netflix has always taken is that of building strategic partnerships. For
example, Netflix‟s partnership with Apple. Netflix allowed the owners of the Apple TV set-top
box to sign up for Netflix directly. They could even pay for the service through their iTunes
accounts. This deal was reported for Netflix to be an opportunity to access Apple‟s large
customer base while for Apple, it was a chance to provide their customers with more content.
Netflix's ability to enter local markets and rapid worldwide company expansion are indicators
of its internationalisation success. The company's strategy of working with local businesses
and customising its content for each market has given it a competitive advantage. As a
result, the company now has 183 million users spread throughout 190 countries.With the rise
of global, regional, and local businesses, the video streaming industry remains a competitive
business area, especially across foreign markets. As a result, Netflix should continue to
improve existing collaborations and consider forming new ones with both global and local
businesses. This will aid the organisation in mitigating and avoiding risks associated with
international markets, as well as maintaining its competitiveness.
There are other untapped markets with enormous promise, such as China, which Netflix
should continue to pursue. Netflix's internationalisation initiatives have seen exponential
growth over the years, but as the market matures, the curve may begin to flatten. As a result,
the company under consideration should consider expanding in order to maintain its growth.
https://www.statista.com/statistics/1013554/most-expensive-netflix-subscription-costscountri es-worldwide/
https://iide.co/presentations/marketing-strategy-of-netflix/#Target_Audience_of_Netflix__Buyer_Pers ona