Introduction

One of the top entertainment services in the world, Netflix has 214
million paid subscribers in more than 190 countries who enjoy TV
shows, documentaries, feature films, and mobile games in a range of
genres and languages. Members have unlimited access to watch on any
screen that is connected to the internet at any time. Without
interruptions or obligations, members can play, pause, and resume
watching at any time.
On January 2, 2016, the company said that they have added 130
additional nations to their list of 60 existing ones where they had
provided their services, including India. India was a relatively new
market for this kind of service, and due to infrastructure issues and low
broadband penetration, the country's videos, depending on the
consumer's device, would be of poorer quality.
Additionally, as part of its efforts to improve its services, the
corporation began creating its own original material, including original
television series. It featured a number of current hits, including Orange
is the New Black and House of Cards. This significantly decreased
reliance on content sources in the US and Europe.
In order to provide SVOD services to Indian users, the company
expanded its operations in India in 2016 using the same technique. By
examining the trend and shifting market dynamics in India, which are
moving toward more smart phone usage and broad band internet, this
has been taken into consideration. The majority of consumers in India
access videos and movies on their smartphones more frequently than
they do on TV on average. The company has a fantastic potential to
introduce its strategy in India, but the Indian market is still expanding
and has infrastructure issues. One example of this is the slow internet
speed. Another is the availability of cable TV. A third is the existence of
reputable producers of Bollywood content, such as Hot Star and EROS.

Marketing Strategy of Netflix

With the hosting and promotion of popular blockbuster shows as well as

partnerships with the greatest influencers, Netflix has already earned a solid
reputation for its marketing strategy. Here is a summary of the brand's current
marketing initiatives.

Netflix Homepage/Landing Page Analysis

The brand's home page or landing page, where new or returning customers go to
buy or renew their packs. The following characteristics set Netflix apart from
competing companies:-

 A straightforward landing page with just one place for consumers to enter
their emails and a clear CTA button in red to catch their attention and
persuade them to join up. To draw attention to the popular Netflix series
and movies, use an image of all the top trending shows as the background.

 The purchase and cancellation policies of the business are communicated

in a clear and concise manner .This page's sole goal is to collect visitors'
email addresses, which aids in increasing conversion rates. The bottom of
the page does the same function. The features that a Netflix customer can
access draw consumers in. The brand would benefit from adding a CTA
 button here as well, which would encourage more website visitors to sign
up for a premium subscription.

Netflix Pricing Strategy

As the leading OTT platform, Netflix uses a monthly subscription model and offers
differentiation based on streaming quality and the quantity of screens. They have
refined their subscription-based business strategy by doing the things listed
below.
• The brand does a terrific job of keeping things as simple as possible, requiring
only 3 easy actions.
In order to entice users to sign up, we observed that the brand mentions its USP
at each stage of the signup process. After the user selects a plan, Netflix directs
them to a secure payment page where the USPs are listed. Once the information
is entered, the user's subscription or renewal purchase process is complete.
 
 Netflix Email Strategy

Email marketing is one of the most effective and cost-saving methods of

communicating with your customers. Netflix understands that well and currently
uses automated emails to follow up on incomplete payments as follows:

 • The brand frequently uses emoji’s to grab attention and maintains the tone
simple.
• Netflix keeps its current subscriber users updated by sending out regular
reminder emails about new movies and series introduced.

With only a click of a button, Netflix subscribers have the option of being
forwarded directly to the app from their email.
• The brand's creative implementation of a rating function in their emails is
noteworthy. Users can express their preferences for a show they saw right in the
mail.

Based on their viewing habits, Netflix also suggests content for viewers to watch.

Remarketing Strategy of Netflix

When it comes to remarketing to users Netflix tends to focus more on its

competitor website YouTube as it is one of the largest streaming video platforms
where people consume various genres of content for free. 

Through our investigation, we discovered that neither Netflix nor other SEM
advertisers frequently use social media to advertise. After leaving the register
page, we came across two retargeting YouTube adverts, one promoting the
Rs199/- bundle and the other a recently released movie.
The brand here is promoting its Rs. 199/- per month package. As the 199/- per
month pack is a new launch of Netflix, the brand is seen promoting it to a great
extent as it would help them get more users to sign up. This is the first skippable
advertisement we came across on Netflix's rival website YouTube.

We also saw another skippable Netflix advertisement on YouTube. The company

is marketing its soon-to-be-released new movie with this image.

• We also found a banner advertisement for the same promotion on YouTube,

where clicking would send the user to the register page.

The brand also informs users by push noti fi cati ons on new episodes,
returning series, or coming soon shows/movies.
• Netf lix keeps its users up to date on what's new by periodically
sending app noti fi cati ons.
• Netf lix also is seen giving suggesti ons to users who are unsure of what
to watch. This acti on is seen when the user frequently exits the app
without watching anything or scrolling for a certain amount of ti me.
• The brand's ability to let people rate a show they saw via push
noti fi cati ons is another outstanding feature.

Influencer Marketing Strategy of Netflix

Netflix has a strong grasp on the zeitgeist and it employs influencers, both local
and international to its advantage flawlessly.

Collaborations with prominent influencers or celebrities are a significant

component of Netflix's publicity or marketing campaigns. Since their partnerships
with well-known figures account for a significant portion of their marketing and
promotion, Netflix does not invest much in running advertisements. Netflix
successfully markets its content to its target audience by working with such
influential people because its main target demographic follows them on social
media platforms like Youtube, Instagram, Facebook, and Twitter.

• Netflix also pays close attention to users who like watching material in other
regional languages in addition to its Hindi/English-speaking audience. The brand
has its regional page where regional influencers and celebrities are seen
promoting such content

Solutions to – Improving Netflix’s Digital

Marketing Strategy

What can the brand do for the coming year?

 

Netflix currently employs a successful digital marketing approach. I thoroughly

examined Netflix's strategy and came to the conclusion that by concentrating on
CRO, or conversion rate optimization, they might significantly increase the
effectiveness of their marketing. As more businesses implement digital marketing
strategies, the field of conversion rate optimization (CRO) is expanding. If you're
interested in learning more, check out IIDE's most recent Conversion Rate
Optimization Course. I recommended the following steps to help the business
enhance conversion rates and convert more customers.

Journeys for Email Marketing Automation

One of the newest methods for businesses to communicate with their customers
in a personalised yet automatic way in order to convert them or keep them with
the right content is email automation. At the moment, automated emailing
specialists are in high demand from large corporations because email marketing is
so popular. Visit IIDE's Email Marketing Course to learn more.
I have divided their email journeys into two:

1. Sign up Journey

 • When users interact with the narrative, advertisements, chatbot, or

whenever a new sign-in occurs from a new device, they will receive the
sign-up email.
 • The user will receive 3 confirmation emails after signing up, and the full
journey will take 7 days. A thank-you email will be sent to them once the
signup process is complete.
 Both emails include distinct CTAs that drive users straight to the app.
 

2. Retenti on Journey

When a user's subscription expires, Netflix emails them asking them to renew.
They don't use push notifications frequently enough to warrant resubscribing.
The student team suggests that they send more push alerts for
updating/renewing subscriptions in order to boost the retention rate of
subscribers. Through WebEngage, which sends emails and more push
notifications in an effort to boost the retention rate, they have gone through an
automated process.
The exhibit images that customers can access after paying are included in the
copy. Rejoin @ 199 is the copy's clear and concise call to action (CTA). We
attempted to instil a sense of "FOMO" in the users.
 Personalized Push – Notifications

Once you become friends, Netflix will send you a personalised

notification about what your friends are watching and enjoying.
They would be "pushed" more toward the app because this
would be exciting.
 Snap chat Ads

–
 
Netflix has done lenses on Snap chat, so why not an ad? Netflix is already majorly
present on Instagram, hence we suggest them to be present on Snap chat as it
will help Netflix to cater to a younger audience. 

Conversational Chabot

The student team has made a conversational Chabot, named PHIL, which comes
from the word cinephile, which will help Netflix gain more leads. This Chabot will
later assist with remarketing campaigns and increase in-app functionality and
intractability.

Remarketing Strategy
Netflix can conduct remarketing using the following channels by utilizing
multichannel marketing:
Netflix already runs numerous YouTube ads; we recommend doing the same for
remarketing.
• Chatbot - We will obtain leads via chatbots and remarket the same people in
accordance with their specific interests.
• Youtube - Since Netflix does not currently run such ads, we recommend
remarketing via Instagram stories and reels. 

Instagram Stories and Reels

 Since Netflix doesn't currently run any advertising, we also produced a reel
ad/story ad for them. This further enhances Netflix's "cool and trendy" image. For
a business like Netflix, we believe that reels and story advertisements using
current music are essential and perfectly align with the brand's mood board.

Lead Generati on
Currently, Netflix only requires one email when a user signs up, but there are at
least three other profiles created that are used by family, friends, and friends of
friends. Our students suggest Netflix keep the login process the same, but ask
users to enter email for the other profiles when setting up these other profiles for
the first time rather than just the primary email.

Porter’s Five Forces Analysis

Michael Porter, a Harvard professor, developed Porter's five forces

study to evaluate an industry's appeal and prospective profitability
("Porter's Five Forces: - Understanding Competitive Forces to Maximize
Profitability"). The competitive climate of the industry is identified using
Porter's analysis. There are five different factors that make it up.
Competitive rivalry, supplier and buyer power, the threat of
replacement, and the threat of new entry are the relevant factors.

I: Competitive Rivalry
For a long time, the media and entertainment industries have seen
severe competition, but that has changed recently as the streaming
sector has grown. With Netflix, the streaming business got its start.
Then, as word of their success spread, additional businesses made the
decision to enter the streaming business. Within the Indian market
Amazon Prime is a significant rival in this market. Along with its
streaming services, Amazon Prime also provides other unique
advantages like free online books, next-day shipping, and more. With
rivals like Disney+ and Amazon Prime, Netflix is constantly fighting to
retain its current subscribers in addition to gaining new ones.

II: Supplier Power

Over the past few years, suppliers in the Indian market have grown
significantly more powerful for Netflix. For a while, Netflix was the only
streaming service available. They gained enormous control over their
suppliers as a result. Most of the time, Netflix had their choice of the
media they wanted to stream. This is how Netflix acquired well-known
titles like the sitcom Friends and a wide selection of Disney movies,
including more recent ones like Moana. However, as more players
entered the streaming market, Netflix's providers had more clout in
negotiations.

III: Buyer Power

With respect to Indian market, the number of rivals entering the
streaming market has increased, giving consumers' (viewers')
negotiating power a boost. The power finally transfers to the viewers as
additional streaming service options become available. Depending on
the features and content a consumer wants, viewers can select from a
wide range of providers. Given how simple it is to transfer suppliers,
the buyer's leverage is also very strong. The power of the viewer is
amplified by the fact that the majority of streaming services are paid
for on a monthly basis and are subject to cancellation at any time. The
majority of memberships are priced at roughly 800 INR per month,
therefore the industry is not particularly price-sensitive. As a result, the
content that is provided to customers often serves as a decisive
element. Having said that, some users might adhere to the content they
love to view rather than attempting to make do with the service they
now have.

IV: Threat of Substitution

The streaming sector currently faces a rather low risk of substitution.
The media and entertainment industries have been overtaken by
streaming, which has nearly completely eliminated television
programming for teenagers and young adults. TV programming isn't a
great alternative because the younger generation prefers streaming
over traditional television. YouTube, where users may watch free
content provided by other users, is another option to streaming
providers. Despite its enormous popularity, YouTube does not seem to
be a replacement for streaming in general due to the dearth of quality
content. I don't believe that the free website alone is sufficient to
replace any streaming services because YouTube also provides its own
streaming service. Streaming is not threatened by the M&E industry's
present replacements, as far as that topic is concerned

V: Threat of New Entry

Specifically if we look into India’s market, threat of new entry has been
a problem for a while, but is currently on the decline. At this point, it's
really difficult to break into the streaming business. The biggest
roadblock is content. It may be nearly impossible for a business to
succeed in the streaming market at this late stage if it does not already
develop its own content. The first firm in the streaming sector was
Netflix. Other businesses joined in after their success appeared to be
stable. Several sizable streaming services exist now that did not begin
as producers but have developed into them, and all of the well-known
producers have already entered this market.

App Annie Analysis

SWOT Analysis

 Netflix’s Strengths
Exponential Growth – Over the past ten years, Netflix has exponentially
grown to become a major global player in the online streaming video
market, not just in the US.
Customer Base – With respect to Indian’s customer base, Netflix serves
more than 5.5 million individuals. With more than 5.5 million users,
Netflix has a strong negotiation position with the studios to secure
exclusive programming.
Reasonable Pricing – Netflix has an advantage over its rivals thanks to
its pricing strategy. The Netflix plans are reasonably priced and provide
excellent value.

 Netflix’s Weaknesses
Operational Costs – Netflix has a competitive advantage due to the
original material it produces, but this content's upkeep is becoming
more and more expensive. The amount is higher than what was spent
the previous year.
Copyrights – Netflix is troubled by the fact that the majority of its
original programming is not its property. The rights obtained from
other studios are typically only valid for a single year. When something
expires, other websites might see it.
Nonexistence Green Energy policy–. Netflix still doesn't use green
energy, and the company hasn't developed a business plan to support
environmental sustainability. The lack of green energy applications has
a negative effect on Netflix's brand reputation.

 Netflix’s Opportunities

Increase Customer Base - With such a large collection of content, the

Indian market can be expanded by Netflix. But if we look into the global
expansion rate, due to international policy, it is still not available in
nations including China, the Crimea, North Korea, and Syria.
Refresh Content library – By increasing the relationships with various
movie distributors, it can increase the licensing of its content.
Coalitions –It may also establish reliable alliances with various telecom
companies and supply bundle products in various nations.

 Netflix’s Threats
Competition - Netflix isn't the only company offering digital streaming
globally. The number of its competitors keeps growing yearly. HBO,
Amazon, Hulu, AT&T, and YouTube are continuously competing with
Netflix by offering its users recurrent, high-quality original content.
Facebook might be the new player making an attempt to penetrate this
market.
Digital piracy - Due to the high monthly charges, according to the
buying power of Indian market many people still discover alternative
ways to download media content, which contributes to the high level of
digital piracy.
Netflix Competitive Positioning

Netflix has already shown that it can alter the entertainment industry
because it leads the sector. However, because the guidelines for the
streaming sector are always evolving, they must also stay current with
current events.

Netflix Competitor Analysis – Most Popular Alternatives

Everyone is aware that Netflix dominates the home entertainment
market. The practice of consuming video content at home has
undergone a substantial change since this supplier first entered the
market in 1997. Netflix has gained the devotion of its customers by
providing top-notch services.

At the same time, a growing number of platforms have come online,

and they are now among Netflix's strongest rivals. This is what they are.
 Amazon Prime Video
Another well-known company that gives its customers access to
internet video material on demand is Amazon Prime Video. It is
obviously owned and run by Amazon. It was introduced in 2006, and
users have the option to either rent or buy TV episodes and movies.
 HBO Now
The well-known HBO network owns the HBO Now service. Similar to
Netflix, this on-demand video service runs its business. It provides
access to a tonne of intriguing content, including movies and television
shows. Users can access this information on a variety of gadgets,
including TVs, cellphones, computers, and tablets.
  HULU
I must admit that The Handmaid's Tale, an excellent television series,
introduced me to HULU. It has become my obsession. I think the entire
cast, the producers, and the crew did a fantastic job with it. But enough
about my favorite shows. Let's get back to the subject at hand.
 YouTube
Everyone is familiar with YouTube, especially those who use it for
vlogging. More than 800 million different online users visit this website
each month. The majority of the company's earnings come from Google
AdSense. YouTube was the second-most visited website in the world in
2016. However, this provider's services are not available in other
nations, including Pakistan and China.
 Sling TV
Dish Network runs this OTT American TV service, which debuted in
2015. Over-the-top is referred to as OTT. Sling TV, in contrast to Netflix,
focuses on enhancing the content that customers receive via video-on-
demand services. The corporate office is located in Colorado. The
business attracted 2 million subscribers in 2017.
 Disney+
Disney's streaming service was introduced in 2019 and has since grown
to be rather well-known. Numerous Disney films may be found on this
ad-free streaming service, along with many additional titles from
Marvel and Pixar. Even National Geographic material and the complete
Star Wars saga are available.
Strategic Groups & Positioning

Netflix is currently the market leader for consumer video streaming.

Compared to its rivals, the company has the most paying customers. Its
platform offers a wide range of content to draw users in. Its user
turnover rate is just 9%. (lowest in the industry). Additionally, Netflix
has created a number of well-liked original series and motion pictures
(e.g. House of Cards). Overall, the business has benefited from having a
head start in the video streaming industry. In October 2018, 37% of
Netflix streams (out of 63% licensed content) were made up of original
Netflix programming.

However, some of the well-known licensed content from Disney, 20th

Century Fox, and AT&T's Warner Media will stop in Q4 2019 since either
the license agreement is ending or they are intending to enter the video
streaming industry. The distribution of Netflix, Fox, and Disney original
television programmes in the USA is shown below. As can be seen,
more Netflix original (non-Marvel) material is being seen, but it will still
be a challenge to replace the well-liked licensed programming.
Figure 1: Netflix licensed and non-licensed viewing distribution.

The internationalization strategy of Netflix has also been successful, the company
has rapidly expanded into 190 countries with approximately 70 million users in
countries other than USA. In USA, the user penetration rate is 64 % and
internationally user penetration rate is on upward trend.
The regulation of "Net neutrality" will also be a key factor in the video
streaming industry. Currently, 15% of all internet bandwidth is
consumed by Netflix. Netflix streaming quality might be controlled by
ISPs, and they could tax Netflix to maintain the same streaming quality
if Net neutrality is abandoned or made less enforced than it is now.
In conclusion, Netflix is currently the market leader for video on
demand streaming worldwide, but it faces competition from businesses
that have bigger budgets and more sources of income to cover the high
cost of content. In order to effectively compete and pay off its debt in
the foreseeable future, Netflix must lower the cost of its content.

Future of Netflix in India

Does Netflix understand the preferences of Indian customers? Although
the website features some of the top content from around the globe, it
does not feature any interesting Indian original content. In recent years,
its strategy in India, a market it freely admits it has struggled to
penetrate, has come under fire. The reason we haven't had as much
success in India frustrates us, but we're absolutely moving in that
direction, said Reed Hastings, co-founder and chairman, on an earnings
call in January. In order to reach a wider audience, Netflix cut prices by
18–60% across all plans in India just a month earlier, in December 2021.
Some of its 60 or so rivals even now offer annual plans that are less
expensive than its monthly subscriptions.

What then prevents Netflix from expanding in India? Analysts and

business insiders identify three major problems. Pricing that makes it
unaffordable for the majority of customers, particularly those in small
towns; content that primarily targets affluent consumers; and, finally, a
leadership problem.

References

 https://hbr.org/2018/10/how-netflix-expanded-to-190-countries-in-
7-years
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 https://www.recode.net/2018/2/9/16996958/how-to-watch-live-
stream-youtube-ceo-susan-wojcicki-code-media
 http://fortune.com/2018/10/02/netflix-consumes-15-percent-of-
global-internet-bandwidth/
 https://www.emarketer.com/Chart/Top-10-Countries-Ranked-by-
Netflix-User-Penetration-2018-of-digital-video-viewers/220373
 https://variety.com/2018/tv/news/netflix-looks-partnerships-
growth-no-plans-live-sport-1202942082/
 https://www.express.co.uk/life-style/science-technology/979412/
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 https://www.statista.com/outlook/206/100/video-streaming--
svod-/worldwide
 https://www.emarketer.com/Chart/Top-10-Countries-Ranked-by-
Netflix-User-Penetration-2018-of-digital-video-viewers/220373