Netflix
Technology for Enhanced Productivity
Project for MIS540
The Task for the project
Table of Contents Introduction…………………………………………………………………………………………………………………..4
Business Problems………………………………………………………………………………………………………..4-5
Technology Solution……………………………………………………………………………………………………..6-8
Overview of the Technology Integration
Components……………………………………………………………………………………8-10
Conclusion…………………………………………………………………………………………………………………….11
References……………………………………………………………………………………………………………………..12
Introduction
Founded in 1997, Netflix offers online movie rentals of less than 1000 titles. Switching to a subscription model, in 2000, Netflix introduced a personalized movie recommendation system. By 2005, Netflix subscribers exceeded 4.2 million and began developing video recommendation algorithms. Finally, in 2007, Netflix started producing streaming services and original content. As of 2016, he has over 50 million Netflix subscribers. The story continues today with a global presence in the video-on-demand industry. Netflix’s marketing strategy is undoubtedly a guide for digital marketers worldwide. Knowing this digital media streaming company is above all others on the market is a learning experience.
Netflix’s target market is young, tech-savvy users and anyone with a digital connection. Netflix viewers come from different age groups and demographics. However, most viewers are his teens, college students, entrepreneurs, professionals, etc. Netflix is aggressively expanding and personalizing content to grow its user base. They separate the audience from children and adults based on maturity. Netflix is a great example of an integrated marketing strategy. Integrated, agile, and client-focused for maximum impact. Netflix follows a customer-centric model to provide a seamless experience. The platform follows integrated marketing for effective targeting and optimizes content marketing for data analysis.
Business Problems
Netflix has the following challenges that it must provide solutions for:
There are no more subscribers in the United States of America. Netflix already has about 47 million subscribers in the United States. It is made up of more than half of Americans. Netflix has exhausted the US market. (Jenner,2018) There is an urgent need to look elsewhere for loopholes and slowdowns in subscription numbers. To combat the slowdown, Netflix has raised prices. It is quite a hurdle.
The second problem facing its business is market growth confront. Earlier this year, Netflix announced an expansion to almost every major market outside of China. Before this announcement, Netflix operated in approximately 50 countries and had over 18 million international subscribers or customers. By taking the initiative to expand its business internationally, Netflix opens new potential subscriber categories. Still, onboarding subscribers for this new group or category took a lot of work. Netflix grew and dominated in the United Kingdom, Latin America, and Scandinavia, but smaller regional competitors emerged worldwide. Additionally, due to Netflix’s staggering international expansion, some countries have a significant shortage of its library compared to Netflix in the United States. (Hess, 2022). Netflix products are glamorous and unattractive in many of the newly launched markets. In addition, Netflix spends huge sums of money on acquiring the global rights to blockbuster content. As such, Netflix faces stiff competition.
Heavy reliance on Media Companies. Netflix’s value is closely tied to the value of third-party content. At the same time, these companies are competing for Netflix’s audience. As a result, it makes them reluctant to sell their content to the Netflix streaming service.
The short-term solution and competitiveness. Via online streaming, we have provided convenience to our customers, eliminating the long time-wasting of traditional companies. Disruptive innovation provides a whole new class of consumers at the bottom of the market with access to products and services that have historically been costly for consumers. Characteristically, Netflix offers a great example of disruptive innovation. Netflix’s mail-in subscription service initially didn’t appeal to Blockbuster’s mainstream customers, who rented new releases on demand.
Technology Solution
Let’s look at the five effective tactics of Netflix’s technology strategy that have led to its most disruptive business model. Use of customized content. Netflix exemplifies how personalized content can boost user satisfaction. Netflix knows what TV shows and movies its subscribers enjoy watching. So, it makes customized recommendations based on this information. It allows them to find their desired content without sifting through many lists. It also ensures that users are always receiving the most up-to-date content. Customization is important for online users because it improves their experience and increases their likelihood of returning to a site.
Make certain dynamic encounters. Netflix’s journey has been successful due to its multi-device strategy, which began with a DVD service. You can watch Netflix on your TV, computer, smartphone, or tablet with seamless content continuity. In addition, the company has no restrictions in meeting customers wherever needed. To increase user engagement, Netflix employs both online and offline promotion strategies. Whatever medium they use, their marketing strategy remains consistent.
Combine both marketing and technology Approaches. There are no two Netflix accounts that have the same interface or suggestions. The order of the recommendations is determined by user activity and is dynamic. They change the artwork frequently to keep it fresh. Netflix makes good use of modern technology. Increasing engagement, the platform is constantly adding new features. (Panesar, 2019). Machine learning is a proven technology trend that has the potential to take marketing research to the next level. Netflix’s Marketing Strategy benefits from the incorporation of ML into advertising.
Email messages, like any other marketing platform, must be tailored. It’s indeed erroneous to claim or presume that email marketing is extinct. Netflix is a great company making the most of email marketing. They are one step ahead of the competition by combining email campaigns with machine learning systems. It aids in the collection of more user data and preferences, which are then segmented into multiple user groups for more precise and effective customer targeting. As a result, email marketing can introduce Netflix to new users while displaying relevant recommendations to existing users. One important Netflix email marketing tip is to be creative and take risks. Those old boring emails would not have helped Netflix make such an impact today.
Improve Interrelations to generate a buzz. Netflix has employed the most effective content marketing strategy in the last decade. The company devises an out-of-the-box approach to capture users’ attention quickly. As a result, they are bringing unique products and experiences to the market. On top of that, the platform has a continuous communication channel to increase momentary awareness and recognition. The platform enables the audience to participate in the story and make choices. This unexpected move has the potential to revolutionize future television. The platform’s incomparable buzz keeps the user glued to binge-watching. Users are very engaged in the hopes of finding a happy ending.
Improve interrelations to generate a buzz. Netflix has employed the most effective content marketing strategy in the last decade. The company devises an out-of-the-box strategy to capture users’ attention quickly. They are bringing unique products and experiences to the market. On top of that, the platform has a continuous communication channel to increase momentary awareness and recognition. (Feld, 2019). The platform enables the audience to participate in the story and make choices. This unexpected move has the potential to revolutionize future television. The platform’s incomparable buzz keeps the user glued to binge-watching. Users are very engaged in the hopes of finding a happy ending.
Overview of the Technology Integration Components
With consideration of Netflix’s technological solutions, the streaming mogul still has new innovations in which they can employ for an enhanced user experience. The innovation we are presenting is one of group streaming embedded within Netflix. With this innovation, individuals can open watch rooms in which they can invite other subscribers to join, and everyone watches the same content at the same time. The invite can be shared in different ways such as email or in app invite; individuals can look up fellow subscribers by username, email, phone number of some other personal identifier. This innovation can also allow for customization of controls set by the session host. The host, when inviting everyone can customize which controls, they each hold, such as pause/play and fast-forward/backward. The host control or “ball” can be passed between those in the group session if an individual wants to take control. These sessions allow friends and family to connect with each other from anywhere in the world, whether that be different households or even different countries. When first rolling out this innovation, Netflix can begin on a local scale, only allowing group sessions with US IP addresses. If this proves a success, Netflix can open worldwide, allowing for content from other countries to be available.
With Netflix’s competitive marketing strategy, the company could use this innovation as a leading initiative to bring in new subscribers as well as maintain their current subscriber base. With Netflix potentially increasing rates after the new year, introducing this new component to the streaming service could give existing subscribers the initiative to remain loyal to the company; it would allow them something new to explore and utilize. Though this concept may already have its own platform, Netflix can embed it into its streaming services so that customers do not need to rely on a third party with their personal information. As Netflix currently tailors content customized to its users, they can employ the same idea with group sessions, saving groups and creating a history and suggestions for the next time the group begins a new session; this way individuals do not need to trust an outside third party with saving their personal data. Netflix could advertise keeping their users’ personal data secure as an additional marketing point to reaffirm customer’s trust in the company.
Product or Solution Scenario as Exemplified by Customer or End-User Population it Will Serve
The population in which this innovation will serve is that of the tech savvy market, the younger generation that utilizes the more complex aspects of the technological advancements around them. From their point of view, this innovation will introduce a new social network with a multitude of options for customization for each group session, an aspect of technology this target market seeks out. For those who would primarily use this service, it will allow for a more interconnected user experience. They may develop the option to invite individuals who share common interests, introducing individuals to new people to potentially develop acquaintances. This avenue of social networking can lead to making interpersonal connections across the globe where people can come together.
In this society where personal connections between individuals have declined, introducing a new type of social network can spark the need and desire for these lost connections. If this innovation were to successfully develop within Netflix’s streaming services, the company will be gearing its efforts toward this user population due to these needs the target market is so desperately lacking. Once an individual was to log into the service, he/she would be able to invite whomever they wish, select an to join an open session, or host an open session for anyone to join. These open sessions can be suggested by common interests or searched by genre. These customizable options are what will draw a market of tech savvy customers, demonstrating how Netflix is keeping up with technological advancements as well as remaining competitive in the streaming market. This competitive nature will be received by the target population the innovation will serve and draw in more users.
Conclusion
As a result, Netflix serves as a unique example and source of inspiration for many other businesses. They have done an excellent job in content, branding, business model, and product. In addition, market enthusiasts and students can benefit greatly from Netflix’s marketingstrategy.
References
Jenner, M. (2018). Netflix and the Re-invention of Television. Springer.
Hess, T. (2022). Creating the Conditions for Digital Transformation. In Managing the Digital Transformation (pp. 99-160). Springer Gabler, Wiesbaden.
Panesar, A. (2019). Machine learning and AI for healthcare (pp. 1-73). Coventry, UK: Apress.
Feld, H. (2019). The case for the Digital Platform Act: Market structure and regulation of digital platforms. Roosevelt Institute.