About Netflix

About Netflix
Netflix has been leading the way for digital content since 1997
Netflix is the world's leading internet entertainment service with over 151
million paid memberships in over 190 countries enjoying TV series,
documentaries and feature films across a wide variety of genres and
languages. Members can watch as much as they want, anytime, anywhere,
on any internet-connected screen. Members can play, pause and resume
watching, all without commercials or commitments.
How Does Netflix Make Money?
Netflix’s main source of revenue is subscriptions, which cost between $7.99 and

$13.99 per month. This totals to about $950 million per month, according to the
company’s earnings report [No Longer Available]. It also earns about $30 million
per month through DVD rentals. The profit, or net income, is approximately $43
million per month.
Overall, the company earned $8.83 billion in total revenue in 2016, and is on track
to make over $11 billion in total revenue in 2017. Netflix does not make any
money through advertisements or commercials in its streaming service.
How Much Does Netflix Make in a Day?
Around $1.4 million per day.
Netflix is cagey with numbers about its daily operations, or about how much
content is being viewed. The best estimate is from the company’s reported
earnings, which showed $130 million net income in Q3 2017 (i.e. $1.4 million per
day).
This is only an approximation though and not a real figure. Plus, it keeps changing
based on every quarter’s earnings report. But it’s safe to say this trend should
continue, as Netflix expects more net income in the next quarter.
How Much Does Netflix Pay for Content?
It depends on the show, movie, or deal, but Netflix says, “We will spend $7-8
billion on content (on a P&L basis) in 2018).” The company also has $17 billion in
content commitments over the next several years.
This is total spending, though, which includes both licensing fees and original
programming. Netflix has been a champion of original TV series, and those cost
the company differently.
Distribution strategy in the Marketing strategy of Netflix –
While internet seems to be the main source for the brand to reach the
customers going ahead thus optimization across various mediums,
Continuous & seamless video streaming, facility of downloading available
on Wi-Fi or mobile network are some of the important features for higher
acceptability of the platform in the market.
Netflix works on providing the highest possible video quality on certain

Bandwidth and superior audiovisuals even in the patchy network. The site
is available on the website and mobile app.
Brand equity in the Marketing strategy of Netflix –
Netflix has climbed 31 places from the last year to reach 61 st place Brand
Z’s top 100 list. The brand has grown 73% in brand value from 2017 to
US$20.8 billion.
Over the years Netflix has projected itself as an innovator in the

entertainment Industry. Having a phenomenal brand value of $5.6 billion,
the subscribers of the brand world over seems to be growing exponentially.
As a part of the brand extension, Netflix has created an application named
Flixchat which will advertise essential message, logo, name, and
packaging.
Major competitors for the brand include:
1. Amazon Prime
2. Hulu
3. YouTube
4. Direct TV
5. Sony PlayStation Vue
6. HBO Now
7. Sling TV
8. Hotstar
9. TV Channels
10. Cinemas
11. Piracy (One of the biggest threat for the brand which dearly affects its
revenue across borders)
Environmental Analysis (SWOT):
Strengths: The ability to predict movies and shows through the ratings and
recommendation section of personalized web site, and the ability to on any PC,
Mac, or internet connected device from anywhere in the world are two major
strengths (Netflix, 2012).
Weaknesses: The time it takes to get a new movie or TV show into the streaming
queue, and the lack of ability to stream high definition video quality are two
weaknesses.
Opportunities: With the popularity of the mobile devices with internet

connectivity that are available, the demand for streaming videos will increase and
the low cost structure to provide streaming videos present great opportunities.
Threats: The negative publicity generated from the previous attempt to separate
the DVD and streaming products and the increased competition from retailers
pose a threat to this plan
Market analysis in the Marketing strategy of Netflix –
With the internet penetration and smartphone market growing exponentially

the market seems to be in a healthy state and holds promising future as
there pool of untapped market in the underdeveloped and developing
countries.
Talking about India with the government emphasizing on Digital India and
rural penetration of Internet and data revolution by Jio has resulted in a
drastic increase in the watch time per month by the customers in our
country.
In order to remain competitive in an Indian market, Netflix has already co-

produced a TV Series named Sacred Games in partnership with a well-
known brand like Phantom Films.
To further penetrate the Indian Market Netflix has planned to expand

its portfolio by including contents in the regional language like Marathi,
Punjabi, Tamil, Bengali, and Gujarati.
Customer analysis in the Marketing strategy of Netflix –
With the Online video platform becoming a trend among the youngsters
especially college going students and the early jobbers as it is easily
available on the go and can be streamed on mobiles and tablets anywhere
anytime. Customers of the company mainly include the ones who are tech-
savvy consumers and are in the age group of 15-40 years and those who
prefer watching movies and TV shows on the internet rather than on TV
which has a lot of unwanted advertisements between the broadcast.
Promotion Mix in the Marketing strategy of Netflix –
The major source of promotion for the brand includes social media
websites including YouTube. Being a globally well-known brand gives them
the edge of not going to intense advertising hence the brand prefers pop-up
ads, banners, hoardings and other static ads on websites.
In the past, Netflix has turned into high ranked celebrities as well in their
marketing videos to boost sales and profits.
Free trial for a month has been one of their promotional strategy to lure or
rather acquaint customers by making them try the service on a trial basis.
The brand also promotes its original TV series through teasers and trailers
on YouTube and by strategically placing Hoardings on Public places to
make people aware about their upcoming productions.
The promotional and advertising strategy in the Netflix marketing strategy

is as follows:
Netflix uses almost all media channels to promote itself and that too
through the content which it offers. Its first month free trial policy is kind of
a promotion activity to build brand awareness at first and then retaining
those who subscribe to it. After that month only, you have to pay
subscription if you wish to continue with Netflix as a customer. It makes
use of social websites like Facebook and Twitter as well. The use
commercial billboards in the offline mode. TVCs and print ads also help
Netflix showcase the various shows, latest movies etc which users can see
using the app.
The current prices should not be changed abruptly and proper

communication should be done before any changes. Promotional Strategy
• Continue 1 month of free trail and communicate in all advertisements
• Mobile texts once every month
• Focusing on digital marketing
• Sponsor events and film festivals
• Tie-ups with payment networks, telecom providers, D2H services, smart

TVs etc.

About Netflix

Uploaded by

Copyright:

Available Formats

About Netflix

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

About Netflix

Uploaded by

Copyright:

Available Formats

How does Netflix generate revenue?

How does Netflix generate revenue?

What are some of Netflix's marketing strategies?

What are some of Netflix's marketing strategies?

About Netflix

Netflix’s main source of revenue is subscriptions, which cost between $7.99 and

How Much Does Netflix Make in a Day?

Around $1.4 million per day.

How Much Does Netflix Pay for Content?

Netflix works on providing the highest possible video quality on certain

Brand equity in the Marketing strategy of Netflix –

Over the years Netflix has projected itself as an innovator in the

Major competitors for the brand include:

Environmental Analysis (SWOT):

Opportunities: With the popularity of the mobile devices with internet

Market analysis in the Marketing strategy of Netflix –

With the internet penetration and smartphone market growing exponentially

In order to remain competitive in an Indian market, Netflix has already co-

To further penetrate the Indian Market Netflix has planned to expand

Customer analysis in the Marketing strategy of Netflix –

Promotion Mix in the Marketing strategy of Netflix –

The promotional and advertising strategy in the Netflix marketing strategy

The current prices should not be changed abruptly and proper

• Continue 1 month of free trail and communicate in all advertisements

• Mobile texts once every month

• Focusing on digital marketing

• Sponsor events and film festivals

• Tie-ups with payment networks, telecom providers, D2H services, smart

You might also like