Netflix Business Model

Pizza, wine and Netflix.


Netflix and chill, I’m sure most of you have heard that. Yeah, Netflix is the new trending these days. You know what I love, it is when I get back from work, I grad a pizza on my way, I get home, took a shower and put my Pjs on and then I’m in front of my television, Netflix, my glass of wine and pizza. So let’s have a look where the history started. Back in 1997, in Los Gatos, California, two American entrepreneurs Reed Hastings and Marc Randolph founded a media-streaming and video rental company, Netflix Inc. In 1999, Netflix started to offer an online subscription, that is subscribers would choose movie and television titles from the website and a DVD would be nailed to the subscriber along with the prepaid return envelopes.

It was in 2006 that Netflix improved it recommendation system. Further in 2007, the company launched its streaming service, Watch Now with 1000 titles. In 2010, Netflix extended its services to Canada. It continues its expansion in 2011 to 2015 in several countries such as the United Kingdom, France, Germany, Austria, Ireland…

By 2016, Netflix became available worldwide, bringing their streaming service to 190 countries. I am sure most of you have heard of the TV Show Stranger Things which became an acclaimed and award-winning phenomenon around the globe. In addition, in 2018, Netflix premiered its originals films and TV Shows worldwide.

Netflix Marketing Mix

Netflix Product

Netflix offers 3 plans with different access to their content : Basic Plan, Standard Plan and Premium Plan. Other than, its original content, Netflix also offers other films and TV Shows by acquiring broadcasting rights.

Netflix Price

According to the different content, the price range is from $7 to $12. And based on the plan you take, you have additional benefits.

Netflix Place and Distribution

Netflix is an online streaming service making its availability around the globe.

Netflix Promotion and Advertising

To promote itself, Netflix offers a first month of free trial so as to build awareness and increase the retaining rate. Moreover, Netflix makes use of social media to promote its content.

Netflix Competitive Advantage

The leadership skills and abilities to offer its audience what they want have resulted in Netflix being ahead of its competitors. Let’s have a look at some of the competitive advantages of Netflix;

1. Unique content

What differentiates Netflix from its competitors is that it offers something exclusive. Netflix has invested its resources in creating unique content that is only available on its platform. In addition, Netflix creates content for all its different categories of audience.

2. International service

Netflix has reached a global market. The company has successfully provided an international service adaptable to any region. And the fact that Netflix movies are filmed and directed in many countries have provided a diversity in terms of cultures and languages.

3. Innovation and adaptability

Back in the days in 1977, with its DVD rental service, Netflix has evolved and is adapting to today’s world and technology. They have always looked for new opportunities to grow and that would be beneficial for them.

What to Retain from Netflix Success

Netflix is customer centric, putting their customers at the center of their decisions. They have a team and online service that is always available and is ready to help a customer when needed. Moreover, with their originals, they have produced contents that are suited for all types of audience. What we can retain from the success of Netflix is that innovation is a fundamental key to success and making decisions while taking into consideration of customers wants is a must.


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