What can Netflix do for Disney to expand upon their current Market?
What makes Netflix successful within their market?
Client strategy is the same in all regions. Netflix works with key CE makers to get the client on the most popular devices.
We are commercial-free unlimited-viewing subscription TV
We choose to be the best at our model, and to have our brand stand for commercial-free, unlimited viewing, low flat monthly fee.
What has Netflix done to adapt to change in that market?
Netflix successfully capitalized on the weaknesses of the traditional DVD rental business model. They were able to identify hidden opportunities that were a result of evolving digital technology, such as the transition from VHS to DVD videos.
Allow customers to rent all the DVDs they could in a month for a flat fee. Customers were allowed to keep the DVDs for an unlimited period of time and were not subject to late fees. In return, customers agreed to pay a recurring monthly subscription fee.
Recently Netflix released the growing number of customers streaming video content. The company added 380,000 net new international streaming customers, increasing the total to 1.86 million. Netflix lost 2.76 million domestic DVD subscribers, reducing the total to 11.17 million. And the company added 220,000 domestic streaming subscribers, upping the total to 21.67 million.
How does Netflix appeal to their customers?
We are counter-positioned against the hassles, complexity, and frustration that embodies most MVPD relationships with their customers. We strive to be extremely straightforward and simple. There is no better embodiment of this than our no-hassle online cancellation. Members can leave when they want and come back when they want.
We are about the freedom of on-demand and the fun of indulgent viewing. We are about the flexibility of any screen anywhere any time. We are about fantastic content that is increasingly only available on Netflix.
We spend over $450M per year on global marketing to attract people to try Netflix, and to reinforce with our members why Netflix is worthy. Our extensive content is key, as is the ability for members to have control over their viewing experience.
Customer centered approach. Whether the subscribers like it or not, Netflix has more information on their viewing habits than they realize. From what time they watch a show, to how long before you lose attention and jump to something else, they have all that information and more. That information allows Netflix to produce and deliver content that their subscribers would want before they even know it.
Variable pricing At $7.99 a month. A growing number of people are unwilling to pay an additional $14.95-20.00 a month to the same cable company that raises their rates on a regular basis without any clear reason.
We are currently spending about $350M per year on a wide range of efforts to improve our service and app, and we are constantly getting better.
One area is our core services: our streaming delivery, sign-up, billing and customer service, across more than 1000 devices being used in more than 40 countries. Here we strive for operational excellence to avoid any problems. Members want Netflix to just work -- flawlessly. On this front, we're well ahead, but we have plenty of room to improve. We continue to invest heavily to ensure that our service is always available, our streaming has a minimum of buffering, and has great audio-video quality.
We're now investing over $2b per year in content licensing and the creation of original shows.
People's tastes are very broad, even in a single market. The Internet allows us to offer a wide selection, and to have our user-interface quickly learn each individual's tastes.
How can Netflix help Disney meet their long term plans with this product?
How does Netflix plan to sustain product awareness?
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