In 2021, Netflix recorded a revenue of about USD$29 million. Since Netflix first emerged back in 1997, the brand's value has steadily risen with each passing year.
Today, Netflix stakes a claim as a leader in the mass media, technology, & entertainment industry. One major reason why Netflix is able to maintain a leading position in the industry consistently is because of its well-formulated marketing strategy.
This marketing plan consists of key elements that make up the Netflix marketing mix. The financial success of this subscription-based streaming platform can be attributed to the way the 4Ps of Product, Price, Place, and Promotion are properly coordinated.
The Netflix marketing mix (4Ps) analysis in this post gives you an insight into those strategies adopted by this US-based company that has given it a competitive edge over its rivals.
Netflix Product Strategy
Netflix's product strategy is quite simple. Netflix is an online streaming platform that gives individuals paid access to a wide collection of TV programs and movies.
Netflix offers consumers an opportunity to watch TV shows, documentaries, limited series, and films directly from their desktop or mobile devices.
Customers can view content from as many as four different devices at a time and from a single monthly subscription. Netflix offers three membership and monthly subscription payments plans: Basic, Standard, and Premium.
The beauty of Netflix is that consumers do not have to worry about an advertisement or commercial interruptions while viewing content on the platform. Also, Netflix allows prospective subscribers to watch as many TV programs or films as they want before making any subscription payment.
Consumers do not sign any binding contract with Netflix. This gives all subscribers a chance to opt out at any time. Customers can come back to Netflix whenever they like and continue enjoying content without worrying about paying any cancellation or commitment fees, as is the case with other similar platforms.
The Netflix software is always up-to-date, ensuring a smooth, seamless, and fast streaming of content at all times. Netflix also engages in movie and TV series production. Some of the popular Netflix Originals, as they are known as include Orange Is the New Black, Narcos, Thirteen Reasons Why, Two Distant Strangers, Cops and Robbers, and so on.
Netflix offers a myriad of content under different categories. These categories include Action, Anime, Children & Family, Comedies, Crime, Documentaries, Dramas, Earth Day, Fantasy, Horror, Music & Musicals, Reality, Romance, Sci-Fi, Stand-Up, and Thrillers.
In addition to providing paid TV and film content, Netflix has broadcasting rights to provide online distribution services. Netflix delivers DVD rentals to customers while also ensuring that its online platform is updated with new content to meet the needs of a broad target audience.
Netflix Price/Pricing Strategy
Netflix adopts a Psychographic pricing strategy. Subscribers can opt for any one of three membership and subscription plans. As mentioned before, these include the Basic Plan, Standard Plan, and Premium Plan. The average monthly subscription payment for all three plans ranges from USD$7 to about USD$12.
The good news with Netflix is that customers are given a non-commitment one-month trial period. Within this time, prospective subscribers select a plan and provide their payment details. They will then be able to watch content and take advantage of all the benefits attached to their chosen plan. Payment for this plan does not occur until after a full month has expired.
Prospective customers can decide to opt out from subscribing before the month comes to an end, even after enjoying the services of Netflix. No customer is forced to pay for a subscription plan either by a commitment levy or mandatory cancellation fee. Netflix is affordable even to low-income earners, and payment is made in local currency at prevailing exchange rates (i.e., USD to local currency rate).
Netflix Place & Distribution Strategy
Netflix is available to virtually every country on the planet, with a few exceptions. Currently, over 190 nations worldwide are accessible to the audio-video content streaming services of Netflix.
Some of the restricted countries are North Korea, Russia, Syria, and Kosovo. You can access Netflix content on your Smart TV, PC, smartphone, or tablet device.
All you need is a good internet speed and access to Netflix via their website or app. With online access to Netflix, subscribers can avail themselves of all the services that this brand has to offer, depending on the membership plan subscribed to.
The internet offers no physical barriers or limitations. Also, Netflix no longer uses Geographic segmentation, which means that its subscribers around the world can have access to similar content at any point in time.
Netflix Promotion & Advertising Strategy
Promotion is an important element of Netflix's marketing mix. Currently, Netflix promotes its content and services using various media channels. For starters, Netflix allows anyone to try out its services for a full month for free without having to pay any commitment or cancellation fees.
Also, people can cancel proposed subscriptions (without paying anything) before the end of the trial period, even after test-running the TV/film content streaming site to their satisfaction. This is a policy that has endeared many people to Netflix.
Netflix uses several social media outlets like Twitter and Facebook (now Meta) to promote its brand. Online ads are also in play with new movies and TV shows advertised to attract new subscribers.
Outdoor commercial billboards and posters are also used by Netflix in some cases, especially when they want to promote Netflix Original content. For existing subscribers, Netflix machine learning and AI technology are able to recommend film and TV shows based on the peculiar demands of each customer.
Netflix 4Ps include Product, Price, Place, and Promotion. This online TV and film streaming platform provide customers with value-added content paid for via a monthly subscription plan. Customers get a free one-month trial period with an opt-out option that can be implemented at any time. Netflix uses a Psychographic pricing strategy offering user-friendly pricing to consumers in more than 190 countries around the world. Streaming can be done anywhere and at any time on Smart TVs, smartphones, PC, and tablets.
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Netflix Marketing Strategy & Marketing Mix (4Ps) by MBA Skool Team, August 10, 2021
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