5th October 2020

What Tech Companies Can Learn from Netflix

Netflix’s story, which disrupted the movie rental business, is well known to many. Through a unique approach to video streaming, the company has completely transformed itself into a leading internet streaming network. In 2020, Netflix has more than 192 million paying subscribers in more than 190 countries.

Let’s look at five big lessons your tech company can take away from Netflix.

Invest in original content creation

During the early 2000s, Netflix’s streaming was built around curating existing content from other sources. While this was a working model, it wasn’t a very sustainable one. When it comes to curating content, you cannot fully impact a company’s success since there are too many factors that are not under your control. Simply put, you don’t own the content you offer.

In 2011, Netflix announced that they would start creating their first original series, House of Cards. Later they created Orange is the New Black, The Unbreakable Kimmy Schmidt, Bloodline and other original, on-demand pieces of content that were lined up to be available via the streaming platform.

In fact, by investing in original content, Netflix found a way to give the audience exactly what they were interested in. Unlike the curation model, creating original content is a way to develop a self-sustainable way of generating revenue and acquiring new users.

Nurture your audience naturally

What Netflix’s marketing specialists know for sure is that gaining leads is nothing if they don’t actually use the service or simply cancel their subscription. To move users down the funnel, you need to nurture leads and delight your existing customers. You can do that by providing them with helpful, valuable, or educational information that will build their trust in your expertise.

Netflix excels in this aspect. They keep users connected and invested in the platform by introducing high-quality shows, series, and movies in a manner that feels natural and welcoming to their target audience. For example, upon logging in, users are greeted with ‘top picks’ tailored to their viewing history.

Moreover, Netflix demonstrates proficiency in digital marketing by keeping subscribers informed through emails, sharing updates, offers, and newly added content, both via email and on social media. Drawing inspiration from this approach, you can collaborate with a digital marketing agency to implement a similar strategy for reaching your target audience.

Be willing to adapt

Another factor that made Netflix number one in the entertainment industry was their willingness to adapt to trends and changes.

Back in 1997, the idea around Netflix was simple. They offered people to rent movies without the need to leave their homes. That was about the essence of their business model . However, instead of resting on their laurels like their competitors did, Netflix was able to transform. That’s how they started to offer streaming services to their users.

With the trend of users spending nearly 60% of their time online on mobile devices, even when it comes to real money games according to, Netflix embraced mobile optimization. They made user experience high-quality on every device be it a PC, a Macbook, a Smart TV, or an iPhone.

This example also gives us a clear understanding that digital transformation is not something that has a start and a finish. It is an ongoing process. Transformation never ends.

Staying competitive

Netflix works hard to outpass competitors such as Amazon Prime, Hulu, and HBO. One way to stay competitive is to seize good ideas on time. A great example is related to the animations that are signposted not with a Netflix brand but with the show’s main character in a children’s platform interface. This idea naturally came from a team member who noticed his kiddo saying characters’ names when asking to watch something.

What’s interesting is that Netflix is not driven by pressure to do things first. They’re obsessed with delivering the best watching experiences possible.

Adopt pricing policies

It’s a well-known fact that financial services in low-income countries are at a serious disadvantage compared to more developed regions. Netflix has become an example for many companies in this aspect. They offer services at different prices in different markets. In the United States, a monthly subscription for Netflix costs $7.99 per month. In contrast, a basic Netflix plan in Japan costs $5.72 while the same plan in Switzerland costs $14.90.

By offering varying pricing options, Netflix becomes the service of choice. Tech companies should definitely look for pricing methods to tag their products appropriately. This might be essential since the concept of pricing could be straightforward for customers, who might hesitate to pay more than the actual value of the product. Nevertheless, companies can use pricing methods such as Gabor Granger or similar survey-based methods, which involve asking potential customers whether they will buy a product or service at different price points. These tried and tested pricing methods could be perfect for companies looking to enter new markets.

Key Takeaway

Netflix is a brilliant example of a company with insights for different industries and products. From their branding and content to their business model, personalization approach, and service quality, the company has succeeded in making smart decisions thanks to their innovative marketing concept and dedication to research and metrics. Netflix has developed a deep understanding of their audience’s needs and preferences. This knowledge, combined with an affordable product, gives the brand a lot of opportunities now and in the future.

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