With a growing amount of more than 100+ million subscribers, Netflix is considered to be the Manchester of the binge-watching market. Having its precise video streaming quality, Netflix has some time tested seasoning methods of increasing the subscription levels. Netflix uses content marketing tactics to provide addictive content to its customers. With the help of content marketing techniques, Netflix offers the best customer engagement services. If a content marketer wants to learn the marketing strategies, they can research the methods followed by Netflix.
Competition analysis of content streaming platforms
Good content is what keeps the viewer engaged. And today we see more and more content streaming platforms popping up online streaming all kinds of contents from documentaries, movies, shows and more. But Netflix was probably one of the pioneers in this field and every other platform is just trying to follow suit.
so, what is it that sets Netflix apart from its competitors. Let us look at the content streaming industry and how things have changed and are likely to change in the future. Competition analysis using Porter’s Five Forces is an effective way to get the required market insights. These five powers investigation today in the business world is otherwise called – Porter Five Forces Analysis. The Porter Five Forces are -
- The threat of New Entrants
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat from Substitute Products
- Rivalry among the existing players.
Netflix is regularly considered as software for understudies since they can contrast it with different applications and make an advertising report. Composed beneath is a short examination of Netflix’s market research through Porter’s five forces:
Dangers of new entrants: New contestants in CATV Systems bring advancement, better approaches for getting things done and squeezed Netflix, Inc. through lower evaluating technique, lessening costs, and offering new benefit suggestions to the clients. Netflix, Inc. needs to deal with every one of these difficulties and assemble possible obstructions to protect its serious edge.
Bargaining power of suppliers: Providers in a predominant position can diminish the edges Netflix, Inc. can acquire on the lookout. Ground-breaking providers in the Services area utilize their arranging capacity to remove higher costs from the organizations in the CATV Systems field.
Bargaining power of buyers: When another item or administration meets a comparative client needs in various manners, industry benefit endures. The danger of a substitute item or administration is excellent if it offers an incentive that is extraordinarily unique to introduce contributions of the business.
Threat from substitute products: If the competition among the current parts in an industry is exceptional, it drives down costs and reduces the general productivity of the business. Netflix, Inc. works in a severe CATV Systems industry. This opposition negatively affects the overall long haul benefit of the association.
Contention among the existing competitors: Netflix, Inc. works in a severe CATV Systems industry. This opposition negatively affects the overall extended haul productivity of the association.
Five content engagement strategies
Every brand marketing company must learn these top 5 content engagement strategies mentioned below:
Originality is equal to Netflix
Every brand has its popularity because of its quality and originality. Similarly, Netflix owns the unconventional copyright of streaming original videos with remarkable quality. This single content strategy of Netflix increased the subscriber’s list from 94 million in 2016 to 130 million in the year 2017, allowing it to grow even more. The reason behind this is that original content is approached by customers all over the world. For creating original content, Netflix spends nearly more than $5 billion every year to invite new customers and to hold the existing customers as well.
Original content is the weapon used by Netflix in the market to gain more customers. Another advantage is that investing in original content helps them develop their marketing attraction without the help of a third-party interface. This approach allows them to get more return on investment along with customers continuously watching on Netflix.
Customer data for customer convenience
The underlying effort made by every company is to achieve giving maximum satisfaction to its customers. Likewise, Netflix also has that obligation to provide its customers with what they want. But it is difficult for Netflix to ask all 130+ customers their needs. The statistical approach of satisfying customers is being used by Netflix to conduct its business. To achieve this task, Netflix collects the information of its users to know their mindset. The customer data includes the storing of customer’s watch history and their search history to analyze their watching behavior allowing Netflix to use another one of its marketing strategies.
But how can a company store the customer data of millions of subscribers when videos are streaming all over the world? The answer is straightforward. Netflix uses Buffer’s third-party software to analyze the patterns of binge-watching of Netflix’s customers. Buffer uses the break in between the loading of videos, date of watching, watched contents, fast-forwarding, pausing area, playing area of the customers in the official app of Netflix.
Viral videos and contents will be famous only through certain happenings and through third party phenomena. But Netflix went to another step by establishing its contents to become more viral through various platforms. Separate experts are working for the viral effect on the contents of Netflix. Netflix has a knack for distributing viral content worldwide, and its contents about the shows are released in the forms of memes and stickers for the customers to read. Another advantage of Netflix is that viral content can be downloaded and can be used by anyone.
Netflix uses social media as the key platform to expose its viral content and videos for the viewers. The added profit is that this viral contents increase the visibility of Netflix all over the world. The bottom-line of this context is that it is necessary to support the virility of the contents worldwide. This is one of the most famous marketing strategies used by Netflix to maintain their profits worldwide.
On-Demand assistance to watch
Netflix is an all-rounder app working 24*7 all year. On-demand assistance is useful for subscribers to access their accounts anytime they want. Customers can watch in their free time according to their convenience allowing Netflix to obtain loyal clients. The On-demand approach never keeps its subscribers waiting if they need to recharge or to call customer services even at midnight. This is one of the reasons that Netflix has more subscribers than anyone. Like Netflix, every business provider needs to be available when any problem arises; otherwise, they might lose their valuable customers. If the business provider is not available, then the digital accessories must be accessible without any fault.
Top-Notch User Experience
The exciting feature of Netflix is the app interface while using it as it’s of remarkable quality and highly from others. There are many options for subscribers to go on with Netflix when they use it. Every category is easy to reach and can be opened easily. It also has the best personalization for its customers. Approximately, there are about 76,897 genres given by Netflix from vintage to trending movies list. During this situation, the content engagement service of Netflix comes into the picture. Customers can perfect a combination of guidance and information for them to use an app. Along with that, providing better customized and quality content can lead the customers to have a better relationship with Netflix.
Netflix has so many things to teach the future generation in terms of brand marketing. But the brand marketing is purely based on expressing the originality and frankness advocated in maintaining the digital entertainment industry. The porter five forces study on the content engagement of Netflix is also favourable. In short, Netflix is always focused on generating maximum customer satisfaction and continues to do the same.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
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