Case 2 Netflix Roller Coaster

Nate Davies
Jimmy Xu
Business 260 – Marketing
February 1st, 2018

Case 2: The Netflix Roller Coaster
        The marketing strategy of Netflix follows a fairly strict STP (segmentation, target, penetration) over a vast amount of the market. This is possible by being involved in a business who is used by virtually everyone. That is everyone, besides most likely the Amish, have and watch television in some facet whether it be through their phones, laptops or TV's. They have segmented their audience via age and demographic by offering specials services like a personal browser and kid orientated option. Their interface uses data mining to match you with shows you are more likely to watch and in turn spend more time using their product. They have also used social media and late-night television to create a following around popular shows such Game of Thrones. Unfortunately, some get a bad rap due to the actors involved like "House of Cards" with Kevin Spacey. The name is very ironic now.
       Other than matching you with existing movies and shows, Netflix is using the information its gathered on its users to create movies, documentaries, and other forms of programming. In 2018, the company has budgeted eight billion dollars towards new media. This a third higher than in 2017. It plans to release 80 movies from big name production companies like Warner Bros. and Dream Works. With the growing popularity of stand-up comedy, Netflix plans on releasing one major comedy special a week in 2018. It seems as if the rapid change in policy has had little effect on the growth of the company. Netflix is also expanding more globally with many new TV shows and stand-up specials featuring artists from Asia, Africa, central and south America.
      The way Netflix is handling itself is how it should sustain and grow its business. It is creating new value by making new shows and growing its market share by expanding into homes internationally. The piece the company should watch out for is how highly leverage it becomes by investing such an immense amount of money at such a rapid rate. Furthermore, I feel they should and will soon increase prices to generate revenue and cover their investment. I believe buyers will oblige such an offer due to the fact that Netflix has increased its value with more programming and customers will see and accept it. Finally, there is a SWOT analysis listed below summarizing this brief overview of the company's growth and investments.

S – It currently has roughly 75% of Streaming service television market share.
W – It leverage by large investments in new programming.
O – The streaming giant continues to be a platform for big name production companies.
T – You tube is growing as a competitor in streaming television.


References
https://techcrunch.com/2017/04/10/netflix-reaches-75-of-u-s-streaming-service-viewers-but-youtube-is-catching-up/
http://time.com/money/4985396/netflix-8-billion-2018-programming/

Comments

Post a Comment

Popular posts from this blog

Nate Davies Business 260-0004 Zhenning (Jimmy) Xu January 24th, 2018 Discussion Week 1 Responses 1. I walk into the produce section and am greeted by a bounty of fresh fruits and vegetables. This is an allure  and natural setting created by the store as a marketing technique. In the book,  The Omnivore's Dilemma  by Michael Pollan, the author covers in great detail the money spent to create this environment as well as how product placement has evolved over the years. For example, grocers always place milk in the back corner so you must walk to the entire store and more likely to then make a purchase. 2. Market basket analysis is a form of data mining that collects information and tries to predict how much, how often, when, where, and what brand of product you will more likely buy so a seller creates a funnel to push products. This is similar to ads posted on google chrome on the sides of some websites after buying a product off Amazon.com or simply searchi...
Read more

Week 12 Product Cycles & Surveys

Image
Nate Davies Jimmy Xu Business 260 - Marketing April 11th, 2018 Week 12 Chapter 12 Discussion: Product Life Cycle Observation: Top Graph Set - Playstation       I have not played video games in over ten years, however, when I say the Play Station 2 listed as a technology it gave me a sense of nostalgia. I was surprised to learn the release dates and units sold of the gaming systems. The Sony console's have a new release every six to seven years. This s the product life cycle of gaming consoles. The consoles have a useful life of ten to eleven years. Sony has done a great job pin point the soon decline in the latest console and unveiling a newer model. With this knowledge in hand, it is easy to comprehend by the next expected release for the PS5 is in 2020. Bottom Graph Set - Social Media       There are not as many clear patterns in social media. I was surprised to learn that the three companies chosen which include Myspace, Fa...
Read more
Nate Davies Jimmy Xu Business 260 - Marketing April 26th, 2018 Week 14: Landing Pages & Adobe Spark Part A URL:  https://spark.adobe.com/gallery/gallery-editors-choice/example/journey/      This page truly told a story. This format is perfect for someone who wants to chronologically explain a trip or process. This is why this landing page has such a broad application. It is hard to critique this page because it is very in-depth and  demonstrates how great of a tool adobe spark has and will become. The "call to action" for this page is sharing a this woman's journey with those who are travelers  or with aspiring adventurers. I also think this page is made to inspire others to travel as well as be insightful for using sitting in our comfy desk chairs and warm homes. After experiencing this person trip it makes you want to get lost even if you get a little anxious thinking about what they went through and realize how blessed we are in Americ...
Read more