Hi everyone,
I hope everything is
fine with you. In this new post I want to talk about one of my favorites
websites, Netflix. Well, I will not talk about how
great and wonderful this company is to put online movies and TV shows with
great quality, no, it is not about how good or bad Netflix is. This blog is
about marketing, and as I said in my first post, I will try to relate marketing
with two things that I really love, sports and movies (TV shows too). Since the
last two post were about commercials related to the Super Bowl, I thought it
would be a good idea to talk about something related to movies now, well, that
is how we got to Netflix.
Marc Randolph and Reed
Hastings founded Netflix in 1997 in Scotts Valley, California. The idea for
this company came to Hastings when he had to pay $40 in overdue fines after
returning an Apollo 13 way past the
day he should have done it. Because of that Netflix was founded, a company that
rented DVDs like any other company. However, in 1999, they introduce the
monthly subscription concept, where the consumers would pay a fixed monthly fee
and they have the right to rent one to three DVDs at the same time, the
subscribers can keep the rented disc as long as they want to, but there is a
limited number of movies that you can have at the same time, as I said before,
therefore the consumers would only receive a new movie when they sent back some
DVDs.
 |
| Reed Hastings, Co-founder and CEO of Netflix, holding DVD packages. |
This was a successful story,
however while Netflix was growing fast the DVD sales fell from 2006 to 2011,
this led Netflix to think about changing their business model, so they started,
in February of 2007, to stream movies online, basically the business the
majority of people know Netflix for. I do not need to tell you guys, how
successful this strategy was. This was a great
business strategy by Netflix, they saw a tendency in the market, since the DVD
sales were dropping, and they realized it was time to change things, otherwise
they would probably not be as successful as they are nowadays.
In 2011, Netflix came
up with a new strategy and started producing their own programs, starting with
a political drama named House of Cards,
which premiered in February 2013, and now it is in their third season, this TV
show has some big names behind it, the leading actor is Kevin Spacey and one of
the producers is David Fincher, known for directing movies like Seven, Fight Club, The Curious Case of
Benjamin Button and The Social
Network.
 |
| David Fincher on the left and Kevin Spacey on the right. |
Now Netflix has a
great amount of shows, including House of
Cards, Orange is the New Black,
Hemlock Grove, Lilyhammer, among
others. They just made a new partnership with Marvel to produce five different shows, telling the stories of Luke Cage, Jessica Jones, Iron Fist,
Daredevil and the team of heroes The
Defenders. What is more interesting about this new business from Netflix is
that they basically have a marketing research in their own website, because
people rating the shows and even make some comments on Facebook, about
different shows, therefore, Netflix can see what people like more and can use
that to make their shows based on that criticism of their own show and shows
made from different companies.
Well, that is it for
today guys; I hope you have enjoyed this brief story about Netflix. Feel free
to leave a comment about Netflix, or anything that you want. See you guys in
the next one.
Take care,
Leo.
References:
https://pmcdeadline2.files.wordpress.com/2014/05/netflix-logo__140509172739.png
http://conniedieken.com/images/uploads/blogimg/reed-hastings.jpg
http://gratiswelkomstgeschenk.nl/wp-content/uploads/2014/11/Gratis-netflix-bij-abonnement.png
http://www.hollywoodreporter.com/sites/default/files/imagecache/modal_800/2011/03/fincher-spacey-2011-a-l.jpg
http://www.imdb.com/name/nm0000399/
http://en.wikipedia.org/wiki/Netflix
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