Netflix
It seems just yesterday Netflix was the go-to streaming service. Originating as the first DVD rental service in 1997, Netflix eventually transitioned into the pioneer of video streaming services. Their revolutionary take on video on demand prompted competition over the years. As of recent, these competitors have been driving down Netflix’s share within the video streaming service industry due to new market entrants, innovative technologies, and shifts in market demand. Now, like they have done before in the past, Netflix must innovate to stay ahead of the curve in order to regain a greater market share and retain returning users.
THE PROBLEM
Netflix is steadily losing market share within the video streaming service industry due to loss of customer loyalty given the change in market trends.
THE ASK
Regain a greater market share by increasing consumer interest, engagement, and patronage using a consumer-centric and innovative approach.
The Context
As of quarter four of 2022, Netflix had lost the majority of its market share.
Market share is dropping. What’s deal?
Although it may seem a bit out of place for video on demand (VoD) services to provide live television, Hulu, Prime Video, and others have made the jump. From Netflix’s brand identity, it makes sense to not delve into live TV as Netflix is centered around cinema and “binge-worthy” series. However, this does not take away from consumer trends — leaving Netflix to deal with the consequences.
To put it simply, Netflix is pretty expensive if you don’t want ads. Netflix’s relatively high price point has turned away potential customers and caused cancelled subscriptions.
Additionally, some streaming services have offered the ability to bundle. Capitalizing on the craving of variety when watching TV, Hulu, Disney+, and ESPN created a bundle. Unlocking Prime Video grants you the perks of Amazon Prime shipping — which is a bundle that will most likely never face any sort of competition in terms of likeness.
What Makes Netflix…
Establishing brand identity to guide the vision.
The Trendsetter
Netflix outlasted rentals through innovative thinking, paved the way for online streaming, and even pioneered streaming platform original series. Regardless of market share, Netflix is still the first at the top-of-mind when it comes to streaming services (in my humble opinion).
Diverse
Netflix has a great selection of international content from Japanese anime, to Korean reality shows, to Middle Eastern dramas. Netflix’s “Netflix Original” content plays a part in this as a multitude of producers from various nationalities create content specifically for their platform. The company also has The Netflix Fund for Creative Equity which funds external organizations promoting an equitable environment in the television and film industries.
User-Oriented
“Our members control what they want to watch, when they want it, in one simple subscription” as Netflix phrases it in their mission statement. Netflix holds true to this in their interface, as profiles have recommended “For You” content and profiles are able to save content to a watch later list. Netflix also listens to feedback as users can rate shows with a thumbs up and thumbs down system.
Strategic Idea
Improve patronage through more user-oriented content.
Drawing Inspiration
TikTok, Spotify, & Duolingo
Content on these services are different, but what they all have in common is “addictiveness.” Although not even proven to help improve language learning, users stay loyal to Duolingo due to its “game-like” achievements. What keeps users coming back to TikTok and Spotify is their “hyper-relatable” content — this is the stuff that populates your For You Page and Made For You Playlists. The copious amount and easily consumable nature of content consumed on both platforms contribute to their well-refined, relatable content on users’ feeds or playlists. Additionally, all of these apps have a unique approach to a friend network, TikTok being the most social, Spotify being the least social, and Duolingo being somewhere in-between. With all this in mind, let’s draft some ideas.
Interactive Content
Fundamental statistics tells us more relevant data permits more precise conclusions. Suggest better, more relatable, user-oriented content by creating more content. (Content to create better content… Content-ception).
Promote user empowerment through an interactive voting system. Every so often, have users vote on Netflix’s content. Voting can take the form of choosing: media that comes to Netflix, which media the user preferred after watching, media the user wants to stay on Netflix, or even which Netflix originals should be approved. Not only will this act as a source of user empowerment and engagement, but will also provide Netflix with important insights such as trends towards genres and directly tell what content specific users like.
The Trivia Crack thingy is pretty mid and I bet you didn’t even know it existed. Every so often on profile opening, have an optional quiz on popular shows, films, directors, or actors relevant to the user. The quiz shown is the general idea. Variants may look like “Think You Remember Your 2023 Binge?” “Who is Will Farrell in This Role?” or “Name the Quentin Tarantino Film.” For this I drew inspiration from my Spotify Wrapped when I thought to myself, “Wow, I really don’t remember listening to this much NewJeans.” In all seriousness, correctly constructing relevant quizzes will increase consumer engagement and thus loyalty. Consequently, quizzes could provide insights into KPI’s such as standout content for users.
FRIENDS
Obviously this is more abstract and is easier said than done, but Netflix is known for being a trendsetter.
Being notified friends are using an app prompts users to hop back into the app too.
Plus, friends tell Netflix who individual users relate to and likewise provide insight into how to achieve more relatable content.
Directly send friends movie or show recommendations.
Send timestamped moments in shows or movies to send to friends.
Share (or keep private) what the current binge is to friends.
Since a common “issue” for Netflix users is finding their next binge-worthy show.
“GAMIFY”
A language learning app does this to reel back in users, so why can’t a streaming service?
Promote loyalty by rewarding users with achievements. Watching a certain amount of Quentin Tarantino films grants a user an “Expert in Tarantino” achievement. Watch a comedy like Sausage Party followed by a heartbreaker like The Passing to earn the “Tears of Joy to Sadness” achievement. Achievements can be as simple as stickers for your profile icons or possibly even more specialized like director-cut content. Small incentives like this can keep consumer retention and loyalty!
Taking it One Step Further
Give people something to talk about.
Theatre Takeovers
Rent out theatres to show Netflix-exclusive content.
Give one free monthly ticket for premium tier members. Give discounted ticket prices for members. Non-Netflix persons pay full ticket price.
Give power to users by allowing members to vote on movies to be shown at pop-up.
Provide customers Netflix-themed goody bags with purchase of ticket.