Netflix is one of the most well-known streaming services in the world. It’s easy to see why they have become so successful in such a short period of time. In this blog post, we’ll look at some of the strategies used by Netflix to become a global phenomenon. We’ll explore how personalization and simplification helped them grow, as well as their experimentation with price/plan combinations and ads/used DVD sales profits.
Personalization and Simplification
One of the major changes that Netflix implemented was increasing their personalization from 2% to 80%. This allowed them to better understand their customers’ needs and develop new features tailored towards those needs.
They also streamline their platform, making it easier for users to navigate and find what they are looking for quickly. In 2005, they even added a social interaction feature called “Friends” which allowed users to share movie ratings with each other. However, they also tested out a unique movie finding tool which failed due to lack of user engagement and interest.
Price/Plan Experimentation and Ads/Used DVD Sales Profits
Netflix experimented with different price ranges over the years, ranging from $9 US Dollars all the way up to $16 USD per month depending on the plan chosen. Additionally, they explored ads/used DVD sales generating profits but killed those off eventually as they started focusing on streaming services instead.
Conclusion:
Netflix has come a long way since its inception in 1997, becoming a global phenomenon thanks to its effective strategies that have been implemented over the years. By increasing their personalization rates from 2% to 80%, streamlining their platform for ease-of-use, exploring different price points for various plans, as well as experimenting with ads/used DVD sales profits have all contributed towards making them into what they are today—a leader in streaming services worldwide. Whether you’re a project founder or CEO looking for inspiration on how your business can grow exponentially—Netflix’s strategies are definitely worth exploring!
