Netflix marketing: what can we learn from the streaming giant?

There's no denying it, today we all have a mark of our hearts. Brand recognition strategies have taken over the market and, today, we can see more and more companies investing in strategic branding.

Obviously, this is not a coincidence. This is because the change in consumer behavior indicates to companies a greater need for connection between the public and the brand.

In fact, this is a strategy that works. Companies like: Apple, Sony, Microsoft, Samsung and other giants understood this well in advance.

Today, these companies have staggering numbers and have their fans spread across the world.

Another brand that has already conquered its space in the market is Netflix. The pioneer of the streaming market is currently the most loved platform among Brazilians.

This is a scenario that continues even with numerous competitors emerging in the segment. With Netflix being at the top of the most popular channels, the list is in the following order:

1. Netflix
2. Amazon Prime Video
3. Disney +
4. balloon play
5. HBO GO
6. Telecine Play

Even though it does not have the lowest value among competitors, the leader in the ranking maintains its unreachable number. But how is this possible?

That's what we're going to understand today. How does the way Netflix does marketing impact its success in the streaming market?

So, if you want to be inspired and understand all the details that lead to the success of this brand, sit back and play Good reading!

The idea behind the screens

Isaac Asimov, responsible for works such as Foundation e I steal, once said in a simple participation in a project involving military tactics, carried out by MIT, that the idea is the power to create a connection between cards placed on the table. In other words, a great idea emerges through identifying a demand and how a solution can be created from existing things.

Therefore, an idea can only emerge if you have the necessary control and maturity to see it among all the opportunities before your eyes. But why talk about it now?

Well… before measuring the strength that Netflix has gained through marketing, it is interesting to know more about the composition of this idea. Furthermore, this is a topic that shows how a successful business can emerge from a simple trip to work.

When Marc Randolph and Reed Hasting met in a parking lot to head towards the office where they worked together in Silicon Valley, it was difficult to believe that from that routine, something as grand as the platform we know today could emerge. Almost always, the ideas revolved around something like “a custom surfboard company”, or a “shampoo delivery service”, nothing that Hasting took too seriously.

The cinema market and video stores

Those who are time savvy remember how irritating it was to have to pay fines for late returns of a film at the rental store. But two guys from Palo Alto (Reed and Marc) created an idea from that. What if people could rent these movies without having to leave home?

Many challenges arose along the way, the cost of sending VHS tapes, for example, made the project unfeasible. However, new technologies emerged on the horizon (DVDs) that brought hope to the team that was already beginning to form. Furthermore, shipping time was another negative point, as people didn't have to wait days to rent a film, they could walk 15 minutes to a video store.

However, the film industry began to realize that the profit these establishments made on a single VHS tape was something to worry about. It was during this period that prices began to increase and rental companies entered a significant crisis.

All of this worked in favor of the idea that was developing between one meeting and another that the team, which was growing every day, was having in restaurants that were in the center of the journeys of the members who took the films to the screens of computers and cell phones.

How did Netflix come about?

There's no way not to know it. As we saw previously, Netflix is ​​one of the biggest streaming platforms for films and series today. Much of this is due to the quality of the productions, but the company's marketing is also highlighted among the public.

With the brand's resounding success, this is not a difficult question to answer. After all, its impact on the streaming market meant that the brand was always at the forefront of productions.

In fact, when we go to watch a film in theaters, we often don't worry about who is responsible for that production. However, this is practically impossible behavior when we talk about the Netflix phenomenon.

But how did the company come about?

Do you remember the time when we had to travel to a certain location to rent a movie? For those of you who aren't from that era, the famous video stores were once the peak of film consumption.

And it was at that time, in 1997, that the company emerged. By the hands of Marc Randolph and Reed Hasting.

However, in a short time the company began to innovate and present differences in the film rental market, pioneering a type of delivery of cinematographic titles.

In this way, it already presents a certain prominence in the market and among the public, due to the ease of taking advantage of its services and products.

It was only in 1999 that the subscription service appeared in the segment. Thus, customers could receive films and series in their homes for a monthly fee paid to the company.

Opportunities that emerged over time

We can certainly see in the midst of all these innovations that Netflix is ​​a company with great potential. Well, this was noticed from the beginning when the company received purchase proposals, significant for the time.

The first, in 1998, was offered by Bezos (CEO of the company's biggest competitor, Amazon), for the mere sum of US$12 million. In 2000, the company itself offered to lead the film rental market at the time, the giant Blockbuster, this time for US$50 million.

How did Netflix dominate the streaming market?

Well, we have already seen that the platform emerged and had innovation as the key to success. This continued for a long time and that was how it entered the streaming market, through innovation processes.

It was only in 2007 that we were able to see the first signs of the streaming era. At that time, DVDs were already losing ground in the segment, largely due to the new technologies that were emerging.

Like everything, the program began through attempts and investments in areas that might not be ideal for the moment.

First, the platform owners looked for a team that could create an algorithm, capable of supporting demand and delivering relevant content to the user.

At the beginning, operational development still caused fear among investors. It was after demonstrating the market potential and understanding investors that the business took off.

Netflix in Brazil

Here in Brazil, innovation only arrived in 2011. However, it soon became a success among the public, mainly due to the variety of titles it brought.

This is because the streaming channel had broadcast license agreements with several organizations, which have already developed their own streaming channels, such as:

• Disney;
• Sony Pictures Television;
• Paramount Pictures;
• Lionsgate;
• Miramax;
• MGM;
• Television;
• TV Bandeirantes.

Thus, the company today, in Brazil alone, has more than 19 million subscribers. Worldwide, this number reaches 220,6 million.

Ads on Netflix? How could this impact the company?

Not everything is flowers. The streaming market has been gaining more and more competitors, this is visible from the number of platforms that have emerged in recent times.

Thus, Netflix lost the advantage of being the pioneer in the market for the variety of prices, availability of different titles and, also, contracts that caused the company itself to lose many of its non-original works.

Today, it has become difficult to compete with prices such as Prime Vídeo packages, which allow access to the platform, as well as free shipping on the company's e-commerce and other benefits, for a price of R$14,90.

Or, with HBO's super productions that are already a huge hit among fans, such as: Game of Thrones, which received the title of most watched television program in history, with 13,6 million viewers watching the series finale simultaneously .

In fact, the numbers indicate the company's loss of potential, which could make the next steps difficult if they are not taken carefully and strategically. But what could change in Netflix's marketing?

Solution for Netflix through marketing

Recently there has been a lot of news about Netflix marketing announcements, it has never been so close.

You may have already heard about the Netflix subscription plan, right? If you didn't find out, that's okay, because the company is taking this new venture very discreetly.

But this is a scenario that is getting closer and closer. The proposal is to lower the subscription cost through a plan with advertisements between the content.

This way, the public has a more accessible option, and companies have access to a segmentation and advertising platform. Sounds great, doesn't it?

To a certain extent, yes. But there is a “however”: Netflix cannot yet determine which works will receive advertisements. Thus, the segmentation criteria, until now, are still uncertain.

Therefore, due to reproduction licensing, professionals who want to use the advertising platform will not be able to choose which titles they will be broadcast on. However, this is a detail that can be adjusted very soon, according to experts.

The biggest problem, seen by professionals who used the platform in their marketing strategies, is the price per ad, which promises to be the highest on the market.

There are still many points to be noted. The new model was expected to launch at the beginning of 2023. However, to anticipate the debut of the plan with advertisements from competitor Disney (December 8, 2022), Netflix intends to present its version in November 2022.

Netflix's biggest lessons about marketing

Ok, amidst so many changes in the market and a promising story, What sets the company apart now?

An extremely important point throughout its history was the way in which Netflix related to its customers, taking into account regional and even consumer characteristics.

In this way, creating a specific way of communicating, meeting the demands of each of your audiences. After all, as we saw previously, there are more than 220 million subscribers worldwide.

The company's marketing strategies, in fact, are worthy of great success stories. Additionally, your branding strategy can reference your business.

Do you want to understand how the company stands out in the marketing market? Continue reading!

Interaction with the consumer

I've already talked about Netflix's quality of service, after all, their method involves adapting communication to its user. Therefore, the company stands out in this regard.

In this way, transforming the streaming channel into a persona that speaks openly to its audience and, above all, interacts proactively with social media followers.

What can we call Netflix Marketing has established itself as a trend among companies in the segment and even in retail, as is the case with Magazine Luiza.

In addition to being able to define a tone of voice for certain regions, based on cultural characteristics, Netflix can be even more specific, establishing communication based on its user's consumption.

Who remembers the day when the platform served its customers as if they were in an episode of the Star Trek series? This was an iconic episode in which the platform transformed a situation in which the customer reported a problem into a true experience.

This even happens today, especially on Twitter, where the company tends to interact a lot with its audience.

The point here is: if you have a voice for your brand, you can adapt the tone to certain audiences. Thus, captivating you and keeping your followers engaged.

Users don't see a company, but Netflix, which is there answering their questions and participating in their games.

Mastery of social networks

Today, you can find the Netflix owner and its marketing strategies on all the main social networks, and for each of them, it has developed its own characteristic.

So, in the streaming platform Instagram you can see more interactive stories and posts, while on Twitter there is a certain dialogue with your audience, even on WhatsApp the brand is present.

On October 30, 2021, the streaming platform opened its communication channel on the messaging app. Allowing users to access stickers from their series with a few commands. In this way, enhancing the brand’s presence.

It's nothing new that, when a long-awaited series is released, the internet puts it on the agenda. And the company's role is to keep the conversation going for as long as possible. To do this, she makes good use of networks.

Furthermore, Netflix makes good use of memes, which reinforces your audience’s engagement. However, it is important to understand whether these resources can be used with your audience.

Also, don’t forget that social networks are lighter communication channels. Therefore, one of the company's lessons in this regard may be to offer less dense content. Furthermore, these means of communication are perfect settings to make your brand recognized.

In the case of Netflix, the use of content available in its catalog is highlighted in publications. However, this is something that can be adapted to your business, just understand what your followers are looking for on their networks.

Experiential Marketing

Providing an experience that has meaning and makes a brand remembered is a challenge for many companies. Many move away from this type of idea because of the investment required, others because of the work that involves meeting with potential clients.

Presence at fairs, for example, is a great differentiator for companies that are looking for ways to grow in their respective markets. But, in the case of Netflix, which already has great relevance, it needs to be the center of attention.

That's when the EVERYTHING, name given to the company's event that references the sound at the beginning of a film in its catalog. In it, we see several personalities coming together to talk about productions, new steps and, of course, experiences that take fans to a new stage of connection with the brand.

And look, here we don’t even go into the merits of influence marketing, which draws crowds of fans into closer contact with the brand and its productions.

Netflix Marketing for User Experience

In fact, as we can see throughout this article, one of the company's main focuses is user experience. We have observed this since the inception of the business to the present day.

But what sets Netflix's marketing apart so that its customers see it as one of the best options on the market, even when they see competitors with attractive differences?

Netflix studies for marketing

First of all, the customer is at the center of everything. In other words, marketing planning is done for users. This makes it much easier to reach them in a positive way.

Furthermore, since it arrived in Brazil, we can notice several changes in its layout. Whether it's a brand, catalog or subscription page, everything has been tested. These experiments aimed to understand what was most attractive to users.

Therefore, today we have a page with little information, unlike what we saw in previous years.

In this way, the company seeks to understand the trend among its users, to deliver facilities and content that engage. If you thought that everything we've talked about so far is just a marketing strategy, you're wrong.

All interactive posts, interactions, layout tests serve to predict what users are looking for. Therefore, we have the impression that Netflix is ​​always ahead of its time with marketing.

But, you can do this too. Establish organic communication with your customers and through the results, determine what can be changed or added. Furthermore, this is a good way to see your marketing planning from another perspective.

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