We all know about the streaming giant Netflix, simply because it is now a part of our everyday life. How a DVD rental service transformed into a world-class brand amassing over 70 million subscribers, is a revolutionary story. Today, we’ll be looking at Netflix as a brand and how it became the titans of the industry.
Netflix was conceptualized by the CEO, Reed Hastings, who shares his inspiration that he had to submit a late fee for a DVD. That led to building Netflix in 1997. Also, March Randolph, who is the co-founder, shared that he wanted to build “Amazon.com of something.
Back in 1997, Blockbuster was highly in demand, and it had a $50 million valuation at the time. With the rise of Netflix, Blockbuster plummeted, making Netflix the up-and-coming contender. Now it is the market leader.
If we list out the best movies on Netflix, you’ll find so many of the originals nominated for Golden Globes, Academy Awards, SAG Awards, and more. So, let’s take a step into the features and talk about what makes Netflix the global streaming giant that it is today. There are great lessons to be learned for entrepreneurs or people in general.
1. Consumer understanding
Netflix Originals, which is their production house, has dedicated a chunk of time and effort to understand the crowd. This is why, Netflix’s recommendation system gives us the kind of content we want, at the top. Their market research is commendable, and the new releases are becoming more relatable and hilarious.
It is a fact prepared by Thrillist that out of the top TV shows listed today, Netflix production is responsible for at least 25% of them. Their algorithm keeps getting upgrades and the app is designed to be minimalist and efficient.
2. Use of social media
Netflix’s marketing capitalizes on social media irrespective of its customer base. On major social channels like Facebook, Instagram, Twitter, etc. you find their team, hard at work, responding and posting quirky stuff and remarks. Their social media handle feels like an interactive channel more than just a generic poster.
In this Internet Era, anybody who’s not building online or isn’t associated with the online world is doomed to fail. If you’re a business owner or work in an organization, social media is a mandatory tool for success. When it comes to the successful use of social media, Netflix’s marketing deserves special recognition.
3. Brand Image Consistency
When it comes to brand design and consistency, Netflix is a prime example. The service’s brand look has been recognized for its simplicity by the Global Brand Simplicity Index. An important lesson to learn here is one of rebranding.
Netflix has rebranded over the years, but the adjustments made have modernized and simplified the design. The originality of Netflix is still maintained and can be seen in all the past logos. The lesson of brand consistency through minor adjustment is instrumental as the logo is now recognizable by the world.
Its logo on social channels is a simple red text bent on a black background. The choice of color in the logo is two shades of red, which looks appealing on other colored backgrounds as well. The symmetric look of the letter ‘N’ in ads and posts, goes to show you why Netflix is the king of simplicity.
The way of the future is paved by not those who know, but those who can unlearn and relearn. Any successful company existing from the 90s today has the trait of adaptability. Netflix is another fine example of this trait.
In 1997, it was a DVD rental company. It was not long that they realized the importance of online businesses and decided to become an online DVD rental company. Things escalated further and more and more features came online. It was then that the concept of “Netflix and Chill” swept the internet as a powerful movement from cable to on-demand streaming.
Netflix revolutionized the streaming industry, and many migrated to the online world fast, especially in the pandemic. When Netflix envisioned the need to adapt to the change, they did, and it paid off so well for them. At the start of the pandemic, Netflix saw a surge of subscriber growth and it would not have been possible had they not adapted and adjusted.
5. Original Content Production
As a world-class brand, Netflix needed more control. Partnerships and collaborations with production houses and industries gave them excellent features to stream. While they were grateful for the plethora of content they got to update, there was a lack of control over the quality.
That is when Netflix launched its own production house. It was then that the world saw marvelous features like Birdbox, Stranger Things, Orange Is the New Black, etc., and fell in love with Netflix Originals. From these early releases, they have gone on partnering with excellent directors, producers, writers, actors, and cinematographers to empower their production house.
The Audience of Netflix is already hyped for releases like Don’t Look Up which already has the best and brightest of Hollywood like Leonardo DiCaprio, Jennifer Lawrence, Meryl Streep, Cate Blanchett, Jonah Hill, Timothee Chalamet, Ariana Grande, and more. It even has the award-winning director Adam McKay at the backend, all representing the power of Netflix Original Productions.
Netflix has proven to be the best and ever-growing streaming platform in the market. It was estimated that the surge in the subscriber base would slow down in the last quarter of 2021, but Netflix has achieved its quarterly goals, way before the end of the year. This goes to show us the importance of brand, decision-making, and quality in building a global brand.
With the number of features already in the pipeline for viewers of Netflix, it is safe to say that the existing customers will stay, and the new ones are on their way. Netflix has even released games on its platform. Pretty soon, they’ll be the dominating force in all award shows and entertainment overall.