Success stories {U24;D1}

Learning Outcome 1 (U24): Understand the products that are produced within and across media industries

Unit 24, D1 Discuss how successful media concepts have been positively exploited across multiple media industries

Netflix

(screenshot from google)

Introduction to Netflix

The brand/concept that I will be discussing for this task is Netflix. Netflix is an American based media-service provider. They are the world's leading entertainment service, providing content for over 139 million subscripted members over 190 different countries. 

The base number of devices that it allows to be watching content at the same time is one or two. However, with a slightly more expensive package, Netflix allows you to have four different devices playing content at the same time. This makes it easy for families or friends to share an account, being more cost effective for them and increasing customer satisfaction.

In addition, a regular membership which only allows one stream at a time in a non HD quality was $7.99 but is being increased to $8.99 a month.

The most popular plan of two HD streams at a given time was $10.99 a month, however is now being increased to $12.99.

Lastly, the most premium plan, allowing four 4K HD streams is increasing from $13.99 to $15.99 a month.

Netflix have spotted the opportunity to increase their prices due to the massive demand for the easily accessible streaming ad free website. This market penetration from Netflix have given them the ability to charge more for their product, as it is seen as an essential product for many to have on a regular basis.

Due to Netflix being the number one entertainment service, they need to ensure they have all the latest and most trending TV series and movies available for all different people to watch. Films and programmes transcend any race, gender or interests, therefore the target audience for Netflix is one of the most ranged and varied audiences that. any business can have. This requires Netflix to have a huge mix of different shows and movies to ensure all the different target audiences are satisfied with what choices they have to watch. 

How Netflix target audiences:

Netflix target different audiences in a variety of ways once they are already customers and have memberships. It is important to do this because Netflix need to protect their subscriptions and secure that all their customers are loyal and satisfied with their product.

A great way Netflix target audiences before they have even watched anything is through the 'what do you like' section. When signing up for Netflix, you pick some genres that you prefer when watching a movie or programme, so Netflix can push those sorts of products at you. This is a perfect way of targeting audiences with particular products even before they have watched anything. This data solely will help Netflix understand the customers wants and needs, therefore making them feel valued even before the use of the platform.

Once the customer has watched a couple of films or programmes, Netflix do a 'because you've watched 'XXX', we recommend 'XXX'. Netflix uses an algorithm based on shows and films that you have previously watched to produce a percentage rating for each of the thumbnails on the site so that you can tell how well suited they are to your likes. They also send email shots tailored to the individual with recommendations of content they might enjoy. This is an excellent example of below the line advertising. This is a fantastic method of getting customers to watch more programmes and increase satisfaction because the customer is able to watch something they enjoy, and it makes them feel more valued as Netflix are interacting and engaging with them. 

(screenshot from Netflix)

In addition, due to the reasonably high pricing of the subscription, the method of recommending new programmes to the audience is extremely effective. This is because if the customer runs out of films or shows they want to watch, they may feel like it is either time to end the subscription, or it is not worth paying the price to carry it on without watching anything else. The tool of recommending new programmes enables the customer to find alternative movies or programmes that they may not have found or watched themselves as a result of this technique.

                                                                                          (screenshot from Netflix)

Furthermore, there is a set up page when creating a Netflix account which enables you to manage and set up different accounts for different people sharing the same Netflix subscription. This may not seem like it is a way targeting audiences, however there are particular settings used which have a targeting affect on which account is used. For example, a parent or guardian can instal a password protected account for the children to use, preventing them from watching anything inappropriate or over their age limit. This not only leads to targeted movies and programmes within their age range, but is a legal issue which stops kids from breaking the law.

Netflix use an online service for their customers instead of physical copies of movies or programmes. This is because they use converging technology to be able to make it easy and accessible for customers to log on online and watch whatever they want with their video on demand (VoD) service.

Netflix charts and graphs

(google image)

The graph above indicates Netflix growth in subscribers from the year 2012 all the way through to 2018, both in the United States and internationally. Analysing this graph would suggest that there has been a very consistent and steady growth in subscribers throughout the whole six years. This implies there wasn't a specific year Netflix started becoming very popular, but it has unwaveringly increased throughout. This is a positive for Netflix because it suggests their service is becoming more and more popular every year, instead of it just being a current and temporary trend. Starting with around 20 million subscribers globally in 2012, they gained up to over 78 million internationally and over 58 million in the US by 2018.   This illustrates drastic improvements Netflix have made during this time, and the constantly great content in order to gain this number of subscribers and the reputation they have.

A big cause of Netflix gaining so many subscribers during this time is because of the change from going out to buy or rent a movie to being able to easily watch them online. This is where Netflix got their video on demand advert free service from, which generated a huge interaction. By having everyones favourite movie or TV programme available to watch at any time without adverts, people jumped on the of purchasing a subscription. From then on, advertising and word of mouth have gained them an extremely good reputation, leading to a massive influx in customers and subscribers, helping them reach the overall 150 million subscribers globally in 2018 (as seen in the graph).

(google image)

This graph illustrates which platform most people from different countries sign up on and then where they most view the content on Netflix. It shows most people from every single country (apart from Thailand) sign up using a computer/laptop device. This suggests it is most easiest to set up an account subscription on this type of blackbox. However, despite most subscriptions being set up on these devices, most people watch the films or programmes on a TV. This implies people prefer to watch on a bigger screen and log into the device separately although they set up on a computer.
Globally, 70% of people view Netflix on a television which doesn't just suggest people would prefer to watch on a television screen, but implies people may not have a whole host of devices to watch Netflix on. Despite being able to afford a monthly Netflix subscription, they may not be able to purchase other blackbox devices such as laptops and tablets.
In addition, there is a big range of ways people signed up globally, with a phone, computer or television. This implies Netflix have an accessible service which allow you to sign up on any blackbox device very easily. Whatever device is most suitable for the individual signing up would be used but the function of Netflix is consistently the same.

How the brand/concept is accessible

Netflix is very accessible for people to both sign up for a subscription and then once they have, it is also very accessible to watch.

(google image)

Purchasing a subscription is very easy and accessible. Being available on nearly all black box devices, Netflix allow you to sign up on the website whenever you want with whatever package you prefer the most. This and the fact that you can sign up on any device you wish makes it attainable and effortless to start a Netflix account. From the previous graph, we can understand that there are people all over the world who sign up to Netflix in different ways, for example via a computer, phone or television. This makes it a smooth and straight forward process for the customer wherever they are in the world, with what ever device they may own. This is a great feature of Netflix because it targets all demographics, maximising their target audiences and share of the overall market.

However, not only is it the signing up for a subscription that is so uncomplicated about the video on demand brand Netflix. Watching anything on the platform is one of the most simple processes there is within the film and television industry. The ad free and video on demand service they provide make it extremely easy to go on and watch whatever you want at whatever time you want. Similarly to signing up to a Netflix subscription, the customer can watch the content on any device they have. Using technological convergence, Netflix have made it accessible and functioning on many different devices to make it as easy as possible for the customer.

This method of being able to sign up and watch the content easily on different devices is extremely successful. Due to some people only having particular devices, they are not able to watch films and content on some sites, therefore Netflix have taken a competitive advantage by targeting all people on any. device. In addition, this doesn't only help people who only have specific devices, but creates ease for people who would rather use a more easily accessible device, such as a phone if they are not in the house. Netflix chose to do this because they target all people from different demographics. Functioning in 190 out of 195 countries in the world, Netflix need to cater for different peoples needs. By enabling the application to work on a range of different. devices, it helps to cater for people in both less economically developed countries and more economically developed countries.


The actual mechanics of the site add to the ease of the overall function of watching a film or programme. There are different ways customers watch content on Netflix which is why it makes it such an easy and successful concept. One way people can watch the content is through the search engine on the application/website. This enables the customer to easily find exactly what they want to watch if it is available. However, if the viewer doesn't know exactly what they want to watch, there are other ways they can find movies or programmes of their preferred genre. This is through a function on Netflix which suggests particular content to the viewer based on either the genres that they've picked they prefer when signing up, or based on what they have watched before, therefore recommending similar content.

This is a very successful approach which Netflix took to make it more convenient for customers to find content they want to watch. Although it is not an original concept, Netflix go above and beyond to help the customer discover new content, whether it is by genre or by relevant programmes they have already seen. Customers need to feel like they are getting their moneys worth out of the subscription or they wont want to spend the money each month, therefore finding new content is essential. In addition, by suggesting films or programmes to customers, it makes the customer feel like they are being given a personalised treatment, ensuring they are valued to Netflix as a business.

How is the brand/concept advertised?

There are a few ways that Netflix have been advertised in the past. Due to their brand being an example of technological convergence, they use suitable adverts to keep a consistent technologically advanced theme.

(youtube screenshot)

One method they use are video adverts for either Netflix as a brand or for specific television series or movies. These are uploaded onto Youtube or other social media platforms to gain a very large viewing in order to gain as many new subscriptions as possible. In 2014, Ricky Gervais paired up with Netflix to film a clever advert, focussing on being as relatable to the. customer as possible. By making an advert where the viewer 'becomes part of each programme', Netflix make customers want to watch more series and films because they want to experience the feeling of almost being involved as a character. In addition, it also relates to customers due to the mentioning of binge watching and the aspect that people watch so much that they feel like they are in the series world instead of the real world. This method of advertising is very engaging, but also targets all different ethic and social groups, being an effective piece of marketing for Netflix.

An extremely clever way of advertising and marketing for Netflix is through their social media platforms, such as Facebook, Instagram and Twitter. Netflix uses these very effectively in order to relate to customers and make them feel more valued. This is a fantastic strategy because it keeps the audience satisfied and updates them on anything new there is to watch. This is therefore not only effective for Netflix targeting new audiences to drive increased subscriptions, but maintains their current customer base and ensures people feel it is still worth paying for their subscription.
This Instagram post pictured demonstrates Netflix effectively relating to their followers and customers. The caption is used to make customers engage and interact with the post which acts as a very impactful piece of promotion for Netflix.





(google image)

However, Netflix do also use some traditional forms of advertising. For example, their extremely effective billboard campaign in 2018. To not only target younger generations who are constantly online and viewing social media and web adverts, Netflix had to be clever with their advertising. Having one of the largest target audiences any brand has, Netflix have to find solutions in order to target all people. These billboards can be seen by anyone passing them, targeting a huge range of different people, which is why Netflix have also branched away from online advertising to have them.

In addition, due to them not having a specific series or film on them, it allows them to target anyone who is interested in watching entertaining content. The huge logo and inspiring message suggests Netflix are a powerful and innovative brand with a strong foolproof concept. The main reason Netflix use these adverts is to expand into different target audiences, gaining more customers who purchase subscriptions. This is why the main focus of these huge billboards is the logo, increasing familiarity and reliability of the brand in general.

(google image)



In addition, another non-traditional method of advertising Netflix used was a full page advert in the newspaper, promoting their new series, Narcos.
Cleverly, when a series with great potential from a large target audience is released, Netflix jump on the ability to promote it and gain maximum engagement for it. With comments/quotes from many well renowned programme reviewers at the top of the page, Netflix is proving that it is both a great series to watch, but how they are also an extremely reliable and dependable video on demand service for any customer.

In addition, by using a newspaper as promotion, they are targeting older generations who may not see their social media posts. This covers all ground for different target audiences, and encourages older people to also subscribe to their brand/concept, because they have content for every generation available.



There are many other converging technologies which both positively and negatively impact and affect Netflix. For example, the new phenomenon, Alexa, which is a visual assistant which does specific acts on a device for you at your voice command. Netflix have paired up with Alexa to ensure people are able to control the Netflix application through their Alexa device. This means the customer can ask to put on a specific programme on Netflix just through asking Alexa.

Another converging technology which Netflix is in conjunction with is a Smart TV. This is a new developed programme which allows you to go virtually wireless, and most importantly, access content from streaming platforms, such as Netflix. This drives increased subscriptions from people with a Smart TV due to the availability of the function.
However, there are also disadvantages to converging technology for Netflix, such as the advancing competitors in their market. With Amazon now having a whole host of different programmes and films available with Amazon Prime, people are inclined to use them as a website to watch content. This could be due to them preferring the content on Amazon, or because they have added benefits from Amazon Prime, such as free books and free shipping on Amazon orders. This would have a negative effect on Netflix market share, but they are yet to see scalable downfalls.

(images from google)