Netflix’s had a huge competitive advantage, their relationship with Hollywood, which was something that competitors could not easily copy. As well, Netflix is available on almost every device through wifi, generating an audience and distribution that’s tough to replicate
How Netflix acquired 200M+ paying customers The growth strategies used to become a global streaming giant A thread👇👇
1) Netflix (originally known as Kibble) was founded by Reed Hastings and Marc Randolph in 1997. What started as a physical DVD rental business became one of the biggest tv and movie platforms, studios, and streaming businesses
2) Strategy 1: Personalization at Scale Netflix leverages machine learning and AI to provide a personalized experience of suggestions based on your preferences. Powerful search algorithms provide users with unique experiences to capture as much of their attention as possible
3) Making their product not a one size fits all led to increasing engagement rates. The average number of daily minutes spent by US adults has grown 58% since 2017. Therefore as they learn more about their users, they provide better experiences that lead to higher engagement
6) Strategy 3: Focus on Pillars Their product strategy was developed around 4 key pillars. This allowed them to always make progress and move the needle in the areas that mattered most 1. Personalization 2. Original content 3. Watching experience 4. Interactive storytelling
8) GLE stands for Get big, Lead, and Expand – their long term product vision. For Netflix, this became a 10-15 year growth path for the future. This was initially leading in DVD distribution service, then leading the industry in streaming, and eventually expanding globally
9) Netflix’s had a huge competitive advantage, their relationship with Hollywood, which was something that competitors could not easily copy. As well, Netflix is available on almost every device through wifi, generating an audience and distribution that’s tough to replicate
12) This makes the experience exciting, thrilling, and addicting. Just like scrolling through social media, we crave what’s to see next. The human brain produces domaine when we binge watch, which Netflix learned and uses to their advantage They learned how to get people hooked
