Brand offerings of Netflix Vast
Content Library:
Netflix provides an extensive collection of TV shows, movies, documentaries, and
more, spanning multiple genres, languages, and regions. This includes licensed
content from major studios as well as a growing catalog of international titles,
catering to diverse audiences worldwide. Original Content:
A cornerstone of Netflix's brand, its investment in original programming—like
Stranger Things, The Crown, and Squid Game—sets it apart from competitors. These
exclusives drive subscriber growth and retention, positioning Netflix as a content
creator, not just a distributor.
Recommendation Algorithm:
Netflix’s sophisticated algorithm personalizes the viewing experience by analyzing
user behavior (watch history, ratings, etc.) to suggest tailored content. This datadriven
feature enhances user satisfaction and keeps viewers engaged longer.
Secondary Data
Academic Article 1: Analysis of the social media strategy of audiovisual
OTTs in Spain: The case study of Netflix, HBO and Amazon Prime
during the implementation of Disney+
Academic Article 2: Highlights in Business, Economics and
Management
Problem: Declining Engagement and Increased Churn Among Existing
Subscribers
Increased Content Acquisition Costs
The competition between streaming services has driven up costs associated with purchasing
original content along with procuring licenses for established intellectual properties. This
places a significant cost burden on Netflix.
Technological Competition
Competing entities do not only battle with regards to similar content but with regards to
resource allocation to technological advancements to enhance their sites and provide a better
experience to users. This creates a need for Netflix to maintain a high level of technological
innovation.
Market Saturation and New Entrants
The over-the-top (OTT) market is increasingly being filled with new entrants like Disney+
and Apple TV+, both having significant resource bases and established content libraries that
heighten competition in winning subscribers.
Marketing Solution: Introduction of "Personalized Content Pathways"
Method 1: Enhanced Content Curation
Develop a sophisticated content recommendation system that goes beyond simple genre
matching. This system should leverage viewer data and AI to suggest content based on
viewing history, preferences, and even emotional responses to shows. Include a "Content
Curator" feature where users can interact to refine their recommendations.
Benefits
Increased User Engagement
With highly relevant recommendations, users are more likely to see content that is to their
liking, thus extending viewer time and enhancing overall satisfaction. This directly tackles
boredom and removes the feeling of having "nothing to watch," a major driver of user
attrition.
Discovery of Hidden Gems
Subscribers will discover movies or TV shows that otherwise would have been unknown to
them, thus expanding their own library of content and enhancing perceived value for the
subscription service.
Reduced Search Time
Minimized Search Time: A better recommendation system reduces users' search times for
content to watch, thus reducing frustration and promoting a better overall experience.
Method 2: Personalized Viewing Pathways
Introduce personalized content "pathways" or curated playlists. For example, if a user
watches several true-crime documentaries, a personalized pathway suggests similar shows,
documentaries on related themes, or even fictionalized stories in the same vein.
Benefits Improved User Experience
Provides a seamless and intuitive experience by organizing and suggesting related content.
Users can seamlessly move from one related show to another, minimizing the need to search.
Increased Viewing Time
The curated playlists are designed to keep viewers engaged for longer periods, increasing
total time spent on the platform.
Enhanced Content Discovery
Pathways naturally lead viewers towards related content they might not have found through a
simple search, promoting viewing of more content than they might have otherwise.
Method 3: Targeted Content Acquisition
Use data insights to inform future content acquisition. If a segment of your users are
abandoning subscriptions due to a perceived lack of a specific type of programming,
proactively invest in acquiring or creating that content.
Benefits Proactive Needs Fulfillment
Addresses gaps in Netflix's content offerings that may be contributing to churn, directly
tackling a source of dissatisfaction.
Optimized Content Budget
By focusing on acquiring and producing content that directly appeals to high-churn segments,
Netflix optimizes its budget and minimizes waste.
Improved Customer Satisfaction
Directly addresses customer feedback and preferences, leading to higher satisfaction levels.
Method 4: Community Engagement
Build more opportunities for users to engage with Netflix's content community (forums,
interactive watch parties, etc.) to boost loyalty and a sense of belonging.
Benefits Increased User Loyalty
Fostering a sense of community increases users' emotional connection with Netflix, making
them less likely to switch platforms.
Valuable User Feedback
Creates opportunities for direct feedback from users, allowing Netflix to proactively address
concerns and improve its services.
Viral Marketing Potential
Positive community experiences can organically generate positive word-of-mouth marketing
and social media engagement.
Hypothesis: Can introducing personalised content recommendations reduce engagement
decline and churn among Netflix subscribers?
Experiment Design
Please imagine that you are browsing Netflix. While you are browsing, you see that your
homepage has recommended a variety of videos.
Condition 1: Personalized Homepage
You will receive a homepage that features personalized recommendations based on their
viewing history, preferences, and interactions. The content will include tailored playlists,
recommendations from the "Content Curator" feature, and contextual suggestions based on
emotional responses to previously watched shows.
Condition 2: Generalized Homepage
You will receive a homepage with generalized recommendations based on popular titles and
genre categories that are currently trending. You can discover genres that you are not familiar
with. This homepage will not consider individual viewing histories or preferences, providing
a standard experience that doesn't cater to specific user interests, but only promoting
mainstream videos.
To measure DV
How likely are you to renew your subscription to Netflix based on your experience with the
homepage recommendations? Response Scale: 1 (not likely at all) to 7 (very likely)
To check for other measures
How likely are you going to choose films that are not your usual preference? Response scale:
1 (not likely at all) to 7 (very likely)
Word count: 962 words
References
Martínez-Sánchez, M. E., Nicolas-Sans, R., & Díaz, J. B. (2021). Analysis of the social media
strategy of audio-visual OTTs in Spain: The case study of Netflix, HBO and Amazon
Prime during the implementation of Disney +. Technological Forecasting and
SocialChange, 173,121178. https://doi.org/10.1016/j.techfore.2021.121178
View of analysis of Netflix’s strategic issues, challenges and opportunities,
22 https://drpress.org/ojs/index.php/HBEM/article/view/14202/13773
