Netflix domination | Marketing

Netflix is everywhere. Every other comment on social media sites are along the lines of 'having a netflix day' and 'anyone reccommend what to watch next?', it has certainly won it's status of being a household name.

The company was founded in 1997 as a DVD mailing site, and has now catapulted to delivering content directly to customers across a whole range of devices. One of the driving forces behind it's popularity is creating, and acquiring, all the must-see shows which are at the epicentre of work conversation today. Original shows like Orange is the New Black, Daredevil and House of cards are viewed by customers from all around the world. By 2016, Netflix is aiming to be available in an incredible 200 markets.

Netflix is beginning to gain world domination in the market, and below are five factors of their success:

1. Original Content

Netflix creates premium content, viewable across a whole array of devices at the convenience of their view, who can watch high-quality ad-free showers whenever they desire.

Netflix also put an end to the all day DVD boxset bindges of Friends, and transferred this to the digital world. Customers don't have to wait a week for their favourite show to release the next episode, full seasons are often watched in a single day (yes, I'm guilty of this), completing transforming the viewing habits of their customers.

2. Vastly available

The streaming service is available in around 81 markets and countries. The site is easily accessed online, needing only a simple subscription, a broadband connection and a computer/smartphone/tablet or even a smartTV device.

Showing its dominance in the US market, Netflix accounted for over a third of downstream traffic during peak hours in 2014, whilst competitor YouTube shortly followed with just over 14% of the market.

Netflix are looking to internationalise into China and are currently in talks with potential partners, including Alibaba and Wasu Media Holding, to distribute their service to over 4 billion people – after finding out the success of their original show House of Cards with the Chinese market.

3. Taking on TV providers

A Netflix subscription sets a viewer back £5.99 a month. It can be cancelled at any time with no yearly contracts in place, and it is this complete flexibility that is proving to be a major threat to TV providers.

It's proving to be a major threat to Pay TV providers who have traditionally roped consumers into lengthy, cumbersome packages.

Chief executive Reed Hastings previously said that “The age of broadcast TV will probably last until 2030,” adding it is “kind of like the horse, you know, the horse was good until we had the car”. Re/code analyst Michael Nathanson estimated that the 10 billion hours of videos streamed on Netflix last quarter may be responsible for the US TV networks 43% ratings decline.

4. Strategy to combat Pirates

Back in 2013, Netflix admitted it uses sites like (illegal download service) Pirate Bay to determine what content is popular and worth licensing from developers and producers.

Rather than condemning the people who are illegally downloading their favourite shows, Hastings said that they can “create the demand” for content, choosing to market the company as an easier alternative to using the illegal torrent sites.

“Netflix is so much easier than tormenting. You don’t have to deal with files, you don’t have to download them and move them around. You just click and watch.” - Chief Reed Hastings.

5. Move towards global content

At the moment, Netflix licences their content geographically, so what's available in one market could still be restricted in another - like how the US Netflix has completely different content to that of the UK's.

The company estimates that it has over 30 million paid subscribers in regions in non-Netflix regions, with an estimated 20 million coming from China. They watch the shows using proxy networks which hide their IP address, allowing them to view the service from other countries where it is not currently available.

Hastings said: "The basic solution is for Netflix to get global and have its content be the same all around the world so there’s no incentive to [use a VPN]."

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