Marketing Report for Netflix
David Silsby11/11/12 MKT 209 Product #1 – Netflix streaming video Netflix is a company that provides streaming movies and television shows to customers. It has two ways to provide the content it offers. One option is DVDs through the mail.
Another option is its streaming service. It has become very popular due to increases in technology for the home user. This paper will focus on the streaming product of Netflix. The streaming video service for Netflix is in its growth stage. The streaming service offers hundreds of movies, documentaries, and television shows.
Netflix charges $8 per month for the service.
Customers can watch media from their computer or television with the use of an internet connection. From 2004-2008 Netflix experienced growth of 40. 3% in terms of market share. Since then, Amazon.
com has entered the streaming video market. There is also increased competition from iTunes, an Apple product. However, Blockbuster, a competitor has filed for Chapter 11 bankruptcy. In October 2012, Netflix lowered its third quarter target for subscribers.
It initially forecast growth of 7 million new streaming customers.
Netflix ended the third quarter with 25. 1 million domestic streaming customers, according to its latest report. The company had 21. 7 million domestic streaming subscribers when 2012 began.
Netflix has created a product life cycle that has been thriving in the growth stage ever since it was created. They have currently captured 25 million subscribers who pay a monthly fee for access to a library of over a hundred thousand titles. The DVD title sales are entering the mature phase of the product life cycle, while the Blu-ray discs are still in the growth phase.
Internet streaming as well as streaming onto the game consoles has just recently moved past the introduction phase and has really started to grow. The ease and accessibility of online streaming has created a market that has much less cost than their current plan of mailing out all of their movie rentals, and it is the foreseeable future of the Netflix business model.
Netflix has DVD and Blu-ray discs of new releases, classics from all genres and time periods, and TV series.
Anytime streaming of a variety of new releases, classic movies, and TV series, directly to your computer, television, or gaming consol. Netflix is continuously working with studios to add more titles, including the deal with Warner Bros. , which will increase the number of titles Netflix has to offer. Netflix began with extensive advertising campaign in many different mediums. They have taken advantage of newspaper/magazine advertising, TV commercial advertising, and online advertising.
Web banners, ads on various websites, and “pop-under” ads are their most prominent form. These ads appear underneath the website one has recently visited, and have actually had a negative response from consumers. As Netflix has experienced significant popularity and recognition, there has been a drop in advertising campaigns. It now relies heavily on viral marketing. In a survey conducted by Neilsen Online and ForeSee/FGI Research, “over 90% of surveyed subscribers say that they would recommend Netflix’s services to a friend.
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