Netflix shows just how effective traditional marketing methods can be
It may have only been a ripple in time, but Netflix was recently the most profitable entertainment company around—worth more than even Disney.
Last Thursday the streaming service behemoth was worth $153 billion, just edging out the beloved film company that boasts the likes of Star Wars, the Marvel Cinematic Universe and Pixar, at $152 billion.
The status quo was quickly restored, with Walt and co. flexing their animated muscles to regain top spot before the day was out—but it was the sort of news that would have the Genie retreating back into his lamp, or Snow White reaching for the poisoned apple.
It was also the kind of news that shows the power of successful and thoughtful marketing.
You’d swear it had to be a story Pinocchio tells you as his nose grows longer—but it was all true, and proof that with a few smarts, littlies can become biggies.
Netflix had humble beginnings as a mail-order service for DVDs in the early 2000s, and was even knocked back by Blockbuster for a paltry $50 million back in the day.
But perseverance paid off big time, and it is now the major player in the world of legitimate, online content streaming—leaps and bounds ahead of rivals like Stan and Hulu.
So, what has been one of the key components of Netflix’s marketing strategy? That word: ‘legitimate.’
“…it was the sort of news that would have the Genie retreating back into his lamp, or Snow White reaching for the poisoned apple.”
A decade ago the idea of anyone paying a fee—let alone a monthly subscription—for content they could get for free from file-sharing or torrent sites was laughable. It was so easy to source for nothing; why would people pay for it?
But, Netflix saw a possibility. It went back to Marketing 101 and found a niche no one else had. The powers-that-be analysed the target audience, researched what it wanted, and made it happen.
And it wasn’t revolutionary, it was straight out of the marketing textbook.
It exemplified the standard principles of marketing—the four Ps: Price, Product, Promotion and Place. This concept is designed to keep the customer as the focal point, clarifying the need for the product, its competition, where it fits in the market, and how best to make it known.
The four-P approach has been around longer than it took Sleeping Beauty to get some decent shut-eye, but it remains as relevant in modern marketing as it ever has—and is the sure-fire way to marketing success.
If you get the foundations right then the results should follow, and Netflix is a quintessential example—hitting all four Ps out of the lesser-known fifth ‘P’: the park.
Disney celebrates after regaining top spot.
Netflix knew people would be willing to pay for the content if it were simply packaged to them in the right way and at a reasonable price.
And the success is there for everyone to see. The company has its little ‘N’ on countless phones, tablets, smart TVs and computers in every home across the world. They are also creating some of the most compelling and original content out there.
All of this adds up to one hell of a competitor, and one that has even a franchise as massive as Disney looking over its shoulder.
For Disney, it may need to realise that the time of a ruler rises and falls like the sun—and that everything the light touches may no longer be theirs. It’s just the circle of marketing … um, we mean life.
And Netflix? Well, it just needs to keep on doing what it’s doing.
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At Dando, we’re big believers in smart marketing and the four Ps—so if your strategy could be a little more ‘animated,’ then we are Dando.
Contact us on 1300 932 435 or email@example.com.