According to Statista, Netflix has 207.4 million subscribers by the first quartter of 2021. During the pandemic, the on-demand streaming platform became the first choice for people staying at home. Binge-watching became a priority, and Netflix became the #1 app — even when there were competitors like Amazon Prime, HBO, Hotstar, and others. What led to this rise?
Many experts attribute this success to the pandemic. But many people understand that it was the Netflix digital disruption that hooked people to the platform. Accumulating paying subscribers is already a hassle. How did Netflix manage to increase its paid subscribers by 10 million in just a single quarter (Q1 2020 to Q2 2020)? Netflix innovation strategy is the perfect example of how companies can scale and stay at the top during tough times.
This article will highlight the Netflix business lessons that companies can learn and thrive in the post-pandemic and recovery times. The Netflix innovation strategy lies at the core of its success. We will also discuss digital transformation and Netflix and how businesses can step on the accelerator to success.
What does Netflix Offer?
Before we get into the Netflix management lessons and business learning, let us understand what Netflix offers that makes it so unique.
Netflix digital strategy comprises mainly on-demand streaming services. But that’s the service offering. If we talk about how Netflix competitive advantage came into action, then there are a few other things that the company offers -
Netflix eliminates the need to visit movie theatres by bringing a ton of movies and TV shows to you. You get the best content for a minimal price compared to theatres.
Netflix prices vary from country to country. But the monthly subscription model is cheaper than the average price of 2 movie tickets.
The biggest Netflix digital disruption comes in the form of providing on-demand content to users. They can watch the content collection anywhere and at any time.
The best technology at Netflix is its recommendation engine. It provides curated content to users based on their preferences and history.
Apart from providing content, Netflix also creates original movies and TV series that give it credibility as a production house.
Netflix business transformation isn’t, therefore, just because of the content. It is due to the overall experience that users have. From the user interface to playing their favorite movie and tv show on any device — Netflix gave to its users exactly what they wanted.
This brings us to the next part — Netflix management lessons and business learnings that companies can use as a guide to achieving success.
3 Netflix Business Lessons for Companies to Survive the Pandemic
Netflix has shown its prowess as the leader in the on-demand streaming industry. Its business model is one that has proven effective over the years.
But What Made it So? These 3 Netflix Business Lessons are the Catalyst for the Growth of the Company -
Customer Experience is #1
- Netflix competitive advantage is the result of a smooth user experience. Users can watch content on any device. They have the feature to add profiles in their account for different people. The subscription model enables 4 people to use 1 account at the same time. It offers HD quality streaming, with the feature to adjust the quality based on the device.
- Personalized experience is the key player in Netflix digital disruption. The recommendation engine works with big data. And last but not least, Netflix regularly updates its player to meet the customer’s needs.
- Businesses must focus on utilizing big data and Machine Learning to create a personalized user experience. After the pandemic, the market will get highly competitive. Customers value the company that can provide a smooth user interface, has shorter load times, and provides features that aren’t available in other applications.
Focus on Innovation
- The Netflix innovation process began with itself. In the initial days, the company set out to mail DVDs and abolish late fees. But as it realized the need for an innovative product that could bring the movies to the users in a non-physical form at home, Netflix, the streaming service, was born.
- Netflix innovation strategy is so successful that it spends around $12 billion a year in programming. Netflix also brought the concept of binge-watching, a savior for people during the pandemic.
- Companies today need to innovate — even in the smallest form. Established businesses can find a unique feature in their product that could amaze their customers. They can bring new products for an entirely new demographic using the lessons from Netflix innovation culture.
Build on the Culture
- Culture is an important factor for any technology disruption. The work culture at Netflix is known all across the world. The company hires talented people and has practically reinvented the definition of HR. They value leadership and drive people to take more authority and ownership than any other company.
- The Netflix culture deck, also known as the Netflix Manifesto, is highly talked about in the technical world. The company focuses on wasting time building HR policies and instead created a manifesto that was a guide for each employee in the organization. It has straightforward rules that played a significant role in the company’s success.
- A change in the company culture is important to thrive. Now, businesses need to develop an innovative and collaborative mindset. There must be the utmost freedom, and the focus should be on building trust with team members.
Visit here: How Digital Transformation Can Be Driven By CRM?
The three Netflix business lessons summarize to — a) customer experience is key, b) innovation leads to disruption, and c) culture is the driver of growth. The Netflix digital strategy is focused on values that empower each team member.
When it comes to the technology at Netflix, it uses Python, Java, React, Node.js, among other technologies. They enable the platform to work seamlessly and create dynamic features.
If you are looking for an IT company that can build applications on these technologies, BoTree Technologies is your partner.
Contact our experts today for a FREE CONSULTATION.
Originally published at https://www.botreetechnologies.com on July 20, 2021.