After the establishment of Netflix, completely changed the streaming media industry, in the fierce competition is still unique, in the top position in the industry. On this week’s Blog, I’ll explore how Netflix has maintained its unique appeal in the fierce competition in the streaming market. Using the relevant literature and the movies and TV shows related to Netflix as prime examples, the strategy of Netflix to maintain its leading position is discussed.

Content innovation and diversity:

Netflix has spent a huge amount of money to create original series and a variety of TV programs, movies, etc., maintaining originality is an attraction, and Netflix deeply knows that innovation is the glue that maintains the freshness of the public. According to a study by Thompson et al. (2019), this approach not only attracts new subscribers, but also retains existing subscribers. Just like the appearance of “Stranger Things” and “The Crown” and other programs, once won the pursuit of most netizens, even overseas users, and the quarterly update method continues to expand the audience’s expectations to enhance the overall popularity of the program and platform.

Technological progress:

On the technical side, the recommendation algorithm and user interface play the most critical role. Gomez-Uribe and Hunt (2016) specifically discuss how Netflix uses data analytics to understand audience preferences to improve content recommendations and user experience.

This personalization can provide tailored content to the audience, thus increasing the stickiness of the user.

Global expansion:

Netflix’s expansion into international markets is an important strategic deployment, Lobato (2019) pointed out that by localizing content and investing in regional shows, such as India’s Sacred Game and Germany’s Darkness, Netflix has successfully leveraged its diversification strategy to attract global audiences.

Marketing and social media engagement:

Jenner (2018) highlights how Netflix uses social media to generate buzz around its shows. The engagement marketing campaign for shows like Narcos shows how Netflix is using social media to expand its reach and connect with more viewers.

Conclusion:

There are many reasons why Netflix is so competitive. Staying alive in the streaming market requires a diverse portfolio of content, technological innovation, global expansion, and social media marketing. With the development of streaming media, Netflix’s strategy has broadened the path and provided valuable lessons for the success of digital entertainment.

References:

Thompson, A., et al. (2019). “The Impact of Original Content on Streaming Services’ Subscriber Growth.” Journal of Media Economics, 32(3), 123-139.

Gomez-Uribe, C. A., & Hunt, N. (2016). “The Netflix Recommender System: Algorithms, Business Value, and Innovation.” ACM Transactions on Management Information Systems, 6(4), 1-19.

Lobato, R. (2019). “Netflix Nations: The Geography of Digital Distribution.” New York University Press, 85-102.

Jenner, M. (2018). “Netflix and the Re-Invention of Television.” Palgrave Macmillan, 147-165.

By YiWang 33789183