Netflix Entertainment Industry Analysis Essay Example
The primary research targets are the existing customers of Netflix. The purpose of the enquiry is to ascertain current trends that entice customers. In fact, the entertainment industry is a very flexible venture. The changes in technology and preferences necessitate service providers to introduce novel amenities that will attract new clients. In addition, the entertainment industry is one of the most competitive industries in the world. Therefore, it is essential for service providers to conduct periodic research. This trend will help identify the new tendencies that Netflix can adapt to attract a new target market and increase the existing market (Douglas 58).
Main Hypothesis about Entertainment Industry
- Hypothesis 1: Gaming platforms will increase the number of clients subscribing to services by Netflix
- Hypothesis 2: Epic/fantasy and reality genres are more preferred by clients
- Hypothesis 3: Clients would consider watching shows from other parts of the world, such as Africa and India
- Hypothesis 4: Clients watch TV shows more frequently than movies
Recent trends in technology have made it probable for customers to watch their favorite movies via gaming platforms. This trend is complemented by the growth of the videogame sector. Now, research proves that the number of people playing games surpasses the people watching television shows and movies (Goldfayn 23).
Hence, this primary research aims at establishing the perceptions and views of customers regarding the efficacy of the gaming platforms. The significance of the gaming platforms to Netflix will arise with the expansion and attainment of new target market (Grinapol 96). The current users subscribed to movie shows will have the advantage of subscribing to videogames and movies simultaneously. This move will increase the subscription for clients who need both services.
This primary research will establish the views of Netflix customers concerning the genre. Nowadays, the majority of customers have a strong allegiance to a specific genre of TV shows and movies. This is exemplified by the great success of “Game of Thrones”, an epic TV show airing on HBO. The TV show is currently at its sixth season and has a very loyal and huge audience. Therefore, Netflix could introduce a new show of this genre to obtain a new target market that would be highly attracted by the show (Lüsted 45). Thus, this research will establish the perception of Netflix customers regarding epic genres. In addition, reality television has attracted a new audience that entails the whole family. The reason for this is the fact that the reality shows depict the real issues facing the society today. This genre is also important and should be considered by Netflix when developing shows for television.
In a bid to establish a new target market, the primary research will inquire from customers if they would consider watching TV shows from other parts of the world such as Africa and India. In particular, Bollywood has produced movies that have sold many copies throughout the world. For instance, “Slum Dog Millionaire” and “Three Idiots” were very successful in all parts of the world including the United States. The TV show outsourced from Bollywood was very successful. This primary research will hence try to establish if the existing customers of Netflix would consider watching movies and TV shows from other parts of the world. For example, many customers have indicated that they love Trevor Noah, a comedian from South Africa (Keating 30).
This finding indicates that a new target market can be obtained through acquiring movies and TV shows from other parts of the world. Since these movies will have a different concept from what the customers are accustomed to, the customers may appreciate and buy more movies from these regions.
This marketing plan is a management approach to achieving the goals of a marketing campaign over well-coordinated use of several promotional means aiming to reinforce each other. The techniques encompass advertising, sales, promotions, direct marketing, and public relationships (Douglas 63). The marketing will offer competitive advantage, increase sales, and proceed while saving money and time. Netflix should employ these marketing techniques to target a different audience. For instance, social media target the young generation while conventional methods such as TV commercials target the older generation. Therefore, internet marketing would be more efficient in ensuring that Netflix reaches its target audience. Netflix should operate at low costs, eliminate intermediaries, and introduce new shows to have a competitive edge over its competitors (Douglas 10).
The market for Netflix has a great potential for growth. Clients who have subscribed for movies characterize the existing market and TV shows online via the internet and via mail for clients in the United States (Grinapol 96). The number of clients opting for DVD rental services is few as compared to the clients who have subscribed via the internet.
Netflix has a tendency of releasing a full show online for subscribed customers. This method allows the clients to access all the episodes of a TV show at an instant. In addition, this approach is efficient for clients who love having all episodes before they commence watching a TV show. However, releasing one episode at a time creates an urgency and desire for the particular show. Therefore, Netflix should adapt a strategy that will allow the famous shows to become available to the public one at a time when the shows are released.
The survey conducted included twenty respondents. This sufficient number was significant in increasing the validity of the research (Goldfayn 23). The major findings from the research included a reality and epic genre preference among the customers. The majority of the customers indicated that they opted for TV shows that had an epic genre. This accounts for the fact that these shows appealed to the imagination of the clients and create a fantasy world that they get in. Gaming platforms were increasingly preferred due to their flexibility and ability to conduct simultaneous tasks. Most of the clients indicated that they watched television shows more than they watched films.
Netflix has a high productivity and revenue. The enterprise has a reputable market with no barriers. The executive has developed an impeccable customer relationship. Customers get the value for their cash and embrace the amenities they receive (Keating 30).
There is a very competitive market for movies and TV shows. Customers are lured to the cheap products, which may shift their allegiance to other companies. Amazon and Hulu offer the biggest competition for Netflix. The competition is more evident for Amazon since Netflix is hosted via the Amazon Cloud (Douglas 93).
According to Nielsen, the breakdown of streaming services in America currently stands at 36% Netflix, 13% Amazon, and 6.5% Hulu. Therefore, the company has a favorable platform to expand the services. In such a way, under the right management, the enterprise will grow to become a transnational giant and dominate entertainment in other countries.
The rising costs in original programming will increase the cost of operation (Goldfayn 23). For instance, Netflix paid two million dollars per episode for each episode of the black list aired. The higher bidding from competitors is likely to increase this cost further.
The new products introduced by the company will be priced efficiently to attract the target audience. The new products should be introduced on a promotional basis. For instance, “buy five, get one free” could be employed on Wednesdays. The products will be streamed via the company website for international clients and via mail for American clients (Keating 30).
The enterprise will eliminate intermediaries from its chain of acquiring and distributing products and services. Then, the products will be conveyed directly to consumers via the online streaming platforms. The prices for the products will be negligible since distributing products directly lowers their cost. Most intermediaries raise their products in a bid to increase their profit margin.
Promotion of the new products and services of the company will be conducted through the successful movies and series that have attracted a huge audience. For instance, the blacklist can be used to advertise a new TV-show such as Sense8. The latter TV-show has attracted a great number of people. Advertising it on an already successful TV-show will intensify the audience to higher levels.
Netflix will employ an integrated marketing approach. Integrated marketing communication is a management strategy to realizing the objectives of a marketing campaign through a well-harmonized use of several promotional techniques intending to complement each other. The methods include advertising, sales, promotions, direct marketing, and public relationships. The concept has many benefits. It generates competitive advantage, increases sales, and proceeds while saving cash, time, and hassle. Netflix will employ this method to target diverse audience. Social media avenues target the young generation while conventional approaches such as TV commercials target the older generation.
Netflix has the resources to expand beyond American borders to other parts of the world. The excellent products and services will be sold in any given market in the world. The enterprise should make acquisitions of entertainment industries in other parts of the world where the entertainment market has not been exhausted. This approach would be the fastest way for Netflix to intensify its presence in the global market and have a competitive edge. The enterprise should intensify digital marketing further. This plan will translate to arise in the sales since it reaches the target audience more effectively (Douglas 91). The research and development department of Netflix will engage customers in numerous interviews. This will help the company capture the needs and recent trends in the entertainment industry.
The company will intensify and improve its products and services and eventually host its services via its own cloud. Currently, the company is using Amazon cloud to stream its services. Therefore, it does not have complete control of the cloud. Developing its own cloud will result to a situation where the company can increase the number of TV-shows and movies that suits it. The initial cost of acquiring a private cloud will be high, but the long-term use of the cloud will result in lower costs.
Netflix will intensify client support through online videos. The videos will show clients how to fix and troubleshoot their internet settings when streaming videos. The enterprise will acquire a large bandwidth to provide services that are similar to teleconferencing. The customer care agents will interact with clients via video facilities that will make it easier for them to identify the areas that the clients are experiencing difficulties and hence help them to resolve the issues.
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Hypothesis 1, 2 and 3 have been strongly supported by the data from the primary research. Hence, they are accepted by the researcher. However, the data available on hypothesis 4 does not strongly support the hypothesis. Therefore, the hypothesis is not accepted. In such a way, further research is necessary to provide more insight on the subject.