Overall Netflix’s current strategy has proved very effective to their business success. We suggest they continue implementing the existing strategy with the addition of several recommendations developed below. To help Netflix maintain their title as industry leader and to solidify their position amongst the competition, the firm should consider some of the following proposals:
1. Original Content: Netflix should continue with their strategy of airing original content as this is a major reason why consumers choose Netflix over its competitors. 2. Increase Subscription Price: Netflix should slightly raise monthly subscription prices, although they should do it gradually as more content is made available, as to not anger their customers. 3. New Subscription Payment Options: Netflix should introduce new subscription options such as an annual subscription option that offers a discounted rate when compared to the monthly rate. 4. New Account Types: Introduce a premium account that gives premium members access to new content a few weeks before standard account holders. Netflix should also consider giving premium members extra behind the scenes features for original content. |
5. Expand Revenue Sources: Netflix can consider product placement in content they produce, and implement relevant silent banner ads on its browser and search pages. It is important that the ads do not affect customers viewing experience. We suggest that ad content remain relevant to the entertainment industry.
6. New Partnerships/ Licensing Agreements: Netflix should consider entering into partnerships with local and national television networks to gain exclusive access to new shows and the ability to air them relatively quickly after they have first aired on television. For example Global currently plays episodes on their website the day after the show airs. |