2. Netflix is a global Internet television network offering movies and TV series commercial-free, with unlimited viewing on any
Internet- connected screen for an affordable, no- commitment monthly fee with over 81 million members in over 190
countries.I believe Netflix is doing an amazing job in social media. Every time I scroll down on Twitter or Facebook, I see
clever posts from Netflix. The company is very involved with customers through social media including having customer
service accounts.
SWOT analysis about Netflix and its social media presence.
Strengths: Popularity and Convenience.
Netflix has grown in popularity in the recent years. According to
http://www.postcontrolmarketing.com/453/2015/06/03/netflix-gets-social/ , Netflix’s current social media platforms include a
blog, a tech blog, a Twitter, and a Facebook account. Netflix has around 14 million likes on Facebook, and 1.36 million
followers on Twitter. Netflix posts from Facebook and Twitter about 4-5 times a day. People can actually tweet and most
of time, Netflix responds.
Weakness: Not enough people involved
Even though Netflix is very popular in social media, its tweets/Facebook posts do not get as much popularity. The posts
that usually get more likes/ retweets are usually contents that Netflix re posts from another sources.
Opportunities: Involvement with customers
Netflix easily involves with its followers on social media. This allows the company to run promotions, contests, etc., which
helps the company boost its popularity.
Threats: Competition
The competition for online streaming services is on the rise. With this also comes the competition for social media
audience. Sites like Hulu are expanding their social media strategies which could overcome the popularity of Netflix.
Situational Analysis
3. Netflix basically use almost all social media platforms. As an example, in Twitter it has 1.98 Mn followers,
its also in Facebook is pretty active, it has in total 23,154,948 page likes and in Instagram it has 1.6
million followers. As reached likes for each platforms it gets on average 20k- 30k likes and comments are
depends on the concept of posts around 200- 300. On the other hand, if we look at Twitter for each post it
gets like 100-200 retweets.
Netflix usually posts trailer of new episodes, ads and comments about TV series and with the frequency of
twice a day with different concepts. When it comes to search first Netflix’s official website is appearing
and then below wikipedia of Netflix and all social media accounts are taking place.
Netflix’s management team consist of 9 people which they are respectively founder and CEO, chief talent
officer, chief communication officer, chief marketing officer, chief product officer, general council,
international development officer, chief content officer and chief financial officer. However, if we look at
total employees of Netflix, they are full time plus part time 3.1K people working for Netflix. The size of
their budget for 2016, Reed Hastings has earmarked $6 billion in cash for Netflix (NASDAQ:NFLX)
content, $5 billion on a P&L basis. About half of that will go toward content for its 43 million U.S.
subscribers.
Finally, social media activity of Netflix on the base of its SEO is obviously a pro in web traffic and google
search because, the No. 1 subscription-video service accounted for 36.5% of all downstream Internet
bandwidth during peak periods in North America for March, according to a new report. While Netflix has
the percentage 36.5, by comparison, for the same time periods, YouTube accounted for 15.6% of
downstream Internet traffic, web browsing was 6%, Facebook was 2.7%, Amazon Instant Video was 2.0%
Situational Analysis
4. Competitive Analysis of Netflix
Netflix is facing increasing
competition, not only from pay-TV
providers who have started offering
their own OTT (over-the-top) services,
but also from pure-play OTT service
providers.
Amazon and Hulu are competing with
Netflix in the video streaming market.
However, as you can see in the left
graph, a majority of users, or about
46.4%, subscribe to Netflix, 18.9%
subscribe to Amazon (AMZN) Prime,
and 11.4% subscribe to Hulu or Hulu
Plus.
A large number of users, around
45.6%, don’t subscribe to any OTT
service, which could result in Netflix
capturing this user base in the long
term.
5. GOAL
Increasing 10% up leadership position in domestic and global market for Internet TV and become a streaming only
service . In addition, we have grown to over 75 million members around the world and expect to end this year with
over 90 million members. In 2016, we expect to spend $5B on a P&L basis and over $6B on a cash basis on
content for our members.
TARGET AUDIENCES
The company’s primary target market includes American men and women aging 25-34 years old who have
access to internet, have household incomes starting at starting at $50,000, have at least a bachelor’s degree, and
have children. This market can be divided among married, single-parent, and single individuals because all
sectors generate domestic streaming subscriptions.
Netflix’s secondary target market includes men and women aging 35-54 years of age who have access to
internet, have household incomes starting at $75,000, have at least a bachelor’s degree. This market includes
individuals who work 40+ hours/week and are more established than the primary target. These individuals seek
Netflix as a source for entertainment and downtime either alone or with family.If these individuals have children,
then they targeted seek Netflix as a source of entertainment for the children, as well. The target likes that Netflix
has enabled families to share one account while storing each family member's preferences under a separate
profile.
Finally, Netflix’s tertiary target market and most recently acquired market includes international streaming
subscribers. This market includes individuals aging 25-55 years old who have access to internet, are middle class,
graduated from college, and have children. This market includes parents of children interested in American
movies and television and the individual likely enjoys this product, too. This international consumer enjoys
entertainment especially that can be streamed online and the option to add subtitles or to watch the streaming
media in his/her native language.Netflix's international subscriptions have tremendous potential for growth
especially among European countries with the largest economies.
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10. Finally, as a part of strategy I choose one of the most popular crime series of Netflix `Making a
murderer’ to post various social media platforms for increasing the perception and popularity of
Netflix’s web traffic ( measuring it with Google Analytics).
