A Case Study on Netflix Marketing Strategy

Netflix always presents an innovation that is considered to be a trendsetter that can bankrupt Blockbuster because it cannot keep up with Netflix’s creation, which at that time already had 167 million subscribers worldwide and produced its own films and TV shows which were even able to win several prestigious awards.

Netflix has succeeded in using a modern marketing strategy in an integrated approach to brand development and customer relationship management that facilitates sustainable growth in the digital era through innovation, technology, creative process, and data analysis.

Unlike traditional marketing strategy, which focus on selling through one or two channels, regardless of the outcome, modern marketing strategies evolve as the market changes.


As at the beginning of its appearance, Netflix’s branding strategy is to focus on promotion on social media and always try to be up to date. They always insert humor in every promotion by displaying memes, so they don’t seem hard selling.

Until now, Netflix has always been famous for its satisfying service to consumers. It can be seen that in almost all of Netflix’s social media, they will respond to their customers in a relaxed style and always “in funny ways.”

They will not infrequently hold Polls or QnA Sessions about their series to maintain communication with their consumers. Netflix realizes how vital consumer feedback is to maintain its brand’s quality.

This was followed by a large number of Netflix service users in Indonesia, which reached up to 800 thousand users in 2020.

Considering the quality of films and the satisfaction of the uninterrupted viewing service provided, it is not surprising that Netflix can have a place for its users.

Netflix’s Marketing and Business Strategy

Here are Netflix’s business and marketing strategies:

1. Internationalization and localization strategy

Netflix is available in more than 190 countries. It can reach a global target audience on the Internet through servers strategically located in various regions of the world.

It should be noted that Netflix uses the Amazon Web Services cloud computing platform for more cost-effective, large-scale public computing power.

With cloud computing, companies can scale, provide services globally, and reduce the risks associated with network outages and traffic bandwidth. The company’s headquarters are located in California.

However, to maintain a global presence and better manage global operations, the company maintains offices and subsidiaries in countries such as the Netherlands, Germany, Luxembourg, Brazil, India, Japan, South Korea, and Singapore.

Working on a global scale means dealing with diverse target audiences with different preferences. To overcome this problem, Netflix also uses a localization strategy as part of its business strategy.

The company has received licenses to distribute content not only from Hollywood producers but also from regional producers.

2. Diversification strategy through content production

Netflix is basically a video-on-demand streaming service provider.

This video content includes television series, films, animations, and documentaries produced in the United States and other countries such as the United Kingdom, France, Germany, India, Japan, and Korea. However, the company diversified its business to include many subsidiaries.

Built A Production Company

The company owns and operates three content production companies: US-based Netflix Studios, Germany-based Netflix Services Germany GmbH, and Netflix Pte. Ltd.

This subsidiary is a production studio that produces original television shows and films. Several films and TV series exclusive to the company have received critical acclaim and positive response from audiences.

Exclusive and original content enables companies to attract and retain customers.

3. Strategy and marketing activities

An essential component of Netflix’s business strategy is the marketing strategy and specific marketing activities. The company’s marketing strategy is relatively simple.

Since it is an online business that follows the general principles of e-commerce, Netflix extensively uses various forms of digital marketing.

For example, a company maintains a social media presence using Facebook, Twitter, and YouTube to keep in touch with social media users.

In addition, it also uses online advertising, such as social media ads, websites and blogs, search engines, and mobile applications, to promote streaming services and content.

One-Month Trial As Unique Promotional Tactic

Advertising strategy is also an essential part of Netflix’s overall marketing strategy. The company offers a one-month trial as a unique promotional tactic to encourage new customers to sign up.

It also partners with telecom service providers and conventional ISPs to provide free or discounted subscriptions to new or existing customers while leveraging the provider’s existing customer base and converting them into customers.

Flexible Pricing Strategy

Netflix’s pricing strategy is very flexible. It offers three pricing options. The base price includes a one-user subscription to standard-definition streaming services.

At the same time, the mid-range or standard options cover up to two users and dual high-definition streaming. The highest quality and most expensive option or premium plan include four users who can simultaneously watch ultra-high definition streaming.

These pricing options allow Netflix to target customers with different financial capabilities and streaming needs.

4. Technology strategy and capacity building

The fact that Netflix is an online business using general principles or an e-commerce structure means that Netflix is dependent on technologies related to the Internet and digital communications.

The company decided to use cloud computing or virtualization to reach a global target audience and support regional markets. Cloud computing provides Netflix with several benefits, including cost and operational efficiencies.

There is no need to build and maintain physical network and server infrastructure, global scalability, and solutions for network and power outages.

Netflix’s Software Development

Netflix is also involved in software development. The company has developed and released web and native applications for various computing platforms, such as versions for Microsoft Windows and Apple macOS and Android and iOS mobile operating systems.

The company regularly updates its applications to introduce new features and improve user experience, allowing users to access the service regardless of their platform.

Also, part of Netflix’s business strategy is anti-piracy initiatives. The company works closely with manufacturers and other technology companies to fight piracy and protect content rights.

Prevent Digital Illegal Copying and Distribution

They have special programs to scan and report content illegally distributed online. The application has a built-in digital rights management system to prevent illegal copying and distribution.

The company also uses machine learning to improve streaming quality, especially with advanced algorithms and statistical analysis to test network bandwidth.

The company has a dedicated department called Netflix Research that aims to harness the power of machine learning for various business purposes.

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