Netflix has taken over video streaming as we know it. Not only is Netflix streaming movies and television shows, but they are now producing media. Originally Netflix started as a DVD rental service, but has now moved to online streaming. By producing a show from soup to nuts, Netflix controls global rights, which are key as the company attempts to offer a similar library of shows and movies around the world (Shaw, 2016). One thing that can be attributed to Netflix’s success is the fact that they know what their audience wants, which is key for any successful company (Sima, 2016) and the best way to reach out to them is through social media. Movies and Television series are appealing to all genders, ages and nationalities, so Netflix does not have a narrow target audience, which is why using social media platforms is a beneficial marketing and advertising tactic. Netflix utilizes their social media outlets, like Twitter and Facebook to target their audience (Sima, 2016). These efforts have allowed Netflix to take over the video streaming industry.
Netflix’s success in their industry can be attributed to their presence on social media. Twitter is one of the social media sites that Netflix excels in when connecting with their customers. Netflix’s social media team on Twitter replies to customer’s questions and concerns with witty responses (Sima, 2016) that are intended to grab customer’s attention. This customer service technique ensures that customers know that Netflix values their business and wants their customer experience with Netflix to be as positive as possible. Many companies are adopting this type of customer service behavior like Arby’s and Wendy’s. And it is not just Netflix’s social media team who is communicating with customers, Reed Hastings, Netflix CEO, also utilizes his personal social media to promote the company’s efforts. In July 2012, Hastings posted, on Facebook, about a milestone the company had reached in June —monthly viewing had surpassed 1 billion hours for the first time (Sima, 2016). This seems like a simple gesture, but this post caused Netflix’s stock to rise from $70.45 to $81.72 the following day. This Facebook post received a lot of criticism however, because Hastings had released stock information that influenced the stock price without providing information that would back up his claims (Sima, 2016). Transparency, even if accidental, on social media between a company’s CEO and its customers helped the company to flourish.
With more than 79% of millennials using Netflix, it is very strategic technique to utilize social media for marketing purposes. Social media is controlling the lives of millennials. According to an article published by Fortune, Netflix is taking over the way we watch Television series. Television networks are now following Netflix’s business models by releasing an entire series at the same time, instead of a new episode every week (Reuters, 2017). This tactic has changed the media world. By utilizing social media sites, such as Twitter and Facebook, to promote new releases and to inform customers when a new series is coming out, Netflix can spark chatter among social media users. These announcements are not only posted on Netflix’s social media accounts before releases but also post-release, to get people talking about the show again (Kerns, 2016). Netflix has strategically taken over the TV and movie streaming industry by utilizing social media. Netflix’s social media efforts have allowed them to dominate the industry.
Author: Alison Bolt (University of Vermont)- Senior majoring in Public Communication and minoring in Business Administration
Advisor: Rob Williams, Ph.D. (University of Vermont); Professor of Media and Communications.
Sources:
Kerns, C. (2016, April 11). Streaming social: What marketers can learn from Netflix’s social strategy. Retrieved from Marketing Land.
Nocera, J. (2016, June 15). Can Neflix Survive In The New World It Created? Retrieved from NY Times.
Reuters. (2017, January 20). Netflix’s Binge-Watching Model Is Set to Take Over TV. Retrieved from Fortune.
Shaw, L. (2016, October 19). Netflix Is Taking Over Hollywood, and Hollywood Isn’t Thrilled. Retrieved from Bloomberg.
Sima, I. (2016, August 31). A Netflix Story: The Human Approach to Social Media Marketing [Infographic]. Retrieved from Social Media Today.
