NETFLIX


What’s Good:
•  Top 10 online advertiser by media
spend
•  Natural Search: 600,000 pages indexed
by Google (Blockbuster has 45,000)
•  Paid Search: #1 on Google and Yahoo!
for “dvd rental”, #2 for “movie rentals”,
more than 1M U.S. searches per month
•  Social: Users share ratings, queue
•  Mobile: API available for commercial
use in iPhone or Android apps
•  Word-of-Mouth: 40% of signups from
WOM
•  Affiliate Marketing: Higher than average
per-signup fee
•  Display: Consistent messaging,
omnipresence
•  Email: One-to-one marketing
•  Promotions: Support branding and
business goals
•  Integrated across online and offline
media
SEARCH


What’s Good:
-  Invests heavily in
keywords, search rank
-  Focused on natural
search, SEO as well as
paid search
EMAIL MARKETING

What’s Good:
-  Personalized offers
-  Easily digestible content
-  Consistently, friendly tone
SOCIAL MEDIA

What’s Good:
-  8 channels
-  Leveraging fans’
passions
-  Legitimizing
unofficial fan
communities
-  Constant,
meaningful
communication
PROMOTIONS

What’s Good:
- High-stakes promotions--$1M Netflix
Prize for developers, $350K +
distribution for indie filmmakers
- Consistent with brand, business goals
STRATEGIC PARTNERSHIPS

What’s Good:
-  Partner with OEMs
-  Leverage existing
communities
-  Hitch your wagon to a star
MOBILE APPS

What’s Good:
-  Extending brand via
Open API
-  Share the wealth.
They’ll spread the
word.
-  Apps, the ultimate
user-generated
content
AFFILIATE MARKETING

What’s Good:
-  Enlist indie
marketers
-  Make it worth their
while ($16/signup)
-  Give them what they
need to support you
OFFLINE MARKETING

What’s Good:
-  Fully integrated, consistent
-  No opportunity wasted
-  No medium neglected
 LIVING THE LINE
Netflix delivers on its brand promise
Netflix Values
External:
-  Best value proposition in its industry
-  9 Subscription plans, starting at $5
-  Easy signup
-  Fast, easy delivery
-  Free shipping both ways
-  Extensive catalog
-  Build-Your-Own Entertainment
-  Automated queue management
-  Discovery engine
-  Leverages user ratings, reviews, transaction
data to increase sales
-  Queue is sticky, built-in loyalty
 LIVING THE LINE
Netflix delivers on its brand promise
Netflix Values
Internal:
-  Freedom & responsibility approach
-  Top of market pay
-  Every one employee does the work of three
-  Unlimited vacation, generous perks, negotiable
compensation structure (cash vs. stock)
-  Each business unit has its own internal
boutique headhunter firm
-  Extreme flexibility
-  Pay not tied to performance reviews
-  Average performers get above-average
severance packages