How Netflix Makes Money With Its Customer Experience

    On: May 04 Author: Scott German Categories: business strategy No Comments
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    The arrival of Netflix dawned the beginning of monumental behavioral change for many of us. Since its arrival, we no longer have to deal with late fees, unless we want to. We no longer have to leave our homes, unless we want to. It has even become socially acceptable to say, “I stayed home all weekend and binge-watched Netflix.” And even though Blockbuster got what it deserved, (which was payback for all the late fees they slapped me with), the movie rental industry wasn’t destroyed. It was reborn through streaming.

    Just think, there is an entire generation of TV streamers out there that have never stepped foot inside a Blockbuster. And even though Netflix isn’t the only global streaming player in the business, they gave us a game-changer that has allowed us to binge-watch at a pretty low price. So what’s making Netflix so successful? Do you know how Netflix makes money? They've been thinking big every single step of the way.

    How Netflix Made Thinking Big A Possibility

    In 1999, Netflix launched its monthly subscription service to movie-lovers who were fed up with late fees. Thanks for all the memories Blockbuster! Movie rental prices were high, and it was a bit of challenge to rent newly released flicks. Renting movies used to be a hassle. Netflix built its service with this in mind and tapped into our longing for convenience. They have gone on a journey with us to meet our customer satisfaction.

    Netflix ceo reed hastings quotes

    When it became a hassle to mail our rentals back, Netflix eased our pain in 2007 and began offering its streaming service. The next couple of years, Netflix made itself incredibly easy to access. It partnered with companies like Microsoft, Sony, and Apple to provide us with its streaming service on video game consoles, Blu-ray disc players, and smart devices. Netflix succeeded in completely infiltrated our worlds through the technology we love. However, it wasn't going to be enough to stop Netflix from thinking even bigger.

    How Netflix Makes Money By Thinking With The Customer Experience In Mind

    Once Netflix had rolled itself out on every device, they challenged themselves to build customer loyalty by offering a better customer experience through original programming. On February 6th, 2012, Netflix launched their 1st original show called "Lilyhammer" in Norway. All 8-episodes were available for instant streaming. Netflix was now entering new waters. In 2013, Netflix launched its thrilling “House of Cards” show, which cost them $100 million to produce two 13-episode seasons.

    Netflix is now an Emmy contender thanks to their only on Netflix TV shows. And, even though, many were initially puzzled when Netflix boldly released all 13-episodes of season one of “House of Cards” at once, they knew what they were doing. They were creating the building blocks of their financial livelihood the best way they know how, with their customers convenience in mind.

    Thinking Big Is Paying Off For Netflix

    In 2014, Netflix rolled in $5.5 billion in revenue. Recently, the company released its 2015, 1st quarter financials. They now have 62 million global streaming subscribers. The company continues to think big and has been expanding its streaming service in other global markets. Netflix has never forgotten where their success came from. They’ve even given CEOs, executives, and entrepreneurs across the global something worth thinking about. If you’re going to think big, don't forget the most important asset of your business, your customers. Always keep them in mind, especially where their convenience is at.

    Image by CityMorgue via WikiMedia cc

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