Netflix Strategic Analysis

Netflix Strategic Analysis Part 2
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Netflix Strategic Analysis Part 2
Recommended Strategies
One strategy that Netflix needs to consider and implement is building memories for its customer base. Over the years, Disney has maintained its position and fan base mainly because it focused on giving its fans memories or experiences that are not time-bound. Memories elevate the customers into fans, meaning they get to be a part of the organization. Netflix can consider the same approach and focus on building long-lasting memories for its customers. The implication of the above would be an increase in investment, especially in creativity and the products being released. The goal here should be to release films and shows that are not time-bound.
A major disadvantage for Netflix in the past few years has been rigidity, and this has negatively impacted the adoption of newer and better ideas like lowly-priced Netflix options with ad-support. However, there have been rumors of Netflix looking to change its approach and consider an ad-supported plan. Shaw (2022) indicates that Netflix is considering a monthly plan that is half its current $15.49 monthly plan. In the new plan, Netflix intends to offer customers content that has 4-minute ads every hour. Further, with the streaming platform losing more than a million subscribers in the first two quarters of 2022, it is crucial that this plan be considered (McCluskey, 2022).
Thirdly, unlike other platforms that release their shows on a weekly basis, Netflix has been in the habit of releasing all the episodes of its popular shows. The advantage of this approach is that it keeps people glued to their screens for the entirety of the episodes. However, the disadvantage of this approach is that some customers subscribe to these shows and then cancel immediately after. Therefore, Netflix needs to consider releasing their shows on a weekly basis to help ensure that they keep this crop of customers. While there could be a few who may consider canceling their subscriptions after finishing a show, a percentage might start following other shows or watching other films within the platform.
The fourth strategy entails releasing blockbuster movies in theaters first before making them available for subscribers. However, it is crucial to mention that Netflix should limit this option to select movies that fit within the category of blockbusters. Blockbusters take the world by storm and happen to attract millions of viewers around the world. These are movies that have managed to generate a following by themselves, and Netflix has been releasing several movies every year that fit this category. Also, as Shaw (2022) indicates, theaters are in need of more movies to help return ticket sales to pre-pandemic numbers. Therefore, Netflix can take advantage of this and negotiate a favorable contract.
The fifth suggestion entails the idea of bringing back free trials. Free trials have their advantages and disadvantages. First, there is a real chance that some of the people who use the trial version will not subscribe. Secondly, it opens the door to people who are unwilling to subscribe but will open as many trial accounts as possible. However, trial versions are also ...