A point on the success of the brand with the red logo photo credit: Instagram: netflixes
Leading streaming platform, with more than 200 million subscribers worldwide, Netflix has been reorienting its strategy since 2019 to appeal to an ever larger audience. Its recipe: local productions with local actors. And to achieve its objectives, the platform does not hesitate to invest billions.
Subscribers by the hundreds of millions
It is the giant of paid video streaming. Netflix, and its more than 200 million subscribers worldwide is more than just a platform. It is a social phenomenon. 15% of global internet traffic is generated by Netflix. And the health crisis only boosted the enthusiasm of spectators for the platform. Netflix will gain nearly 37 million new subscribers in 2020, including 8.5 million in the 4th quarter. A success due to the platform’s strategy, since imitated by its competitors to bet on original productions.
It is also with House of Cards, a Netflix production, which she made known to the whole world. Series hits like Stranger Things or The Witcher, confirm the interest of such a strategy. So much so that the company has invested nearly 19 billion euros in exclusive productions for its platform. By way of comparison, the group had spent 4.9 billion in 2015 and 17.3 billion in 2020.
Netflix: a local strategy
The other strength of Netflix is the shift that began in 2019 in the production of its content. The share of American subscribers compared to that of subscribers from other countries of the world is reversed in favor of foreigners. The objective is then, in each country where the platform dominates, to produce content corresponding to the national identity of the country, while ensuring to attract an international audience. A complex equation to solve but it works.
As proof, the success of Lupin, French series with Omar Sy or even Squid Game , viewed 142 million hours. The biggest success of the platform to date. What’s more, Netflix is playing the card of diversification through its flagship series to make itself known. Since July 2021, the Casa de Papel: The Experience, is held at the Monnaie de Paris, until January 2, 2022. Co-produced by Netflix and Fever, the leading platform for the discovery of experiences, it is of an immersive game rich in action and twists. Participants find themselves immersed in a whole new plot, based on the series. Nothing is left to chance inside the famous building, from the sets to the actors and the objects.
Netflix: the weaknesses of a colossus
If the platform is today the leader, it should not necessarily rely on its achievements. Competition is fierce from Amazon Prime to Disney + via HBO Max, themselves content producers for decades (Amazon intends to buy MGM). Netflix, which still relies heavily on its large catalog, is also very vulnerable in renegotiations of its licenses, especially for products from studios of competing platforms. The HBO or Warner series and films are intended to be broadcast exclusively on HBO MAX, as are all Buena vista production content for Disney. This pressure is forcing Netflix to produce more original content at ever higher cost.
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