In-Depth Netflix Case Study: Mastering Product Strategy & Growth

1. PRESENTED BY: ALLUGUBELLI VIVAS REDDY -160122733167 PRODUCT MANAGEMENT ESSENTIALS SYED UZAIR AYAN AHMED -160122733202 KONDAPURAM PRASHANTH REDDY -160122733316 NAGENDRA SATYA PRASAD PULAPA -160122733195 CASE STUDY 01

2. PRODUCT MANAGEMENT • PRODUCT MANAGEMENT IS THE PRACTICE OF GUIDING A PRODUCT'S LIFECYCLE — FROM IDEATION TO LAUNCH AND BEYOND. • FOCUS: CREATING PRODUCTS THAT MEET CUSTOMER NEEDS, ALIGN WITH BUSINESS GOALS, AND OUTPERFORM COMPETITORS. • AT NETFLIX, PRODUCT MANAGEMENT ENSURES A SEAMLESS AND DELIGHTFUL ENTERTAINMENT EXPERIENCE GLOBALLY. • WHY PRODUCT MANAGEMENT MATTERS AT NETFLIX • NETFLIX RELIES HEAVILY ON PRODUCT INNOVATION TO STAY COMPETITIVE. • PRODUCT MANAGERS BRIDGE USER NEEDS, BUSINESS OBJECTIVES, AND TECHNICAL FEASIBILITY. • CORE RESPONSIBILITY: ENHANCE USER SATISFACTION WHILE DRIVING SUBSCRIBER GROWTH AND RETENTION. 02

3. NETFLIX PRODUCT VISION • DELIVER THE WORLD’S BEST ENTERTAINMENT EXPERIENCE • CREATE A PERSONALIZED, SEAMLESS VIEWING JOURNEY • MAINTAIN CUSTOMER-CENTRIC FOCUS • EXPAND GLOBAL REACH WITH DIVERSE, HIGH-QUALITY CONTENT • CONTINUOUSLY INNOVATE THROUGH TECHNOLOGY • EMPOWER CONTENT CREATORS AND STORYTELLERS • ENSURE ACCESSIBILITY AND INCLUSIVITY • FOCUS ON SEAMLESS MULTI-DEVICE INTEGRATION • LEAD WITH DATA-DRIVEN DECISION MAKING • PROMOTE A CULTURE OF INNOVATION AND EXPERIMENTATION 03

4. PRODUCT IDEATION AT NETFLIX • USER-CENTRIC APPROACH • IDEAS ARE GENERATED BASED ON A DEEP UNDERSTANDING OF USER NEEDS, BEHAVIORS, AND FEEDBACK. • DATA-DRIVEN INSIGHTS • ANALYTICS AND A/B TESTING RESULTS INSPIRE NEW FEATURES, CONTENT FORMATS, AND PLATFORM IMPROVEMENTS. • CROSS-FUNCTIONAL BRAINSTORMING • TEAMS FROM PRODUCT, ENGINEERING, DESIGN, CONTENT, AND DATA SCIENCE COLLABORATE TO IDEATE SOLUTIONS. • INNOVATION THROUGH EXPERIMENTATION • ENCOURAGES BOLD IDEAS, RAPID PROTOTYPING, AND TESTING NEW CONCEPTS WITH REAL USERS. • FOCUS ON PERSONALIZATION AND ENGAGEMENT • IDEATION IS HEAVILY GEARED TOWARDS ENHANCING CONTENT DISCOVERY AND USER STICKINESS. 04

5. PRODUCT DESIGN AT NETFLIX • Focus on user-friendly UI/UX • Testing UI components (e.g., thumbnails, play buttons) • Accessibility and personalization • Optimize content discovery (e.g., better search, curated carousels) • Improve streaming performance and load times • Consistent experience across devices and platforms • Dynamic recommendations based on user behavior • Simplify navigation and minimize user effort • Implement intuitive onboarding for new users • Adapt UI for different regions and languages 05

6. PRODUCT MANAGEMENT PROCESS AT NETFLIX • IDENTIFY OPPORTUNITIES • ANALYZE USER NEEDS, MARKET TRENDS, AND FEEDBACK TO FIND GROWTH AREAS. • DEFINE VISION AND PRIORITIZE FEATURES • SET CLEAR GOALS AND PRIORITIZE INITIATIVES BASED ON BUSINESS IMPACT AND USER VALUE. • COLLABORATE AND BUILD • WORK WITH CROSS-FUNCTIONAL TEAMS (ENGINEERING, DESIGN, CONTENT) TO DEVELOP SOLUTIONS. • TEST AND LAUNCH • VALIDATE IDEAS THROUGH A/B TESTING, GATHER INSIGHTS, AND ROLL OUT SUCCESSFUL FEATURES. • MEASURE, ITERATE, AND SCALE • TRACK PERFORMANCE METRICS, CONTINUOUSLY REFINE THE PRODUCT, AND EXPAND GLOBALLY. 06

7. ROLES AND RESPONSIBILITIES OF PRODUCT MANAGER • TRANSLATE BUSINESS GOALS INTO PRODUCT REQUIREMENTS • STAY AHEAD OF INDUSTRY TRENDS • ENSURE PRODUCT SCALABILITY AND RELIABILITY • GATHER AND INCORPORATE USER FEEDBACK • OPTIMIZE USER ACQUISITION AND RETENTION STRATEGIES • FOSTER A DATA-DRIVEN CULTURE WITHIN THE TEAM • OVERSEE PRODUCT LAUNCH AND POST-LAUNCH PERFORMANCE • DEfine and own product vision • Lead roadmap planning • Prioritize features & balance stakeholders • Analyze KPIs and metrics • CHAMPION THE CUSTOMER EXPERIENCE • DRIVE INNOVATION THROUGH EXPERIMENTATION • MANAGE CROSS-FUNCTIONAL COMMUNICATION 07

8. PRODUCT VS PROJECT VS PROGRAM • PROJECT AT NETFLIX • TEMPORARY EFFORT TO ACHIEVE A SPECIFIC GOAL OR DELIVERABLE. • EXAMPLE: LAUNCHING A NEW FEATURE LIKE "DOWNLOADS FOR YOU." • FOCUSED ON EXECUTION AND DELIVERY OF A SPECIFIC FEATURE OR UPDATE. • OWNED BY A PROJECT MANAGER. • PRODUCT AT NETFLIX • ONGOING OFFERING THAT SERVES USER NEEDS AND DELIVERS CONTINUOUS VALUE. • EXAMPLE: THE NETFLIX STREAMING PLATFORM. • FOCUSED ON LONG-TERM VISION, STRATEGY, AND USER ENGAGEMENT. • OWNED BY A PRODUCT MANAGER. • PROGRAM AT NETFLIX • A COLLECTION OF RELATED PROJECTS MANAGED TOGETHER TO ACHIEVE STRATEGIC OBJECTIVES. • EXAMPLE: NETFLIX’S GLOBAL EXPANSION INITIATIVE (MULTIPLE REGIONAL PROJECTS). • FOCUSED ON COORDINATION, RISK MANAGEMENT, AND ENSURING ALIGNMENT ACROSS MULTIPLE PROJECTS. • OWNED BY A PROGRAM MANAGER. 08

9. TYPES OF PRODUCT MANAGERS AT NETFLIX • Consumer PM (UX & UI) • FOCUSES ON OPTIMIZING USER EXPERIENCE AND INTERFACE DESIGN TO ENSURE A SEAMLESS AND ENGAGING PLATFORM. • GROWth PM (Subscriber Acquisition/Retention) • DRIVES STRATEGIES TO ACQUIRE NEW SUBSCRIBERS AND ENHANCE RETENTION THROUGH DATA-DRIVEN GROWTH INITIATIVES. • Content PM (Originals & Partnerships) • MANAGES NETFLIX’S CONTENT STRATEGY, INCLUDING ORIGINALS AND EXTERNAL PARTNERSHIPS, TO EXPAND THE LIBRARY. • Platform PM (Tech Infrastructure) • OVERSEES THE TECHNICAL INFRASTRUCTURE TO ENSURE NETFLIX’S STREAMING PLATFORM IS SCALABLE, RELIABLE, AND EFFICIENT. • Data PM (Personalization & Analytics) • Utilizes data to personalize user experiences and optimize content recommendations for higher engagement. 09

10. THE PRODUCT-DEVELOPMENT LIFE CYCLE • Ideation: Generating ideas fROM DAta and customer insights • Validation: Testing concepts with A/B experiments • Planning: Creating detailed product roadmaps • DESIGN & DEVElopment: Collaborative agile sprints • Testing: Beta launches on select devices/regions • LAUNCH: PHased rollouts to global users • Post-Launch: Analyzing metrics, iterating on feedback 10

11. ROLL NO: NETFLIX - MANAGING INNOVATIVE PRODUCT TEAMS 160122733316 BY: KONDAPURAM PRASHANTH REDDY 11

12. ORGANIZING AND MANAGING A PRODUCT TEAM AT NETFLIX • FLAT CULTURE: NETFLIX IS KNOWN FOR ITS "FREEDOM AND RESPONSIBILITY" CULTURE. PRODUCT TEAMS ARE EMPOWERED TO MAKE DECISIONS WITH MINIMAL HIERARCHY. • CROSS-FUNCTIONAL TEAMS: TEAMS INCLUDE PRODUCT MANAGERS, ENGINEERS, DESIGNERS, DATA SCIENTISTS, AND CONTENT STRATEGISTS WORKING TOGETHER. • HIGH-PERFORMANCE EXPECTATIONS: NETFLIX HIRES ONLY HIGH-PERFORMING INDIVIDUALS AND ALLOWS AUTONOMY TO INNOVATE. 12

13. NETFLIX – 5C ANALYSIS 13

14. HYPOTHESIS RESULT NETFLIX – CREATING AN OPPORTUNITY HYPOTHESIS • NETFLIX IDENTIFIED AN OPPORTUNITY IN OFFLINE DOWNLOADS FOR USERS IN LOW-BANDWIDTH AREAS. • IF USERS CAN DOWNLOAD SHOWS AND MOVIES, THEN ENGAGEMENT IN LOW-INTERNET REGIONS WILL INCREASE. • HUGE INCREASE IN APP ENGAGEMENT AND RETENTION IN REGIONS LIKE INDIA AND BRAZIL. 14

15. NETFLIX'S A/B TESTING APPROACH NETFLIX – VALIDATING THE HYPOTHESIS • USES A/B TESTING RIGOROUSLY TO VALIDATE IDEAS. • NETFLIX USES A/B TESTING TO VALIDATE ITS DESIGN AND PRODUCT IDEAS. • USERS ARE SPLIT INTO GROUPS. • EACH GROUP SEES A DIFFERENT VERSION OF THE SAME FEATURE. • NETFLIX TRACKS WHICH VERSION PERFORMS BETTER BASED ON USER ENGAGEMENT. • DATA-DRIVEN DECISION MAKING USING USER BEHAVIOR, VIEWING PATTERNS, AND CHURN RATES. 15

16. NETFLIX EXAMPLE – PERSONALIZED THUMBNAILS NETFLIX – CREATING THE PRODUCT REQUIREMENTS DOCUMENT (PRD) • GOAL: INCREASE ENGAGEMENT THROUGH CUSTOM THUMBNAILS • REQUIREMENT: SHOW DIFFERENT IMAGES BASED ON USER PREFERENCES • SUCCESS METRIC: HIGHER CLICK-THROUGH RATE (CTR) • A PRODUCT REQUIREMENTS DOCUMENT (PRD) DEFINES THE WHAT, WHY, AND HOW OF A PRODUCT OR FEATURE. IT ACTS AS A SINGLE SOURCE OF TRUTH FOR CROSS-FUNCTIONAL TEAMS 16

17. PRODUCT MANAGERS (PMS) AT NETFLIX: AUDIENCE-BASED CONTENT CREATION A/B TESTING & EXPERIMENTS NETFLIX – PRODUCT MANAGERS VS DESIGNERS • FOCUS ON BUSINESS GOALS, USER NEEDS, AND PRODUCT STRATEGY • DEFINE WHAT SHOULD BE BUILT AND WHY • EXAMPLE: DECIDING TO TEST PERSONALIZED THUMBNAILS TO IMPROVE ENGAGEMENT • USES VIEWING TRENDS TO CREATE ORIGINALS • HITS LIKE STRANGER THINGS & SQUID GAME DRIVEN BY INSIGHTS • REGION-SPECIFIC GENRE TARGETING • REGULAR A/B TESTS ON UI, PLAYBACK, FEATURES • ADOPTS ONLY USER-PREFERRED CHANGES • ENHANCES PLATFORM BASED ON ACTUAL BEHAVIOR 17

18. BY: NETFLIX - DESIGN PROCESS NAGENDRA ROLL NO: 160122733195 18

19. THE DESIGN PROCESS AT NETFLIX: USABILITY TESTING • NETFLIX INVESTS HEAVILY IN USABILITY TESTING TO OPTIMIZE EVERY PART OF THE USER EXPERIENCE. • COMMON TESTING ELEMENTS: HOMEPAGE LAYOUT, THUMBNAIL PREVIEWS, EPISODE AUTO-PLAY. • GOAL: REDUCE FRICTION — ENSURE USERS FIND WHAT THEY WANT WITHIN 90 SECONDS. • EXAMPLE: TESTING NEW AUTOPLAY PREVIEWS TO INCREASE USER ENGAGEMENT TIME. 19

20. NETFLIX’S STEPS IN USABILITY TESTING 1️⃣ HYPOTHESIS: (E.G., NEW THUMBNAIL DESIGN INCREASES WATCH TIME). 2️⃣ RECRUIT USERS: DIVERSE GROUPS FROM MULTIPLE REGIONS. 3️⃣ TASK ASSIGNMENTS: FIND A MOVIE TO WATCH WITHIN 2 MINUTES. 4️⃣ OBSERVATION: EYE TRACKING, CLICK BEHAVIOR, CONFUSION POINTS. 5️⃣ FEEDBACK GATHERING: SURVEYS + REAL-TIME REACTIONS. 6️⃣ ANALYSIS AND ITERATION: ROLLOUT IF KPIS (KEY PERFORMANCE INDICATORS) IMPROVE. 20

21. WHY USABILITY TESTING IS CRITICAL FOR NETFLIX • NETFLIX AVOIDS ASSUMPTIONS ABOUT USER BEHAVIOR; DATA DRIVES DESIGN DECISIONS. • IMPROVES PERSONALIZATION ENGINES (E.G., CUSTOM THUMBNAILS, GENRE RECOMMENDATIONS). • DIRECTLY IMPACTS RETENTION RATE AND SUBSCRIPTION RENEWALS. • CULTURAL SENSITIVITY: TESTING ENSURES CONTENT DISCOVERY ACROSS 190+ COUNTRIES. 21

22. DIETER RAMS’ DESIGN PRINCIPLES REFLECTED AT NETFLIX • LESS, BUT BETTER: MINIMAL HOMEPAGE WITH FOCUS ON CONTENT. • UNDERSTANDABLE: SMART UI LIKE "CONTINUE WATCHING" FOR UNFINISHED SHOWS. • AESTHETIC QUALITY: DARK THEME FOR IMMERSIVE VIEWING EXPERIENCE. • LONG-LASTING DESIGN: CONSISTENT, FAMILIAR INTERFACE OVER YEARS. 22

23. EXAMPLES OF DIETER RAMS' PRINCIPLES AT NETFLIX • INNOVATION: INTERACTIVE STORYTELLING (BANDERSNATCH, KALEIDOSCOPE). • USEFULNESS: DOWNLOAD OFFLINE FEATURE FOR LOW BANDWIDTH REGIONS. • HONESTY: CLEAR INFO ABOUT SUBSCRIPTION, NO HIDDEN CHARGES. • ENVIRONMENTAL FRIENDLINESS: STREAMING EFFICIENCY IMPROVEMENTS TO REDUCE DATA WASTE. 23

24. PRODUCT/ENGINEERING RELATIONSHIPS AT NETFLIX • NETFLIX FOSTERS "FREEDOM AND RESPONSIBILITY" AMONG TEAMS. • PMS CREATE NORTH STAR GOALS (EXAMPLE: "MAKE RECOMMENDATIONS 10% FASTER"). • ENGINEERS PROPOSE TECHNICAL SOLUTIONS (E.G., IMPROVED CACHING, SERVER OPTIMIZATION). • CLOSE COLLABORATION ENSURES SCALABLE, HIGH-QUALITY DELIVERY. 24

25. KEY COLLABORATION CHALLENGES AND HOW NETFLIX SOLVES THEM ❗ FEATURE CREEP DUE TO AMBITIOUS IDEAS: CONTROLLED BY SPRINT GOAL DISCIPLINE. ❗ COMMUNICATION GAPS: DAILY STANDUPS, OKR ALIGNMENT MEETINGS. ❗ ENGINEERING RESOURCE CRUNCH: CROSS-FUNCTIONAL PRIORITIZATION FRAMEWORKS. 25

26. SOFTWARE DEVELOPMENT AT NETFLIX: EVOLUTION • 🎬 EARLY DAYS: WATERFALL MODELS FOR DVD LOGISTICS SYSTEMS (BATCH PROCESSING). • 📈 SHIFT TO AGILE IN STREAMING ERA: DYNAMIC USER NEEDS → ITERATIVE DEVELOPMENT. • 🏗️ MICROSERVICES ARCHITECTURE: ENABLES SMALL, INDEPENDENT TEAMS TO DEPLOY QUICKLY. 26

27. WATERFALL DEVELOPMENT AT NETFLIX (2000–2008) • USED FOR TRADITIONAL OPERATIONS: SHIPPING DVDS, INVENTORY MANAGEMENT. • CHARACTERISTICS: • LIMITATIONS: COULD NOT ADAPT TO USER BEHAVIOR OR NEW TECH FAST ENOUGH. • SLOW UPDATES • FULL ROLLOUTS AFTER LONG PHASES 27

28. AGILE DEVELOPMENT AT NETFLIX (POST-2008) • AGILE ADOPTED TO MANAGE STREAMING SERVICE EXPANSION. • CONTINUOUS DELIVERY PIPELINES: • NETFLIX ENGINEERS PUSH THOUSANDS OF UPDATES PER DAY. • NEW FEATURES RELEASED VIA CANARY DEPLOYMENTS. • FOCUSON SPEED, EXPERIMENTATION, USER-FIRST DEVELOPMENT. 28

29. SCRUM AT NETFLIX: PRACTICES AND IMPACT • SCRUM TEAMS HANDLE: • PERSONALIZED RECOMMENDATIONS • UI/UX UPGRADES • MOBILE STREAMING OPTIMIZATION • SHORT 2-WEEK SPRINTS DELIVER REAL IMPACT (E.G., REDUCING APP LOAD TIME BY 20%). 29

30. KANBAN AT NETFLIX: MANAGING OPERATIONS • LIVE PRODUCTION SUPPORT (SRE TEAMS) USE KANBAN: • INCIDENT TICKETS (E.G., STREAMING OUTAGE REPORTS) • SYSTEM UPGRADES • BENEFITS: • REAL-TIME FLOW VISUALIZATION • BOTTLENECK DETECTION AND RESOLUTION 30

31. ROADMAPPING AT NETFLIX • PRODUCT TEAMS USE FLEXIBLE ROADMAPS: • TOOLS: • ALWAYS LEAVES SPACE FOR RAPID PIVOTS BASED ON EMERGING TRENDS (E.G., TIKTOK-STYLE CONTENT). • FEATURE ROADMAP (E.G., INTERACTIVE TITLES) • PLATFORM ROADMAP (E.G., OPTIMIZING STREAMING QUALITY) • AHA! FOR HIGH-LEVEL STRATEGY. • TRELLO + JIRA FOR TEAM EXECUTION-LEVEL PLANNING. 31

32. PROTOTYPING AT NETFLIX: FROM CONCEPT TO REALITY • TOOLS: FIGMA, ADOBE XD, INTERNAL PROTOTYPING PLATFORMS. • PROTOTYPES TESTED INTERNALLY ("DOGFOODING") BEFORE EXTERNAL A/B TESTING. • EXAMPLES: • DIFFERENT LAYOUTS FOR TOP 10 RANKINGS TESTED ACROSS DEVICES. • NEW PLAYER CONTROLS (E.G., SKIP INTRO) PROTOTYPED AND TESTED. 32

33. SPRINT TOOLS AT NETFLIX: DRIVING EFFICIENCY • JIRA: SPRINT PLANNING, BACKLOG GROOMING, BUG TRACKING. • CUSTOM INTERNAL DASHBOARDS: REAL-TIME TRACKING OF EXPERIMENT PERFORMANCE. • KEY METRIC: TIME-TO-MARKET FOR NEW FEATURES. 33

34. WHY THESE PRACTICES ARE ESSENTIAL FOR NETFLIX’S SUCCESS • USABILITY TESTING ENSURES CUSTOMER DELIGHT. • AGILE & SCRUM DRIVE SPEED AND INNOVATION. • DESIGN THINKING (RAMS’ PRINCIPLES) ENSURES CONSISTENCY AND TRUST. • PRODUCT-ENGINEERING COLLABORATION ENSURES QUALITY AND SCALABILITY. • NETFLIX REMAINS A GLOBAL LEADER BY BUILDING WITH THE USER IN MIND, ADAPTING FAST, AND ITERATING RELENTLESSLY. 34

35. NETFLIX - MARKET DEVELOPMENT AND COMMERCIALIZATION BY: SYED UZAIR AYAN AHMED ROLL NO: 160122733202 35

36. MARKET TYPE OVERVIEW • B2C MODEL: • OFFERS SUBSCRIPTION-BASED STREAMING DIRECTLY TO CONSUMERS GLOBALLY. • GLOBAL CONSUMER MARKET: • MASS MARKET REACH ACROSS 190+ COUNTRIES. • TAILOR CONTENT FOR DIVERSE GEOGRAPHIC & DEMOGRAPHIC SEGMENTS. • SUBSCRIPTION-BASED (SVOD): • MONTHLY PLANS (BASIC TO PREMIUM). • FOCUS ON ORIGINAL CONTENT & USER RETENTION. • COMPETITIVE LANDSCAPE: • COMPETES WITH GLOBAL (DISNEY+, PRIME VIDEO) & REGIONAL (HOTSTAR, IQIYI) PLATFORMS. • ALSO DISRUPTS TRADITIONAL TV & CABLE SERVICES. • MARKET STRUCTURE: • OPERATES IN MONOPOLISTIC COMPETITION WITH PRODUCT DIFFERENTIATION & MODERATE PRICING POWER. 36

37. MARKETING CHALLENGES FACED BY NETFLIX • RISING COMPETITION : • INCREASING NUMBER OF OTT PLAYERS LIKE AMAZON PRIME, DISNEY+, HBO MAX, ETC. • CONTENT SATURATION : • HIGH DEMAND FOR FRESH, ENGAGING CONTENT CONSTANTLY. • SUBSCRIBER RETENTION: • DIFFICULT TO MAINTAIN LONG-TERM SUBSCRIPTIONS, ESPECIALLY AFTER BINGE-WATCHING POPULAR SERIES. • REGIONAL PREFERENCES & CULTURAL DIFFERENCES : • NEED FOR HYPER-LOCALIZED CONTENT IN INTERNATIONAL MARKETS. • BALANCING GLOBAL VS. LOCAL CONTENT STRATEGY. • PRICING SENSITIVITY IN EMERGING MARKETS : • IN COUNTRIES LIKE INDIA OR BRAZIL, SUBSCRIPTION COST IS A BARRIER. • COMPETING WITH FREE OR CHEAPER ALTERNATIVES. • PASSWORD SHARING : • REDUCES POTENTIAL REVENUE. • LEADS TO UNMONETIZED USER BASE. 37

38. KNOW YOUR CUSTOMER - NETFLIX'S TARGET AUDIENCE • GLOBAL REACH:AVAILABLE IN 190+ COUNTRIES, MAKING NETFLIX A TRULY GLOBAL PLATFORM. • AGE GROUP: • PRIMARILY GEN Z AND MILLENNIALS. • AGE RANGE MOSTLY 18–34 YEARS. • INCOME LEVEL: • MOST USERS EARN BETWEEN $25,000 – $50,000 ANNUALLY. • GENDER DISTRIBUTION: • 52% FEMALE AND 48% MALE, SHOWING AN ALMOST EQUAL GENDER SPLIT. • TAILORED CONTENT: • NETFLIX LEVERAGES BEHAVIORAL INSIGHTS, DATA, AND REGIONAL ANALYSIS TO CREATE PERSONALIZED RECOMMENDATIONS AND LOCALIZED CONTENT. • CUSTOMER SEGMENTATION: • NETFLIX SEGMENTS CUSTOMERS BASED ON AGE, REGION, CONTENT PREFERENCES, AND WATCHING HABITS FOR A PERSONALIZED EXPERIENCE. 38

39. NETFLIX’S 4PS OF MARKETING PRODUCT • ON-DEMAND STREAMING OF MOVIES, SERIES, DOCUMENTARIES. • ORIGINAL CONTENT (E.G., STRANGER THINGS, THE CROWN). • KIDS' CONTENT, INTERNATIONAL TITLES, AND INTERACTIVE SHOWS. • FEATURES: DOWNLOADS, PROFILES, RECOMMENDATIONS. 39

40. PRICE NETFLIX’S 4PS OF MARKETING • TIERED PLANS: BASIC TO PREMIUM. • VALUE-BASED PRICING FOR QUALITY CONTENT. • REGION-SPECIFIC PRICING. • FREE TRIALS & OCCASIONAL PROMOS. 40

41. PLACE NETFLIX’S 4PS OF MARKETING • AVAILABLE IN 190+ COUNTRIES. • MULTI-DEVICE ACCESS (TV, MOBILE, CONSOLE, ETC.). • REGIONAL CONTENT & LANGUAGES. • OFFLINE VIEWING & GLOBAL SERVERS. 41

42. PROMOTION NETFLIX’S 4PS OF MARKETING • SOCIAL MEDIA & DIGITAL ADS. • PROMOTES ORIGINALS AS MAIN ATTRACTION. • INFLUENCER COLLABORATIONS. • CAMPAIGNS LIKE “SAVE THE DATES” FOR UPCOMING CONTENT. 42

43. LOCALIZED CONTENT STRATEGY DATA-DRIVEN PERSONALIZATION NETFLIX – CUSTOMER DEVELOPMENT STRATEGY • NETFLIX USES AI & ML ALGORITHMS TO RECOMMEND PERSONALIZED CONTENT BASED ON WATCH HISTORY, LIKES/DISLIKES, AND SEARCH QUERIES. • LOCAL-LANGUAGE CONTENT WITH SUBTITLES AND DUBBING TO CATER TO DIVERSE AUDIENCES GLOBALLY. • EXAMPLE: NETFLIX’S ORIGINAL CONTENT IN KOREAN, SPANISH, AND HINDI. 43

44. NETFLIX – CUSTOMER DEVELOPMENT STRATEGY FLEXIBLE SUBSCRIPTION PLANS • OFFERING REGION-SPECIFIC PRICING MODELS (E.G., MOBILE-ONLY PLANS IN INDIA) TO MAKE THE SERVICE ACCESSIBLE ACROSS DIFFERENT INCOME LEVELS. CROSS-PLATFORM ACCESSIBILITY • NETFLIX IS AVAILABLE ON MOBILE, SMART TVS, LAPTOPS, AND GAMING CONSOLES, ENSURING USERS CAN ACCESS CONTENT ON ANY DEVICE. 44

45. PASSWORD SHARING CRACKDOWN (2023) MAJOR MARKETING MISTAKES BY NETFLIX AND THEIR IMPACT • PASSWORD SHARING RESTRICTIONS ANGERED LOYAL USERS. • CAUSED NEGATIVE MEDIA COVERAGE AND USER DISSATISFACTION. • LESSON: CUSTOMER-FRIENDLY ALTERNATIVES SHOULD BE IMPLEMENTED BEFORE RESTRICTING SHARED SERVICES. PRICING CONFUSION AND BACKLASH (2011) • SPLIT STREAMING AND DVD PLANS RESULTED IN PRICE HIKES. • LED TO 800,000+ SUBSCRIBER LOSS AND A DROP IN STOCK VALUE. • LESSON: TRANSPARENT COMMUNICATION AND GRADUAL CHANGES IN PRICING ARE ESSENTIAL FOR CUSTOMER RETENTION. 45

46. WEAK GLOBAL LOCALIZATION (2017-2020) MAJOR MARKETING MISTAKES BY NETFLIX AND THEIR IMPACT • SLOW INVESTMENT IN LOCAL CONTENT HURT GROWTH IN INTERNATIONAL MARKETS. • COMPETITORS LIKE DISNEY+ HOTSTAR THRIVED WITH BETTER LOCALIZATION. • LESSON: TAILORING CONTENT AND MARKETING TO SPECIFIC REGIONAL PREFERENCES IS KEY TO SUCCESSFUL GLOBAL EXPANSION. CONTENT CANCELLATIONS WITHOUT WARNING (2019-2020) • SUDDEN CANCELLATIONS OF POPULAR SHOWS LIKE THE OA UPSET FANS. • RESULTED IN SOCIAL MEDIA BACKLASH AND TRUST ISSUES. • LESSON: ENGAGE WITH FANS AND COMMUNICATE BETTER BEFORE CANCELING BELOVED CONTENT. 46

47. DEMOGRAPHIC SEGMENTATION SEGMENTING THE MARKET • TARGETS KIDS, GEN Z, MILLENNIALS, FAMILIES & OLDER VIEWERS. • FOCUS ON TECH-SAVVY USERS WITH BINGE-WATCH HABITS. • KIDS CONTENT + STRONG PARENTAL CONTROLS. • CLASSIC FILMS AND DOCUMENTARIES FOR OLDER AUDIENCES. GEOGRAPHIC SEGMENTATION • OPERATES IN 190+ COUNTRIES (EXCEPT CHINA, NORTH KOREA, RUSSIA). • LOCALIZED CONTENT, DUBBING, SUBTITLES. • REGIONAL HITS: SACRED GAMES (INDIA), MONEY HEIST (SPAIN), SQUID GAME (KOREA). PSYCHOGRAPHIC SEGMENTATION BEHAVIORAL SEGMENTATION • TRACKS WATCH TIME, PREFERENCES, BINGE-WATCHING PATTERNS. • OFFERS FEATURES LIKE CONTINUE WATCHING, WATCHLIST, SKIP INTRO. • SUGGESTS CONTENT BASED ON USER HABITS • APPEALS TO USER LIFESTYLES & MOODS. • CATEGORIES FOR THRILL-SEEKERS, LEARNERS, COMEDY LOVERS, ETC. • ALGORITHMS PERSONALIZE CONTENT BASED ON EMOTIONS AND INTERESTS. 47

48. SEGMENTING THE MARKET 48

49. STRATEGIC EXPANSION PHASES: • PHASE 1: STARTED IN CANADA (2010) TO TEST INTERNATIONAL WATERS. • PHASE 2: EXPANDED TO 50 COUNTRIES WITH A FOCUS ON LATIN AMERICA AND EUROPE. • PHASE 3: REACHED 190 COUNTRIES BY 2016 WITH MULTI-LANGUAGE INTERFACES, SUBTITLES, AND LOCALIZED MARKETING. NETFLIX'S GLOBAL EXPANSION STRATEGY NETFLIX’S GLOBAL EXPANSION HAS BEEN A DEFINING ELEMENT OF ITS SUCCESS. STARTING AS A U.S.-ONLY SERVICE, THE COMPANY HAS GROWN INTO A WORLDWIDE STREAMING GIANT OPERATING IN over 190 countries. By 2017, it had close to 73 million international subscribers, and in 2018, international revenues exceeded domestic revenues for the first time — a landmark achievement in the company’s history. 49

50. CHALLENGES & STRATEGIC RESPONSES: EXPONENTIAL GLOBALIZATION MODEL: NETFLIX'S GLOBAL EXPANSION STRATEGY • FACED REGULATORY BARRIERS, CULTURAL PREFERENCES, AND LOCAL COMPETITORS. • INNOVATED WITH LOCAL CONTENT AND FLEXIBLE PRICING MODELS TO ADDRESS THESE CHALLENGES. • RAPID EXPANSION THROUGH A SCALABLE MODEL, ALLOWING NETFLIX TO ENTER MARKETS FASTER. • FOCUSED ON FEEDBACK LOOPS AND ADAPTING TO LOCAL PREFERENCES TO ENSURE CONTINUOUS GROWTH. KEY FACTORS IN NETFLIX'S GLOBAL SUCCESS 50