Marketing Planning & Marketingmix strategies plan, Netflix group

Marketing Planning & Marketingmix strategies                Netflix group                                        Assignment: 2nd part of marketing plan                                                                                                                                                                                                                

Netflix’s marketing plan pt. II                              Netflix’s goals and strategies for 2020

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Table of contents

Goal 1                                                                        3

Increasing Netflix content                                                3

Strategy                                                                4

Tactics                                                                4

Key point indicators                                                        6

Goal 2                                                                        8

Expansion on the Asian market                                        8

Strategy                                                                8

Key point indicators                                                        9

References                                                                10

Goal 1

By the end of 2020, Netflix wants to increase the original and licensed content by 13%.

Increasing Netflix content

Competition is in increasing and European regulations are getting stricter. Currently 63% of the content is licensed and 37% original. Netflix is losing licensed content as competitors are ending contracts and taking control of their own content. Great examples are Grey’s Anatomy, which is owned by Disney, Disney+ launched in November 2019 and Friends, which is owned by Warner and will be launching HBO Max in 2020. Both series are ranked 4th and 3rd most streamed shows on Netflix in 2018. Netflix’s very successful business strategy of leasing content from other companies is coming to and end, as it is becoming more and more difficult. On top of that, there’s the European content quota for streaming services that forces Netflix to have at least 30% of European content in its catalogue for European streamers. This shouldn’t be a huge challenge as Netflix already had the intention to adapt its catalogue for the European audience.

The main goals for Netflix are to lease content from European producers, to create content with European producers and generate content outside in general, which also consist of leasing and creating. The more original and exclusive content, the more Netflix can differentiate itself from its competitors.

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Expenditures on content have been consistently growing for 75% each year on average. This only indicates the money spent, and not the increase in content. Netflix has mostly been paying more to keep the content they already had. In fact, the content on Netflix has been decreasing, despite the increase of original content.

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The number of content also varies in every country. International subscribers account for 62% and the United States alone accounts for 38%.

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For Netflix to become bigger it must expand internationally but the United States remains and important market. Netflix’s growth in the United States slows but is goes hand in hand with the increase of prices and the lack of content. There’s little growth left but it’s crucial for Netflix took keep its subscribers. Therefore in this document we will focus on the increase of content in the United states.

Currently, in terms of shows and movies, Netflix’s catalogue for the United States offers exactly 5,849 titles. The goal for Netflix in 2020 is to increase it to 819 more. In 2010, Netflix had 530 TV shows and 6,755 movies. In 2018, the number of TV shows has nearly tripled, to 1,569, and the number of movies offered has decreased to 4,010. Netflix focusses more on TV shows than movies.

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Strategy

Considering the increase of competition and the ending of contracts, a lot of new content will have to come from Netflix itself. Every year billions are spent to produce new movies and shows. However, subscribers have been complaining about the lack of movies and shows that are taken off the catalogue. Quality Netflix Originals, exclusive leases and creating more budget to increase its catalogue is the only way for Netflix to stay successful and in front of its competitors in the long run.

One strategy is to invest in own content. One main reason why is because Netflix Originals were the most streamed shows in 2019. Netflix has signed million dollar deals with top level showrunners like Shona Rhimes, executive producers and head writer of Grey’s Anatomy and must continue to do so in order to produce more high quality content.

Even though they’re called Netflix Originals, Netflix isn’t always behind the production. The company mainly serves as a financer and a distributor. To increase more content, they should invest more in teams that can discover and close more deals with producers.

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