4 ways Netflix is growing in 190 countries

admin September 08, 2021 0

 

 Ziepnet - Who doesn't know Netflix? an American company that provides streaming services for popular movies and TV shows and is currently one of the largest digital streaming service providers in the world. Netflix continues to move fast to deliver a wide variety of original content on its service.

As of 2015, Netflix is active in more than 190 countries, including 73 million users outside the United States. and in 2018, Netflix's revenue surpassed domestic streaming revenue for the first time internationally. This is an extraordinary achievement for a company that so far has only developed in America.

Don't try to open up all markets at the same time.

Instead, Netflix carefully selects its initial target market, which will likely vary between markets. For example, the early international expansion into Canada, which is geographically close and has many similarities to the United States.

Netflix will thus have the experience of opening up its market in a country that will later face the challenge of being "foreign" by its users.

Product improvement

Recognizing that in some parts of the world, especially in developing countries, Netflix also has custom features that are easier to use, including account creation, authentication and streaming efficiency for mobile use.

In relation to their destination, all users can spend time watching a number of seasons without having to wait due to country differences. and all can be enjoyed with a monthly subscription fee without also having to follow a broadcast schedule or buy a device.

Netflix is ​​also focused on improving local language options for the user interface, subtitles, and voiceover. In addition, Netflix is ​​reacting to the new markets it is entering. For example, when Vodafone launched its TV service for its subscribers in Ireland, it added a dedicated Netflix button area to its remote control to make it easier for users to navigate to the platform.

In addition, through the use of technology foundations such as the Black Mirror film series, in which this series tells about the Internet of Things and also includes a part of this series, the viewer can choose their own storyline.

Exponentielle Globalisierung

Insgesamt ist die Expansionsstrategie von Netflix ein neuer Ansatz, der als exponentielle Globalisierung bezeichnet werden kann. Diese Expansion in viele Länder und Kunden wird sorgfältig verwaltet und mit hoher Geschwindigkeit durchgeführt.

In addition, there are three phases that Netflix is going through for its global expansion, namely:

1. The first phase, dealing with globalization with the traditional expansion model.

• Work with device manufacturers, cellular and TV operators, and local Internet service providers.

• Working with multiple parties such as the government and parties related to related industries in the country.

• Local adaptation, approaching users by adapting the culture of the country in question.

2. The second phase, faster and wider international expansion.

•  Partnership with international market players
• Many invest in content with geographic preferences in order to invest in device components to use the latest technology.

3. The third phase, launch and customization of the services.

• gain experience with the content people love, the markets they are responding to, and how companies need to manage their own growth.
• Alignment of streaming service tariffs in several countries to combat cheaper offers from their competitors. 

 As the graph below shows, Netflix's subscriber growth over the past five years has been largely driven by its global expansion. As of late 2015, Netflix has gained 96.3 million paying subscribers, including 78.6 from outside the US.

Use streaming Netflix every year

A mix of global and regional content

Netflix spent approximately $ 400 million between 2019 and 2020 developing original content as well as licensing other content for markets.

This approach has helped Netflix grow much faster than the competition. In the future, Netflix will compete increasingly harder not only from other global players like Amazon Prime, but also from newcomers and various other local streaming companies. In this case, it should further expand its mix of global and regional content, for example by creating a special series or a mini-series of the film.

With the spread of traditional markets, the growth of the Internet in general and the adaptation of its use. Netflix has shown that this strategy is now a very good choice. However, it does require mastery of the local context, including the ability to acquire local knowledge and display sensitivity and responsiveness.

With the increasing spread of "winners-takes-all", other companies operating on the market have to pursue a similar internationalization strategy as Netflix. And regarding Netflix's next phase of growth and how it will respond to new challengers.