If you have ever been anxious about returning the movie you rented and been disheartened at not getting to watch the movie you wanted because it was already rented, then you've experienced movie rentals in all its totality. This problem may seem non-existent now but over 2 decades ago it was a real serious one.2 professionals who were also budding entrepreneurs decided to seal the gap in the market by making movie rentals digital.
Well, that's your lesson number one for success, identify what the customer wants and give it to them.
How well you give it and the consistency is what makes you a leader and that's what the founders of Netflix followed.
Who knew that from an average upstart DVD rental business, one could make it to more than a $100 billion-dollar company in a span of just 20 years? Right from renting movies to having over 150 million paying subscribers worldwide on the OTT (Over-the-top) platform, Netflix holds the 164th position among the world’s fortune 500 companies.
How did they do it? Read on to know how they made it to the top in just a few years of business.
The Conception -
They began their journey in 1997 by offering frictionless DVD rentals by setting up a mail-order format for renting DVDs. This idea seems to have stemmed from one of the owners having to pay a huge amount as a late fee. Even though most people considered this as a convenient way of leasing DVDs, this was just Netflix’s way of gaining a tentative toehold in an intensely competitive market. With 30 employees and just 925 movies to give on rent, they began their journey which has now become an inspiring tale for entrepreneurs.
Dared to be different
In an era where Video Home System (VHS) was leading the market, Netflix decided to start a DVD rental business and even managed to put an end to the single rental system. They managed to scale up the ladder with a business model that included unlimited rentals with a flat fee void of any due dates, shipping fees, and handling fees as well.
Set out to be a leader -
Right from the beginning, they did not want to be a company that just mailed content, instead they wanted to become a craze in the center of the digital revolution. They repeatedly touched the vertex of content marketing and constantly upgraded themselves with the changing technology. Soon their wins came in the form of agreements for streaming million-dollar movies with Starz Entertainment, Lions Gate Entertainment, MGM, and Paramount Pictures. They did not restrict themselves to streaming already created content, instead, they decided to produce and upload their own video series, shows, and movies. This move ultimately sealed doors of failure and led them to repurposing and reviving old, and popular content.
The secret to their success - Customers at the core of everything.-
Every time they grew and made changes, they ensured that their customers were the primary focus of each decision being made. Right from user profiles, to smart downloads, and suggestions, all of it was customer-centric.
Social media is the key -
They made sure that they announced their simple milestones, used the hashtags strategically and even ensured they maintain proper communication with customers on social media. Being there for their customers is what they do best.
Netflix has spent billions of dollars on content and even taken to producing original content that is loved by billions of people across the globe. It also holds second in terms of the global internet traffic share. There may still be a long way for Netflix to go but having a major hold on video streaming world-wide, its growth is unstoppable.
With binge-watching a term synonymous with Netflix, they sure had their shares of failures but that is what has led them to succeed with innovation and ambition at the same time.
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