Brand Martini

This section of the blog features Brands from around the world and their marketing strategies. This will take you through the journeys which different brands have taken to reach to the top. Their founders, the initial stages, logos, takeovers, ad campaigns and many other stories will be shared. 



Industry: Video Rental and Online Streaming

Founded: 1997

Key People: Reed Hastings, CEO.

Netflix pioneered the “ship to your home” DVD rental business back in 1997.  This helped eliminate the need for brick-and-mortar stores. But Netflix did not remain fixated on competing for DVD rentals and sales – on “protecting its core” business.  Looking into  the future, the organization could see that digital movie rentals are destined to be dramatically greater than physical DVDs. Without  abandoning its traditional business, Netflix calmly moved forward with its digital download business, which is cheaper than the traditional business, but would “cannibalize” its own DVD sales and make the traditional business completely obsolete.

People are abandoning traditional viewing for 100% entertainment selection by download.  Modern televisions are computer monitors, capable of immediately viewing downloaded movies. The growth of movie (and other video) watching is going to keep exploding – just as the volume of videos on YouTube has exploded.  But it will be via new distribution.  And nobody today appears close  to having the future scenarios, delivery capability and solutions of Netflix.

Netflix is making another transition by shifting its focus from films from TV shows. The streaming service holds the  viewing of the TV series “House of Cards”. It has also gained acquisition of “Arrested Development”: Season 4. TV series now account for more than half of all Netflix viewing. Moreover, Netflix offers TV series in one gulp. Instead of releasing its series in one episode per week, like HBO, it releases the, in their entirety at once. Without standard episode-ending cliffhangers, House of Cards seems like one really long movie.

Netflix’s biggest challenge is now to get more streaming content to make the service better, while preserving its value. Part of that means it needs to convince studios to stream more of their best content through Netflix. (Some of that content is still only available on a plastic disc.) That’s why Netflix is so adamant to separate itself from the DVD business and speed up streaming adoption for studios and consumers.



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s