Imagine that you’re the CEO of Netflix. What is your strategy for the next 10 years?

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Imagine that you’re the CEO of Netflix. What is your strategy for the next 10 years?

Asked at Netflix over a year ago

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Nitasha Walia · Answer 1 · 2022-07-20T18:05:03+0000

I would like to start with reminding us of Netflix's Vision: "At Netflix, we want to entertain the world."

That being said, Netflix is essentially a marketplace that offers content prroducers to cater to viewers. Granted that Netflix itself has become a content produce in recent times. Hence, for Netflix to be successful, they have to provide a steller experience for producers and an exciting,sticky experience for consumers.

Next, lets review competition. Netflix's competition ranges from

Traditional cable provider
Streaming services such as Hulu, Apple TV, Disney + etc
Adjacent market of TikTok, Instagram, Youtube

Netflix strength:

1. Global content and audience (India and other Asian countries)

2. Significant free user base

3. Usability

Let's talk about who we are strategizing for by disucssion user segments (viewers):

Students
Professionals
Retired

User segmentation (Producers):

Distributors
Grassroot

Strategy:

Surface global content as a diffrentiation to streaming competitors
Steller freemium model: Attract more free uses
Monetize free users with ads: Revenue
Experiment with the future trends:
1. VR: Meta verse - watch parties
2. Gaming
3. AR: 3D content - be in the show

Prioritisation: (Impact, Effort, Strategic alignment)

1. Surface global content as a diffrentiation to streaming competitors (M, M, Yes)

Steller freemium model: Attract more free uses (M, M, Yes)
Monetize free users with ads: Revenue (H, L, Maybe)
Experiment with the future trends:
1. VR: Meta verse - watch parties (H, H, Yes)
2. AR: 3D content - be in the show (H, H, Yes)
3. Gaming (M, H, Maybe)

With the prioritisation exercise above, I would recommend to kick off with:

1. Monetize free users with ads: Revenue (H, L, Maybe)

2. Surface global content as a diffrentiation to streaming competitors (M, M, Yes) - continue to do this

3. Experiment with the future trends:

VR: Meta verse - watch parties (H, H, Yes)
AR: 3D content - be in the show (H, H, Yes)

tarun myneni · Answer 2 · 2022-08-25T17:40:09+0000

that's a great question. lets start by establishing a common ground and discussing Netflix mission.

Netflix: a content streaming platform, which also produces content

Mission: to entertain the world.

now as a CEO i would like to enhance our mission statement as

To Entertainment the world in everyway !!!

so I would like to establish Netflix as the primary way to be entertained in every part of their life and also do more business...

so as we know what our objective is, we shall see who and what.

WHO:

who are the my users and their usecases

I would go by age to start with..

1-5 : cartoons or baby shark videos, toys, play schools.

5-12 : learning and entertainment

12-19 : THE TEENS

experiences, dating, learning, exploring..

20-30 : meaningful content, books, dating...

30+ : religious content, family vibe, vacations, Philanthropy..

so what I did here is not to categorize my users, its just various usecases, one can think of by age.

WHAT:

*Learning: at all ages the primary thing common is learning. so we shall work on more learning content and make it entertaining. we can acquire any strong market players to start with and improve as we go.

* Toys: toys are great sources of entertainment for kids. so making them related to our content. merchandising to be precise.

* Netflix and Chill: netflix is identified with small screen entertainment. we can make it to bigscreen as well. centers would be created to watch content on bigscreens and charged by use.

* Dating: everyone puts Netflix and chill on dating sites. so why not bring it here.. a platform to show matches based on content you watch.

* Netflix Studios: a way of life. giving people a chance to be in the Netflix world, like any movie set, house used in a series etc.. let them live in the world they saw.

* Shopping: all the merchandise would be available online, chill centers, studios etc..

* R&D: we can use new technology like VR, AR to bring more entertainment in the world of gaming and see what we can do there.

Priority:

I can use a weighted(need/give) matrix here to see what we can take next.

as everything seems nice and big potential opportunity. we can start with by using the strength we have. so Chill centers and merchandising would be our priority for this quarter. we shall try to collaborate/partner with big players and take it to the big screens.

Summary: as the CEO of Netflix we would stay contained to our mission and entertain the world better. with priority on centers to watch netflix and shopping.

Krishna · Answer 3 · 2024-08-03T21:04:36+0000

Goal

Any objective → assume that revenue is metric
Secondary metric → market share

Mission

Make entertainment available within fingertips with most flexibility

Strennghts

First mover advantage
A lot of data and lot of users
Many popular shows/tv aries originals that are very popular

Weaknesses

It has to rely on its partners to create valuable content - is this really a weakness?
It cancels tv shows due to which few people don't bother to follow or even be a subscriber as they feel watching is pointless as things end before they are resolved
It has very less valuale IP to market or make money on compared to other established companies

Competetion

Disney and other film studios followed creating their own and pulle dout tier content from platform
Disney and others also earn money from theatrical releases and other parks etc
Disney and others also create revenue from selling rights to their IP for merchandise or video games etc

5forces

Buyers: have leverage as many other subscription services are available
Suppliers: can take their content to multiple platforms and hence they have higher power
New entrants: its easy to create movies with new tech and so many others will come into this and will dilute the value proposition of netflix
Substitutes: rise of video games, AR/VR experiences
Rivalry: too high

Trends

even tech that can create videos with prompts which in future would be like people create their own movies with plots given as prompts
Rise of fully immersive tech experience – like 4D movie and personal AR/VR tech
Bundling from other companies(tv + games + parks/theatres) which would lock in customers and as everyone is competing for getting customer’s time –might be tough

Strategic choices

Increasing revenue: Partner with merchandise like mattel etc to sell original content IP so much that it becomes household like lego/marvel etc
As personal movies might increase in future due to genAI etc, what differentiates is the skill and nuances and brand power → suggest to create curated highly rated content and tie it with
Enter more and more markets and create more local content and become a goto place worldwide
Enter into different verticals like music,games(already there) → bundling is working but enhance efforts and make it a steal to consumers
Enter into VR gaming , VR film domain in a powerful fully immersive tech way and capture market there by investing a lot on this
Become a marketplace for individual creators where they can sell their films, popular GenAI films, whatever etc – so that as cost to create content decreases, marketing, distribution of it matters and so even without needing to create by ourselves, we can still win the market by being a marketplace

Evaluation

Is it going to create value for us in reaching more than 5B population
Are we leveraging current exploding tech with our offerings – history – rise of internet led to streaming – rise of next tech can be exploited for maybe powerful VR or some other experiences etc
Are we able to create revenue that justifies investments over 10 year period? how much of it can we recoup in short terma nd how much in long term?

Finally i would end with summarising the case with a brief summary