Netflix Advertising
Netflix has quickly become one of the leading content outlets on the web, and we are going to take a look at their quick rise to success through advertising and marketing. This year the company plans to release a set of episodes on the House of Cards series. We are going to look at how they continue to advertise in a rocky economy.
This article contains an image of the Netflix stock, which is doing well for a young company. Their stock started to rise around 2003 and hit a high mark in 2011, before the company decided to hike prices on their customers. One can note the time and moment when Netflix made this monumental mistake.
The link to the 10-Q form covering Netflix’s expenses for 2011 shows several points on the companies spending trends. In 2010 the group spent $75,219 on marketing, (which is an extremely low number for a stock with that high of value.) Their marketing budget for 2011 was $104,259. That is over a %20 increase following their low stock results in 2011.
The Huffington Post article written by Dean Jayson shows some interesting numbers on this topic. “Netflix alone has 25 million subscribers who eat up an eye-popping 33% of all internet bandwidth.” He also mentions, “The Netflix Effect, or the scarcity of ad space alongside ultra premium online video content, has a profound impact on the economics of digital media. Primarily, it’s helped prop up the CPM rates on Hulu and boosted the online video marketplace in general. Digital video ad spending is projected to grow 50% in 2012, that’s up from 33% growth in 2011.”
Netflix 10-Q Form Link
Huffington Post Web Link
TechCrunch | Netflix Marketing in 2013
•Netflix could easily have created a great show and then followed the linear programming model of releasing one episode each week. Surely this would have incentivized longer subscriptions (for those signing up for the one-month trial just to check out the show) and inspired week-to-week buzz.
•Instead, Netflix made it extremely easy for users to watch more “House of Cards” while they were already in content-consumption mode. Making all 13 chapters available is one thing, enabling auto-play after each one is another (if you’re like me, you the next chapter started automatically while you debated whether to stop for the evening).
• Forbes.com, the staff provides insight on the events leading up to the recent downturn in the companies stock. It is key to point out that Netflix is a volatile stock, and is currently not outside of their average stock price. Find out more on the Forbes article with the link. Forbes Web Link
• The key reason in discussing the current state of the companies stock is to provide insight on how they will advertise this year.
User Activity Chart
House of Cards | Netflix Trailers
Trailer 1 | Official Trailer
Trailer 2 | Life the Veil
Trailer 3 | Pain
Netflix News
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