Digital Marketing Case Study: Netflix and its Challenges

This case study examines Netflix's digital marketing strategies, focusing on the challenges it faces and the proposed solutions. The study identifies key issues such as limited local content, language barriers, high pricing, and payment infrastructure problems. To address these, the study suggests strategies like forming partnerships with movie studios for revenue-sharing and expanding content offerings to attract more customers and reduce costs. Furthermore, it emphasizes the importance of effective communication with customers to justify pricing and maintain customer relationships. The analysis also highlights the need for Netflix to continually improve its services and expand its product range to stay competitive in the market. The case study also includes references from academic papers and other sources.

Running Head: Case- Study: Digital Marketing
case-study: digital marketing
Netflix

Case- Study: Digital Marketing 1
Introduction
In this paper, it is going to develop a case study on Netflix about the problem faced by Netflix and the strategies to overcome the
problems.
Netflix is an entertainment company of America which was founded by Marc Randolph and Reed Hasting in 1997 in California.
Netflix has a specialization in streaming media and online videos.
Problems faced by Netflix
Local content is limited: it is the major problem faced by Netflix as their competitors who are regional in the developed market,
especially the country like Germany and France get inspired by the success of Netflix in the US and offering their own market.
And these competitors have more amount local content.
Barriers in language: mostly the content of the Netflix is in the English language so it can restrict in some countries as only 5%
out of the total country can speak the English language.
Prices are Expensive: Netflix has developed the pricing strategy that it will not drop down their price in developing the market.
This will lead to making the Netflix more expensive as compared to other competitors in the market.
The process of payment and broadband infrastructure are underdeveloped: even in the US, Netflix has been facing plagued
issues in payment as when the switchover chipping credit card there transaction get cancelled. The biggest problem faced by the
US is the logistical pieces of Netflix system. (Bennett, J. et.al.2007)
Strategies to overcome the problem
In order to succeed, Netflix has to develop better control over its cost related issues. The current cost system includes fluctuation
in the price of license and high price of technical infrastructure for maintaining its streaming cost. To control this cost Netflix has
to do a partnership with other networkers and movie studios and develops the agreement of revenue-sharing due to which these
studios will offer their content in large scale. Apart from this Netflix should develop itself as a feasible alternative to gain the
costumers of television. Even the Netflix will lose their money with this partnership, but it will help Netflix to gain the market
share.
For maintaining the relationship with customers, Netflix must do better communicating job with them. For example, Netflix
should communicate the customers for the reason behind the high price is that it values their customers and give more to them
what they want through online streaming in order to survive in the market and to compete with their competitors, Netflix has to
provide superior quality goods to customers by maintaining profits also. For this Netflix has to expand their product offering this
will lead to strike the deals with the studios and gain more customers so this will decrease the cost associated with the partnership
when it Netflix becomes famous and continues to succeed. (Koren, Y.2009).
Note: Netflix is entertaining company but facing some problem related to the competition, high price and losing customer base,
so several strategies has developed to overcome this problem like by doing partnership with movie studio and improving job
communication and by offering large products.

Case- Study: Digital Marketing 2
References
Bennett, J., & Lanning, S. (2007, August). The Netflix prize. In Proceedings of KDD Cup and workshop (Vol. 2007, p
. 35).
Koren, Y. (2009). The bell or solution to the Netflix grand prize. Netflix prize documentation, 81, 1-10.