8 strategies Netflix can use to gain back market share

Netflix, the world's leading streaming platform, recently announced that it lost 1 million subscribers in the last quarter. This marks the first time in over a decade that the company has experienced a drop in subscribers, and the news has sent shockwaves through the industry.

There are a few possible reasons for this unexpected loss. One possibility is increased competition from other streaming platforms, such as Disney+ and HBO Max, which have gained popularity in recent months. Another factor could be the economic downturn caused by the COVID-19 pandemic, which has led some people to cut back on non-essential expenses like streaming subscriptions.

Despite the loss of 1 million subscribers, Netflix is still performing well overall. The company reported strong financial results for the quarter, with revenue increasing by 24% compared to the same period last year.

But to out scale its competition, they’re going to have to take more strategic steps. In this article i pinpoint just 8 strategies the streaming giant can do to dominate the market once again.

#1. Optimize the sign-up process

Netflix can optimize it’s sign up. process by actually showing users the best content they offer. Netflix’s has a few tentpole products like Stranger Things and The Crown that power its acquisition but these products are not featured on their website background image.

They can also optimize the copy to focus on how easy it is to get started with Netflix, like “create your account in 60 seconds” and focus on value like “All your favourite movies, tv shows and more in one place”. This shows people that the signup process is going to be easy, and by focusing on the value they are avoiding the biggest objection that people have which is that there are a lot of options but yet can’t find something that’s relevant to them.

#2. Content discoverability

Netflix can make it easier for users to find and access the content they are looking for. They could use an AI tool like ChatGPT to improve its recommendations.

First, ChatGPT could be used to ask users about their preferences and interests in order to generate personalized recommendations. For example, ChatGPT could ask users about their favorite genres, actors, or directors, and use this information to suggest movies or TV shows that align with their interests.

Second, ChatGPT could be used to help users navigate the vast amount of content available on Netflix. By asking users “what they are in the mood for”, ChatGPT could help them filter through the many options and find something that meets their needs. This could be especially useful for users who are not sure what they want to watch and are looking for guidance.

By improving the accuracy of its recommendation, Netflix can better optimize its north star metric which is “watch time”.

#3. Ramp up tentpole production

One of the key reasons people join Netflix is to watch their exclusive series namely Stranger Things, Narcos, Black Mirror, Money Heist (also known as La Casa de Papel), The Crown, etc.

The more effort the spend on producing shows like this and can also benefit from increasing the frequency of their releases so people are hooked to the platform and don’t want to leave.

#4. Increase local content

Netflix should continue to expand its presence in countries around the world, which can help drive up subscriptions and revenue in various key markets. To do this they need to create shows and documentaries around mega celebrities and influencers in those markets.

They did this with Kanye and Ronaldo, but there’s a lot they can do with other celebrities like Kylie Jenner, Lionel Messi, Kim Kardashian, Huda Beauty, Elon Musk. etc.Imagine this, Huda Beauty has 50 million followers on Instagram, creating a show with her would give them free exposure to 50 million users.

#5. Pricing and product

Netflix currently offers pricing plans based on the quality of the streaming. But if you read the small print it also provides multi-device options with the standard and premium plan.

This is unnecessarily confusing for users. All users should ideally get the option to switch between video quality depending on their accessibility to wifi, and they should instead just focus on the multi-device options.

If someone is on a family plan, they are less likely to leave knowing that their wife, kids parents are also using their Netflix subscription. This way Netflix can retain more users.

#6. Partnerships

Netflix can forge partnerships with other companies to drive up subscriptions.For example, they can partner with telecoms or device manufacturers to offer bundled services and and pre-install their app on the devices.

Telco customers can get a discounted or free subscription to the streaming service when they sign up for a phone or internet plan. This can be an attractive offer for customers who are looking for value and are interested in the streaming service's content.

Streaming services could also partner with device manufacturers to pre-install their app on devices such as smartphones, tablets, and smart TVs. This can make it easier for customers to access the streaming service's content and can increase the visibility of the streaming service's brand.

In addition to this, they could also partner with hotels and airlines. They could partner with hotels to offer their content to guests during their stay. This could be done through a dedicated app or channel on the hotel's in-room entertainment system. The streaming service could offer a selection of popular movies, TV shows, and other content for guests to watch during their stay.

Similar to hotel partnerships, Netflix could also partner with airlines to offer their content to passengers during flights. This could be done through the in-flight entertainment system or through a dedicated app on passengers' personal devices. The streaming service could offer a selection of movies, TV shows, and other content for passengers to watch during their flight.

Partnerships like this can expose their content to a new audience and potentially convert them into paying subscribers. Additionally, these partnerships can provide an opportunity for streaming services to promote their content and brand to a captive audience.

#7. Growth loops

There are a few potential ways that Netflix could implement growth loops by allowing users to share content and recommendations with their friends. Here are some ideas:

1. Adding friends: Allowing users to add their friends on Netflix could create a social aspect to the platform, similar to what Spotify does with its "Follow" feature. This could encourage people to share recommendations with their friends and see what their friends are watching, potentially leading to new show or movie discoveries.

2. Sharing specific scenes or clips: By allowing users to share specific scenes or clips from shows or movies on Netflix that they find most entertaining, the platform could tap into the trend of creating and sharing short-form content on social media. This could be especially appealing to younger users who are active on platforms like TikTok and Instagram.

3. Offering a 7-day trial: If a user shares a recommendation or clip with a friend who doesn't already have a Netflix account, the platform could offer the friend a 7-day trial to encourage them to sign up. This could be an effective way to acquire new users and potentially convert them into paying subscribers.

4. Gifting subscriptions: Allowing users to gift a 30 day pass to their friends could be another way for Netflix to tap into social sharing and encourage growth. This could be especially appealing for users who want to share their love of a particular show or movie with their friends. This could potentially lead to new users signing up for the platform.

It's important to note that implementing these types of features could also have some challenges and risks, but with careful planning and moderation, it's possible that these types of growth loops could help Netflix to attract and retain more users.

#8. Pause membership

One potential strategy that Netflix could consider implementing is a "pause membership" option, which would allow users to temporarily pause their subscription for a certain period of time. This could have several benefits for the company and its users.

Offering a pause membership option could help Netflix retain users who might otherwise cancel their subscription due to a temporary change in their circumstances, such as a loss of income or a change in their viewing habits. By allowing these users to pause their membership instead of canceling it, Netflix could keep them as customers and potentially reactivate their subscription later on.

Second, a pause membership option could also help Netflix appeal to users who are interested in the platform but may not be ready to commit to a full subscription. For example, a user who is only interested in watching a specific show or movie that is only available on Netflix might be more likely to sign up for a temporary membership rather than committing to a full subscription.

Finally, a pause membership option could help Netflix reduce churn, or the rate at which users cancel their subscriptions. By allowing users to pause their membership rather than canceling it, the company could potentially reduce the number of users who decide to leave the platform permanently.

Overall, implementing a pause membership option could be a valuable strategy for Netflix, as it could help the company retain users, appeal to new users, and reduce churn.

If you liked these ideas, make sure to share this article on your Linkedin or Twitter so others can learn too.