Warc Blog

Original content boosts Netflix

24 April 2013
NEW YORK: Netflix, the online streaming site, is using original content to redefine and extend its connection with consumers, and thus increase subscriptions while reducing churn.

"We've gone to great lengths to raise the content and the quality of the content on the site," its Reed Hastings, chief executive officer, told analysts in an earnings call.

As part of this process, Netflix is becoming the exclusive broadcaster of an increasing number of shows, as was the case with the recent series, House of Cards.

"We are feeling very excited about what happened with House of Cards and with Hemlock, what's coming with Arrested Development and Orange Is the New Black," said Hastings.

"I think over this year, with continuing rollout of these original shows, you are going to see a very nice redefinition and broadening of what Netflix is to our members."

Such a strategy is vital to attracting new customers and winning back consumers who had previously tried the service, but then cancelled subscriptions.

"You can't move a 'rejoin' very much with paid marketing, because they have a pretty firm idea of what Netflix is," observed Hastings. "Most of what we do is improving our service, so that it works better for them."

The company's paid advertising, he added, was aimed at new members who had a "more hazy idea of what Netflix is".

Looking ahead, Hastings expected to increase the number of original series Netflix offered, but said there was no fixed long-term objective.

"We'll see as we go in terms of what we learn ... so there is no set number we are trying to target, and it will depend upon the results that we see."

He also had an eye on the international market, as shown by the fact the premier party for its Hemlock series was held in Mexico City. "That's an indication that we really focus on the global attractiveness of the content," he said.


Data sourced from Seeking Alpha; additional content by Warc staff

 
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