$50BN was wiped off the value of @netflix $NFLX this week.
To understand why I'd like to take a different perspective.
I will break down the #brand & #business failings that led to this loss.
In the simple & small thread below 🧵👇
#marketing #brand #Netflix
To understand why I'd like to take a different perspective.
I will break down the #brand & #business failings that led to this loss.
In the simple & small thread below 🧵👇
#marketing #brand #Netflix
1/ PRODUCT-MARKET FIT pt1
We live in an increasingly impatient world.
We live in a world where we expect everything immediately. We can buy whatever we want, with one click. We can order a taxi, instantly. And stream endless content, whenever we want.
We live in an increasingly impatient world.
We live in a world where we expect everything immediately. We can buy whatever we want, with one click. We can order a taxi, instantly. And stream endless content, whenever we want.
1/ PRODUCT-MARKET FIT pt2
In this increasingly impatient world, $NFLX had a great product-market fit.
-epic amounts of great content.
-content that dropped all at once, no need to wait, just binge it all straightaway.
-no distractions, 100% ad-free.
-very cheap monthly fee.
In this increasingly impatient world, $NFLX had a great product-market fit.
-epic amounts of great content.
-content that dropped all at once, no need to wait, just binge it all straightaway.
-no distractions, 100% ad-free.
-very cheap monthly fee.
2/ SPENDING BIG
However to provide this great product $NFLX had to spend BIG.
-Last year alone it spent $9BN on content, to serve its 200M subs.
-Compare that to @ParamountPics who spent $8BN serving 100s of its channels.
However to provide this great product $NFLX had to spend BIG.
-Last year alone it spent $9BN on content, to serve its 200M subs.
-Compare that to @ParamountPics who spent $8BN serving 100s of its channels.
3/ SCALE AT ALL COSTS (pt1)
The issue $NFLX faced is the same faced by @Uber, @lyft & @blueapron.
To give us a great product, at a cheap $, they have to scale fast + get tons of customers
But in the process, they racked up a ton of debt with a very little brand investment.
The issue $NFLX faced is the same faced by @Uber, @lyft & @blueapron.
To give us a great product, at a cheap $, they have to scale fast + get tons of customers
But in the process, they racked up a ton of debt with a very little brand investment.
4/ SCALE AT ALL COSTS (pt2)
Whilst $NFLX & @Uber originally give us cheap subscriptions & taxi rides. They increasingly had to raise prices to fund the expensive cycle of bringing in new customers.
Whilst $NFLX & @Uber originally give us cheap subscriptions & taxi rides. They increasingly had to raise prices to fund the expensive cycle of bringing in new customers.
5/ SCALE AT ALL COSTS (pt3)
This focus on scaling saw $NFLX increase its basic subscription price by 20%.
And an @Uber fairs have massively risen in price today. For example, an airport ride (during surge times) can cost up to $100!🤬🤬
This focus on scaling saw $NFLX increase its basic subscription price by 20%.
And an @Uber fairs have massively risen in price today. For example, an airport ride (during surge times) can cost up to $100!🤬🤬
6/ NO BRAND
The problem both companies faced, is they have failed to build a distinctive brand. When you think of $NTFLX you just think of ok content. When you think of @Uber you think of cheap fares.
This lack of brand building gave them no defense when new competition came.
The problem both companies faced, is they have failed to build a distinctive brand. When you think of $NTFLX you just think of ok content. When you think of @Uber you think of cheap fares.
This lack of brand building gave them no defense when new competition came.
7/ NO BRAND - Pt2
Brands enable companies to become more distinctive, ownable & desirable. It is the reason #Nike can charge a premium for a fairly cheap to make trainer. It's why #Apple is able to charge way more for the #iphone.
Brands enable companies to become more distinctive, ownable & desirable. It is the reason #Nike can charge a premium for a fairly cheap to make trainer. It's why #Apple is able to charge way more for the #iphone.
8/ NO BRAND - Pt3
If $NFLX had built a better brand it would have helped in two ways:
-a distinctive brand would have helped defend better against rivals such as Prime Video & Disney+
-It would have made the now necessary price hikes easier for customers to swallow.
If $NFLX had built a better brand it would have helped in two ways:
-a distinctive brand would have helped defend better against rivals such as Prime Video & Disney+
-It would have made the now necessary price hikes easier for customers to swallow.
9/ CONCLUSION pt1
There are many factors that led to $NFLX demise.
While a lack of consistent quality content will have played a part.
Building a distinctive brand would have enabled it to raise prices & better defend itself.
There are many factors that led to $NFLX demise.
While a lack of consistent quality content will have played a part.
Building a distinctive brand would have enabled it to raise prices & better defend itself.
10/ CONCLUSION p2
If your like this thread check out my newsletter where i write about #brands, #marketing & #cryptocurrecy
It's 100% free.
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If your like this thread check out my newsletter where i write about #brands, #marketing & #cryptocurrecy
It's 100% free.
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11/ THANKS
If you liked this tweet please go back to the first one in the thread & Retweet it. Also, tag someone below who might be interested.
Thanks 🙏
If you liked this tweet please go back to the first one in the thread & Retweet it. Also, tag someone below who might be interested.
Thanks 🙏
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