The debut of House of Cards back in 2013 seems like an age ago now, and for Netflix, it was. The service was then in its relative infancy, or perhaps adolescence, emerging from their more traditional role, provider of hard copy movies via post (how quaint that sounds now!). The entity in 2017 is truly global (in more than 130 countries with over 80m subscribers [April 2016]) and has commissioned myriad original content, including the popular Stranger Things.
That new content comes with a $6bn price tag though, and low margins.
Fortunately, there is much more to be done though. Here are 3 quick things that Netflix can do quickly to dramatically improve the Customer Experience.
- Zeitgeist has been wondering for months why Netflix had not been supporting the ability for offline downloading and viewing. Yes, there are piracy concerns such a new approach would bring, but piracy is pretty pervasive anyway. Presumably there are contractual arrangements to be made / re-negotiated with content partners to allow viewing in a different mode. As it is, before we could post, Netflix sagely announced at the end of November that offline viewing would be a thing, though only available on Apple and Android mobile and tablet devices for now. Reassuringly, their public statement for doing so was due to customer demand, not anything regarding retention efforts or value chain management (i.e. shareholder-facing spiel). Titles not currently available for download include, unsurprisingly, content from Disney, which is trying to build its own walled garden with Disney Life.
- Transparency forms a key part of the next two points. Netflix needs to be much more upfront about what content is going to be available when. This is in a studio’s interest too. A filmgoer might want to see a film again after seeing it at the cinema. But why risk buying it as a single copy when Netflix might have it in their library soon thereafter? Why not keep the Netflix subscriber base more informed about films that are being considered, or better yet, allow people to have a say. If I search for a title not in the Netflix library, then let me submit it to be bought. Once a certain number of vote are received, they could, like HM Government, establish a threshold that would then commit them to considering it.
- Lastly, in a more niche way, Zeitgeist, in travelling in 2015 in France, Canada and the Middle East shone a light on the remarkably different stable of content each Netflix library holds. From an internal, local market strategy point of view, each region has different tastes and different priorities. But from a subscriber point of view, the presence of – for example – West Wing in North American libraries but not in European ones seems arbitrary at best. The problem exists even within markets. In one country, you can stream Toy Story 2 and Toy Story 3 but only order the first film through the mail. It borders on Kafka-esque, and Netflix needs to do a better job of explaining why this is the case.
This is an important time for Netflix. Series like The Crown have helped further solidify its reputation as the go-to innovative player in the market, the new HBO. It must tread carefully though. Nomura reported last year that the service’s price hikes could have created a churn of 500,000 customers in the US alone. Netflix must ensure it communicates the value of what people are paying for. Otherwise, the stellar package of content, paid for like you pay a utility bill may risk becoming similarly commoditised.