Branding: Netflix

1 Sep

Thursday, September 1, 2011

I’ve been thinking about Netflix’s recent marketing implications. You probably know that several weeks ago the online TV and movie giant announced a restructuring of their prices. Instead of paying one price for streaming and DVD options, beginning September 1 — today — customers will pay separate prices for each service. Outraged, thousands of angry customers canceled their subscriptions. Can I blame them? I’m a Netflix consumer, but it hasn’t stopped me yet.

But let me put this into a branding perspective: First of all, branding is the promise we make to customers that we vow never to break. It is creating and maintaining the essence of the brand. Consumers will stay with a solid brand even when newer or sexier brands are introduced. With that understanding, wasn’t Netflix’s original branding ‘one low price’ for two services? Though their service hasn’t changed and product is still the same, I can’t help but see this as a reneging of their most fundamental platform.

However, and it’s a big one… I took a look at their portfolio over the past year and even considering that they lost thousands of subscriptions, their stock has continued to rise. All I have to say about that is that their public relations team must be doing a killer job. After all, something’s keeping me around isn’t it?

 

 

 

 

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2 Responses to “Branding: Netflix”

  1. Shannon Bretz September 1, 2011 at 11:40 am #

    I have been a Netfilx user for atleast 2 years now. When I got an email notification that they were changing their pricing format, which was probably 3 months ago, first thought that ran through my mind…ABOUT TIME. Of course I am all about saving money but I was always shocked that at the prices they were offering compared to the services. Still a streaming customer and still a snail mail customer!

    • delaneymarketing September 1, 2011 at 2:39 pm #

      Shannon: I agree strictly from a consumer standpoint. It’s a great deal either way you look at it. I just think that there should have been more of a rebranding effort involved with it…from a branding standpoint. Something to enhance the offering a little. Thanks for sharing!

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