Netflix: subscription marketing machine
A nice article by Motley
Fool talks about how Netflix lowered prices in the past year to stave
off competition from Walmart and Blockbuster. They will reach 4 million
subs by the end of this year and project more than 5.5 million by the
end of next year. Next year they will generate almost $1 billion in
Netflix has one of the best online marketing machines out there. They
are everywhere. Entrepreneurs and students of internet marketing would
do well to study all the ways Netflix markets their services.
The one month free trial offered on their home page is great.
They promote that offer everywhere.
- Natural Search. They have almost 600,000 pages indexed by Google. Blockbuster has only 55,000.
- Search Rankings. They rank #1 on Google for “dvd rental” and which gets more than 1,000,000 searches per month in the U.S. They are also #1 on Yahoo for “dvd rental”. They are #2 on Google for “movie rentals” just behind Blockbuster.
- Affiliate Marketing. Last year they switched from BeFree to LinkShare, a high end affiliate marketing network. They pay quite well and have many affiliates.
- Pay Per Click. They are outbidding Blockbuster (as of right now)
on “movie rentals” and many other terms on both Google and Yahoo. Googspy shows them bidding on many keywords (although the Googspy list only shows a tiny fraction of what people are really bidding on.)
- Social Networking. Last year they introduced Netflix Friends. Haven’t heard how well it is working.
- Online advertising (banners and rich media). Netflix had the 4th largest budget for online advertising in both August and July.
- Email list size. I haven’t found this yet, but I’m guessing that
millions have signed up for their free trial offer and that their list
is probably much, much larger than their subscriber base.