This digital strategy document outlines Netflix's goals of increasing subscriptions by promoting its new exclusive series "Hemlock Grove". The strategy targets both teenagers and their parents. It will engage teenagers on social media to generate buzz about the show. This will influence parents as teenagers nag them to subscribe. The key message is that Netflix provides the best choice in visual entertainment through its expanding catalogue and viewing options on any device. Tactics include social media contests and an AMA with the cast. Success will be measured by growth in social followers, positive reviews, awareness and preference over competitors.

1. Creating a Digital Strategy
for
Final project submission for Digital Strategy skillshare
program by Julian Cole
Presented By Michael Browne
@rontherocket
March 2013

2. The Business
Problem

3. Core Consumer Question
“How do we boost Netflix subscription
numbers by utilizing the release of its
new and exclusive series Hemlock Grove”

4. Before we begin our strategic analysis. Lets start by taking a brief
look at the History of this innovative organization Netflix and
how, within a short time, it has come from relative obscurity
to become a leading player in the battle for our viewing entertainment

5. Established in 1997, the company
is headquartered in Los Gatos,
California. Netflix started life as a
subscription based DVD
distributor in 1999 (which it still
operates today).

6. This new business model changed industry norms in home
entertainment and Netflix were in direct competition with long
established bricks and mortar retailers with proven pedigree
And considerable financial resources

7. Undaunted by intense competition Netflix began to stamp its
mark on the industry and by 2009 it offered a catalogue of over
100,000 titles on DVD and had surpassed the 10 million
subscribers mark. In February 25, 2007, Netflix announced its
billionth DVD delivery

8. Although highly profitable Netflix realized that the business landscape was
changing. DVD’s were and aging technology and the new war ultimately
was to be waged online. Because of its success in the DVD industry Netflix
was able to harness the power of its brand name and expertise helping it
quickly diversify into the online entertainment market.

9. Where it would Soon face Heavyweight
Competition

10. FROM THE
LIKES OF

12. But NETFLIX
had THE
JUMP
ON
EVERYONE
ELSE in
Online
Streaming

13. Giving IT
FIRST MOVER
ADVANTAGE
Over
competitors

14. BUT
Remember

15. IT’S NOT HOW
GOOD YOU ARE
IT’S HOW GREAT
YOU WANT TO BE

16. Strategic Goals

17. Strategic Goals
To increase the overall number of subscribers to Netflix
To sell Netflix as an innovative streaming platform by utilizing digital
channels and social media in a way that will differentiate it from its
competitors.
To promote “Hemlock Grove” as part of its expanding exclusive content
offerings that provides new viewing options to viewers
To highlight Netflix as the number one streaming service, unrivalled in
terms of its viewing catalogue, viewing options and customer service.
To use digital and social media channels to promote Hemlock Grove and
to engage its teenage audience forming a two-way dialogue with them.

18. The Target Market

19. We All
Know
That

20. IT S MOM AND DAD
THAT MAKE THE
DECISIONS

21. IT S MOM AND DAD
THAT MAKE THE
DECISIONS
AND CONTROL ALL HOUSEHOLD FINANCES

22. IT S MOM AND DAD
THAT MAKE THE
DECISIONS
AND CONTROL ALL HOUSEHOLD FINANCES

23. IT S MOM AND DAD
THAT MAKE THE
DECISIONS
AND CONTROL ALL HOUSEHOLD FINANCES
HOWEVER…

24. HELL induces NO FURY SUCH
AS THE NAGGING
TEENAGER

26. NOT KNOWN TO BE THE GREATEST
LISTENERS IN THE WORLD

27. NOT KNOWN TO BE THE GREATEST
LISTENERS IN THE WORLD
TEENAGERS USUALLY
GET WHAT THEY WANT

28. NOT KNOWN TO BE THE GREATEST
LISTENERS IN THE WORLD
TEENAGERS USUALLY
GET WHAT THEY WANT
OR ELSE….

29. WOE BETIDE YOU

30. Our campaign will therefore have two main targets
Teenagers viewers of “Hemlock Grove” and more
importantly their parents

31. If Netflix is to be successful in capturing the teen
audience it needs to appeal to them by engaging
with them, on their terms, in their environment

32. So
what s the best
Way of Doing This?

34. Netflix needs to generate conversation amongst
teens getting them to talk about what they
watched, how they watched it and what they
thought about it. Positive sentiment will get them
to spread the good word about the show and the
service to friends and peers as well as
influencers who are not yet subscribed.

35. If Netflix can capture the hearts and minds of the
teen audience getting them to act as
ambassadors for the brand they are much more
likely to be successful in converting undecided
parents to subscribe to the service

36. By winning favor with teenagers through
engagement Netflix will already be half way to
getting parents to subscribe to the service. The
final push to win over parents will be showing
them that the service has the broadest viewing
catalogue of family entertainment. That it is
committed to investing in the best new and
exclusive series and that it has built its
reputation by delivering outstanding customer
service.

37.
Remember The Golden Rule!

38. Never underestimate the persuasive power
of the annoying teenager Hell bent on
Getting what they want!

39. Strategic Insights

40. Strategic
Insights
People have are increasingly demanding that
1
their viewing media be more flexible and
adaptable to their busy lifestyle
2
Customers ultimately want to have control over
their viewing options and watch at a time that
suits them.
3
“House of Cards” has displayed positive
feedback from consumers in terms of their
response to the innovative release of the new
series

41. Strategic
Insights
It’s release has helped to differentiate Netflix in two ways
4
A) as a streaming service committed to investing large
resources in the production of new and exclusive
programming. B) As a company that is dedicated to
innovation by giving its customers more viewing options
for its exclusive content.
5
With it’s block release of new programming Netflix has
broken a sixty-year old television broadcasting tradition of
releasing series incrementally. This is a high-risk strategy
for the company but proves they are willing to take
calculated risks to win the hearts and minds of existing
and new customers.

42. The Strategy

43. We want to communicate the idea that Netflix is
a dynamic organization dedicated to providing its
customers with premium and exclusive
entertainment in multiple formats across multiple
devices. We want our customers to know that
Netflix are committed to constantly finding new
ways of exceeding their expectations.

44. If the strategic campaign
were to communicate one
Message it would be…

45. Single Minded Proposition
Netflix provides the best in visual entertainment
by providing our customers with the highest
levels of choice and service. Choice for us
represents not simply title selection but also
format and platform choice, as well as the
power to choose what to watch, when to watch
and how to watch, anyway you want.

46. And If the campaign were
to communicate one
Word it would be…

47. Single
Minded
Proposi:on
Netflix provides the best in visual entertainment
by providing our customers with the highest
levels of choice and service. Choice for us
represents not simply title selection but also
format and platform choice, as well as the
power to choose what to watch and how to
watch, anyway you want.

48. Therefore
the Big Idea
is…

50. We re All About
Choice

51. Reasons To Believe
Netflix have been the leaders in visual
entertainment innovation initially with its DVD
postal ordering service and since 2007 with
instant online streaming service. Its reputation
has been built on providing it customers with
wider choice and better options.

52. Reasons To Believe
Now with the release of House of Cards and
Hemlock Grove, Netflix it is once again redefining
the rules, breaking traditional convention and
proving its commitment to providing its
customers with even more control in their
viewing options.

53. Reasons To Believe
By block releasing new exclusive programming
Netflix is once again putting power back in
consumer hands. They choose how they watch.
They can go the traditional skinny diet of one
episode at a time or dive right in and watch the
entire series in one sitting.

54. Comms Framework
Current
consumer
behavior
Desired
Response
Undecided
Parents
of
teenagers
Subscrip:on
paying
Parents
• Buying
Facebook
Youtube
News
sites
Digital
Buzz
Google
Search
Owned
Social
Tumblr
TwiKer
Mashable
Technology
Forums
NeClix
Site
Awareness
Considera:on
Buying
Crea:ve
Messaging:
NeClix
are
all
Crea:ve
Messaging:
NeClix
invest
Crea:ve
Messaging:
NeClix
is
compe::vely
about
providing
choice
for
customers
heavily
In
new
programming
like
priced
and
has
a
customer
service
that
is
Hemlock
Grove
second
to
none
Reasons
to
Believe:
Brand
name
Reputa:on
Reasons
to
Believe:
Word
of
mouth/ Reasons
to
believe:
Industry
leader,
word
of
recall
from
success
of
House
of
Cards
mouth,
Internet
search.
Published
data
Media
Media
Media
Rich
Media
Earned
Media
NeClix
Website
Banner
Ads
Social
Adver:sing
Owned
Social
Social
Media
Ads
Banner
Adver:sing
Search
Home
Page
Takeovers
Microsite
Social
Ads

55. Campaign Tactics

56. Facebook Tactics
Time Out Competition
The idea is that Netflix FB fan (whose family are subscribers)
watch the series of Hemlock Grove and answer a number of
questions based on various parts of the show. A maximum
of five members in any group allowed four of which are
not Netflix subscribers. Once started teams have a maximum
of 24 hrs to complete the quiz. Prizes awarded to winner
Prizes given to Netflix FB fans who enlist 5 people from
their Facebook friends list to subscribe to Netflix

57. Twitter Tactics
The starring cast of the Hemlock Grove series, including
producer Eli Roth, participate in a fan Q&A session via twitter.
The cast also shows their involvement and commitment to fans
by favouriting their preferred fan tweets under the Hemlock
Grove hash tag. Prizes awarded to fan that writes
Tweet of the Day

58. So
What
Will
Success
Look
Like

59. Campaign KPI s

60. Retention
Increase
FB
Likes
from
3.7
to
5
million
Increase
TwiKer
connec:ons
from
284,000
to
half
a
million
Aim
for
70%
5
star
product
reviews
in
Technology
websites
and
blogs
Aim
for
80%
posi:ve
sen:ment
about
brand
from
web
ac:vity
Purchase
Increase
Subscrip:on
numbers
by
10
million
in
twelve
months
Preference
20%
increase
in
purchase
preference
40%
recall
for
Hemlock
amongst
teen
target
Consideration
80
million
visitors
to
website
and
FB
page
Awareness
150
million
page
impressions
to
target
audience

61. Samples

62. exclusive content-Anyway you like it
We re All About Choice
Welcome
Back
Michael!
Recommended
for
you!
Recommended
New
Releases
Genres
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Top
10
With Social
Share
The
Love
Media Links
Join
Us!

63. A Netflix exclusive, Anyway You Like it
We’re
All
About
Choice

64. The Best
choice of Titles.
Anyway
You like it
We’re
All
About
Choice

65. The
Road
Ahead

66. Moving Forward
In order to build customer subscriptions Netflix must
It must continue its one-month free trail as part of its promotional
strategy
Netflix must be leaders in customer service. High customer
satisfaction leads to greater customer retention and a reputation that
sells itself. Netflix should capitalize on this long term.
It must place a high priority on social media activities as a vehicle
towards achieving high customer satisfaction levels and retention.

67. Moving Forward
In order to build customer subscriptions Netflix must
It must continue to invest heavily in top quality content either through
commissioning exclusive production or buying in from outside production
sources.
It must never cease to be innovative and constantly strive to bring its
customers the highest levels of choice and viewing options at a competitive
price.

68. Thanks
Michael Browne
michaeltbrowne@gmail.com
@rontherocket