A while back, I predicted their days of dominance are coming to an end. Shortly after, their stock fell by 40-some percent.
Well, another Netflix article recently came across my desk. And Netflix’s troubles have only thickened.
They’re losing some of their most popular shows.
Their new content isn’t attracting new subscribers.
And they might go out the same way Blockbuster did — in an ironic turn of events.
Despite being the #1 streaming platform, Netflix has a lot of fatal problems lurking through the business.
* They spent billions of dollars on original content — but it ain’t attracting new customers
* They don’t use the tried-and-true strategy of weekly show releases, which extends the “zeitgeist effect” shows like Stranger Things and Squid Games give you.
* They have such an abundance of content on their platform that finding something watchable is damn near impossible.
* They cancel all their hit shows after 2 or 3 seasons because only new shows attract new subscribers.
Let’s talk about this last point for a second:
This is the fatal blunder Netflix is making. And it’s something that could ransack your business too.
Netflix is on a never-ending journey of growth. One distorted way this manifests is by canceling their hit shows after a couple seasons. Even though their current subscribers gobble them up like candy, these hit shows don’t attract new subscribers.
And new subscribers are worth their weight in gold to Netflix’s growth monster.
Which brings me to the point:
Instead of pulling out all stops to attract new subscribers, Netflix should try everything they can to retain their subscribers.
Well, current customers are more likely to pay Netflix more (by renewing their monthly contract, upgrading their subscription, or even buying merch if Netflix makes it). But it also enhances the experience of every subscriber — past, present, and future.
One reason I don’t watch as much Netflix as I did a few years ago is because they have too much content.
And they have too much content because it’s the only way they know how to land new subscribers.
You can see the downward spiral this creates — especially when there’s a new streaming service popping out of the woodwork every other week.
And I see many business owners, agencies, and freelancers making the same blunder:
Caring more about attracting new clients instead of retaining the ones they have.
Look, I get it.
New clients (or customers) are sexier. They give you more bragging rights.
But it’s much harder making someone who has never paid you to whip out their credit card and pay you than it is to make someone who has paid you to pay you more.
Retention is the name of the game in business.
Netflix would be wise to heed this advice.
As would you.
Need help both attracting new clients while serving your current customers better?
Email is a magical marketing channel for achieving both.
But a warning:
My client schedule’s filling up quicker than my gas tank when Trump was president.
So don’t dilly-dally around and keep putting this off.