Names: Meriam.S Fahmy Ferdos Karimian Arwa Ayse Ahmed

Netflix.com. There’s a Movie for you.

Netflix.com Background

Online movie rental service.

Between 2000 to 2004, it grew steadily from 292 thousand to 2.6 million subscribers.

In late 2004, other players entered the category. (Amazon.com and Blockbuster.com)

Netflix’s main competitor is Blockbuster (offline and online).

Objectives

Increase brand awareness by 8%.

Increase subscribers by 50%.

Increase subscriptions those not linked to multichannel direct marketing but to Netflix offline advertising by 17%.

Decrease churn rates by at least 0.75 points

Decrease subscriber acquisition cost to less than $35 per subscriber.

Target Audience

Originally was:› Young, techno-savvy males and are into

internet and in love of film.

However, research showed that it’s not only for film buffs but also time-starved 35-45 year- old suburban Moms and Dads.

Creative Strategy

Elements of renting a movie without the hassles of due dates, late fees and standing in a line.

TV and Radio Campaign in which a movie genre came to life.

Media Mix

In 2005, media mix was expanded to grow the subscription base.

National cable is the main driving force for trials.

Spot TV provides additional reach.

Network Radio was added to reach an extended audience.

Online advertising was kept throughout the campaign.

Results

Campaign was successful.

Trial and Membership subscriptions were at record levels.

In spring 2005, brand awareness was 40%

By September, awareness increased to 51.6%

Results continued.

By Fall 2005, total subscribers increased to 61% (from 2.2 million to 3.6 million).

Offline advertising improved by 23% over the same period on 2004.

Churn rate decreased from 5.6% to 4.3%.

Subscriber acquisition costs dropped from $38 per new subscriber to $35 per new subscriber.