In one year, Netflix has doubled the amount of Canadian subscribers it has. Up from 13%, approximately 25% of Canadians (~8.7 million) are currently subscribed to Netflix. This is a great example of positioning and how they have successfully established their position in the consumer’s mind as the first and leading firm for streaming movies and TV series online. Although Netflix alternatives do exist, such as Target Ticket, most people are unaware of these alternatives because of how tightly Netflix has secured its spot in their market. Competitors were too late in their entry into this market, by the time of their entry Netflix had already become a household name. This situation is also a strong case of brand power combined with strategy innovation. Before they deployed their online streaming service, they had positioned a name for themselves in a very positive light by previously renting out DVDs through mail orders and charging no late fees. They cleverly adjusted their strategy to modernize the way their market conducted its business through delivering their content seamlessly and painlessly via the internet. Of course marketing played a major role in Netflix’s success, but I also believe their service helped sell itself (e.g. word of mouth, good reviews, recommendations, etc.) because what they have to offer is exceptional for the price that they charge.
