Netflix had a stellar year in 2013.

In just Q3 of their income statements they reported well over a $1 billion in revenue and added over 630,000 new subscribers to the service.

The extreme success of Netflix has been a long time coming and they show no indication of stopping now. Even when faced with telecoms attempting to throttle bandwidth, competitive streaming services provided by Hulu and Amazon, and the local dominance by Redbox, Netflix is a shining example of business done right.

The following is an attempt to pair what Netflix does right – and how you can leverage their approach to business to improve your own.

The Netflix Formula

A March 2011 blog post on Gigaom took a look into the secrets of Netflix's success. Though the piece is now dated it provides us a glimpse at the culture and drive of the company. The items detailed are the business principles Netflix chose, which have made them a winner.

These items include:

• Timing when entering the market
• Relationships with content providers
• Pricing
• Creativity

In recent years, as a long-term subscriber to Netflix, I have seen a remarkable change to their programming and availability.

From my perspective, these are the items that have made them a success:

• Original Programming – Netflix has placed a great deal of effort in providing original programming for their platform. This includes exclusive stand up comedy shows and Emmy award winning features like the hit show House of Cards and revived fan favorite Arrested Development. These programs have converted users to the service because they provide a great entertainment bargain.


• Family Sharing – It's no secret that most Netflix users have setup their accounts on multiple devices and share with their family and friends. Instead of placing a block on the number of active connections Netflix has embraced this usage by introducing a family sharing feature that gives users the ability to create profiles for each member of the family.


• Availability – In a nod to the previous statement, Netflix's availability across multiple platforms makes it easily accessible for all types of users. Video game consoles, streaming devices, and Smart TVs often integrate Netflix into their software availability. Smart phones have access to the Netflix app (along with tablets and other mobile ready devices). The fact that Netflix is anywhere and everywhere makes it an extremely easy-to-use service without having to continually configure and update hardware and software.

In 2014 we will continue to see these three main elements be the backbone of Netflix's success. They are already underway releasing new content for their users, testing new pricing plans, and embracing technology by making a push to provide ultra HD video quality.

Let's Learn from Netflix

To truly understand the fuss and buzz about Netflix I would recommend you become a subscriber. Netflix offers a free month's trial, which will give you enough time to explore the platform, engage with their customer service, and create a case study that can then be applied to your business.

Here are a few items I would recommend when applying the Netflix formula to your business:

• Customer Service – Get in touch with Netflix's customer service and take notes on how they handle various situations by throwing them curveballs such as a bad connection, you can't access your account, or general inquiries. Confer with your notes to see if there are elements of your customer service that could replicate that which is provided by Netflix.


• Content Delivery – Notice the process Netflix uses to release new content for their subscribers. There is a slow build of buzz related to the new releases on the platform, which is often covered by multiple websites and blogs. You may find a similar scenario available to your business in ways such as providing exclusive, unique products for die-hard customers, networking with site owners to build buzz (and links), and/or working with other providers to increase the amount of offers to your customer base.


• Explore Technological Options – Like how Netflix tests and tries new technology for their services you should do the same for your business. This may include different formats for delivering product/service information (video, slideshows, etc), membership or subscription options for repeat customers, loyalty programs, or an entry into apps for gadgets.

These three items will give your business a plethora of opportunities to explore. Discover what you feel Netflix does right and begin applying it to your work. Treat it like a case study, take notes, apply what works, drop what doesn't, and strive for excellence.

Author Bio
Devin is an Search Marketing expert and professional in backlink outreach/acquisition. Devin began his career in SEO while in college and now helps SEO agencies and in-house marketing teams scale their outreach and publishing campaigns by leveraging his knowledge of the SEO industry. You can find Devin on twitter @dmak_11, LinkedIn, or Google+.