Jacob Warwick – Aug 28th, 2015

Although Netflix is largely responsible for the popularity of the online video streaming industry today, over the past five years, they have needed to continually adapt and become more innovative with their marketing tactics to maintain their position as a disruptive force.

With the rising cost of licensing new content and heavy competition from the likes of HBO, Amazon, and Hulu, Netflix has adapted their business model to focus more on creating branded content of their own. In part due to their owned media successes of House of Cards and Orange Is the New Black, Netflix held the top spot with a 36% share of the online streaming industry.

Through their market leadership, they are breaking out ahead and setting the new standards for branded content and video advertising that are both compelling and well executed to fit customers’ needs.

Closed-Loop Feedback Systems Inform Programming Decisions

Traditional media outlets are chasing engagement by tailoring their content using closed-loop feedback systems. It’s what’s given rise to the listicle and the tl;dr. But it’s also what contributed to Netflix smashing success with its owned programming.

Netflix put consumer data to the test when it made one of the boldest decisions that we’ve seen of late—investing $100 million into the owned media bet that is House of Cards, without even testing a pilot. They were able to make the bet because of their keenly constructed closed-loop feedback system taking in and continuously monitoring insights from customer data.

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