There is currently a growing market for new ways for consumers to rent or view movies. Redbox allows customers to go to any of their kiosks which are strategically placed at grocery stores, shopping centers, convenience stores, and the like for consumers rent a movie for $1 per night. The movies can then be returned to any kiosk at any time. Blockbuster has changed its business model from having stores with movies to rent to an enterprise business model that operates by shipping movies to customers’ homes that have purchased subscriptions, while still operating a few stores. Some companies that have not made the changes necessary in the changing market have not been successful, such as Hollywood Video, which is no longer in business. One of the most popular and well-known movie rental options in the market currently is Netflix.
Netflix operates by offering different levels of subscription to customers for a flat-rate monthly fee. The movies are sent via mail from the customer's queue of movies to be rented. They also have an on-demand option that supplies users with unlimited access to their database of streaming movies via computer or Wii system. This ability to access movies on-demand or receiving movies via mail is something that has appealed to many people and led to Netflix's success. This aspect of choice is something that has set them apart from the competitors and Netflix has built on this in recent months. Their commitment to keeping up with technological advancement has made them successful.
Netflix has been very effective in using mobile marketing techniques to keep and gain customers. Netflix’s newest advancement is its new mobile applications which were launched in the late summer/early fall of 2010. Netflix’s apps are available for iPhones, iPads, and androids, which are some of the most popular platforms right now. The mobile application allows customers that are already Netflix subscribers to watch movies on-demand from the Netflix database. This marketing strategy works because it sets Netflix further apart from its competitor giving customers lots of ways to view movies and get more for their subscription fee.
The target audience for this marketing strategy is more than likely males and females around the ages of 25 – 35. These individuals are out of college and have busy lives, but do not yet have large families of their own. They are young adults and enjoy the social and technological capabilities of smartphones and mobile devices. This group spends money on applications and probably have a high awareness of Netflix’s brand already. Targeting these individuals will more than likely help Netflix expand its amount of subscribers because this group will appreciate the variety of ways to watch Netflix on-demand movies, and the fact that Netflix offers it on smart devices will appeal to them. This target audience wants variety and Netflix offers them variety in both viewing options and movie selection. For customers that already subscribe to Netflix, this will add value to their subscription and help with customer retention.
This campaign to expand the amount of viewing options through mobile marketing will definitely be something that will attract customers. I don’t have a smartphone, but one of the reasons that I, and a lot of people I know, have subscribed to Netflix is because Netflix offers the most diverse range of ways to view movies of any of its competitors. I’m not always near a TV with a DVD player when I want to watch a movie or maybe I have a movie and don’t want to wait for another one to be sent to watch something. The ability to stream movie instantly to my laptop, computer, or Wii is one aspect that I really love. Also Netflix has a large amount of movies in its database for both mail delivery and on-demand viewing. If I had a smart phone, I would definitely download the app and watch movies on my smartphone/mobile device. I think that Netflix is affordable enough that people who don’t have a subscription may consider subscribing because of the smart phone app. It’s unique. Also, I think it will get the attention of people have been considering or trying to choose between Netflix and one of its competitors. The diversity of both movies and viewing options sets it apart. This mobile app really adds value to the Netflix subscription and is a great way to get the attention of customer. Netflix is doing a great job of being on the edge of technology and being the first of their competitors to implement new technological advancements.
