Netflix Attributes Revenue Increase to Effective Marketing
US streaming service Netflix have credited their rising revenues to "well-honed" marketing messages. They plan to continue investing in marketing to further boost brand awareness.
The company reported a revenue increase of 17% year on year to $1.1bn (£662.9bn), while their net income has risen to $32m (£19.2m). Their subscriber numbers now total 44 million, with expectations for a further 4 million to be added in the current quarter.
Netflix has increased its marketing spend over the past year to $136.8m (£82.4m). Internationally (including the UK), that spend rose by 10% to $59.8m (£36m).
Netflix CEO, Reed Hastings, has stated that the company previously over focused on making its service simple, instead of adding features that improve the user experience, such as simultaneous streaming and user profiles.
He explained they are now changing their strategy: "The simplest iPhone would have no apps but it wouldn't be a better iPhone. A great service is a product of functionality and ease of use. We have shifted away from simplicity as the end goal and are more focused on getting the best functionality."
Hastings added: "The brand over the next couple of years really stands for a commercial-free experience. We put our consumers in control of the experience so that can watch when they want, play when they want and pause when they want. We don't cram ads down people's throats."
Overall, Netflix attributes its success to "marketing effectiveness", service improvements and sales of internet-connected devices. They are also investing more in original content, increasing their spend by $700m (£421.8m) last year to $7.3bn (£4.4bn).