Netflix Business Case
Netflix Business Case
Netflix Business Case
Streaming platform Netflix leveraged a local cultural nuance to capitalise on changing entertainment
habits during the COVID-19 lockdown in India.
India had a cluttered streaming space, but with comparatively low subscription numbers due to
cable TV and the cinema being more affordable options; however, the lockdown meant more
prospects were seeking out in-home content.
Netflix latched on to the local insight that mood is a key driver for Indians making choices on
everything from food to entertainment.
The brand created the Netflix Matchmaker, a tool that would take the user's current mood and
match it to titles from Netflix's content library and it tapped into Twitter, Swiggy and Spotify to
reach people when they were making decisions about what to watch.
The activity built relevance and consideration for Netflix, leading to growth for the platform.
Campaign details
Brand: Netflix
Brand owner: Netflix
Entrant company: Wavemaker
Idea creation: Wavemaker Mumbai
Market: India
Sector: TV channels, services, programmes
Media channels: Websites & microsites, Radio & audio, Mobile & apps, Online display, Email marketing
Budget: Up to 500k
Executive summary
In India, the adoption of OTT services picked up in 2020 as consumers spent more time at home in the wake of
the COVID-19 lockdown. Subscriptions grew 55-60% for the top OTT platforms on the back of increased
interest.
In a cluttered streaming space in India, where more than OTT platforms jostled for share of mind and share of
wallet, content discoverability became very important.
Thus, the task on hand for us was to ensure Netflix became everyone’s first-choice entertainment destination by
positioning Netflix as the OTT that had content for every mood and occasion.
In India, the oft-repeated phrase ‘mood nahi hai’ (I am not in the mood) is usually used to dictate choices ranging
from the kind of cuisine you want to eat to the kind of entertainment you want to watch.
We latched on to this cultural and behavioural nuance to create a content matchmaker that would take your
current mood into consideration and match it to titles from Netflix’s vast content library that consumers could
enjoy in that moment.
We tapped into Twitter, Swiggy and Spotify to reach people when they were making decisions about what to
watch next and recommend their next binge-worthy content.
The Indian OTT (Over the Top) market was cluttered with more than 40 platforms jostling for consumers’
attention and share of wallet. However, subscriber growth continued to remain sluggish with only a handful of
OTT platforms managing to make a dent in the country.
The price points at which multiple OTT platforms operated were expensive compared to the monthly cable/DTH
charges that consumers were paying. Hence entertainment on TV and the occasional visit to the cinema to
watch the latest blockbusters continued to remain popular with consumers.
But the beginning of 2020 brought about a massive change in the entertainment consumption habits of
consumers. With India going into a strict lockdown due to the COVID-19 pandemic and no new content being
produced for TV and with cinemas shutting down indefinitely, consumers started moving towards OTT platforms.
Research showed that between January 2020 and 2021, there was 13% growth in OTT video consumption in
India. (Source 1)
Growth in subscriptions
With a heavy tailwind in the category, more than 62% of consumers stated that they had added one or more
subscription services for video streaming since the start of the pandemic in March 2020.
Industry reports showed that subscriptions grew 55-60% for the top OTT platforms on the back of increased
interest. (Source 2)
Premium category: Consisting of the tech giants, Netflix and Amazon. Here the entire content was behind
the paywall.
Freemium category: This category mainly comprised the broadcasters who showcase catch-up content.
Here part of the content is free of cost, whereas the rest is behind the paywall.
AVOD category: Comprising YouTube and MX Player, where the entire content is free of cost.
Niche category: Focuses on select markets/regional content
Netflix being a premium, paid subscription service with no free trials had to compete hard with these Freemium,
AVOD and SVOD players for share of mind and share of wallet.
Netflix already had a vast content library and different entry points such as the new Mobile plan at Rs.199 that
was unique to India.
Thus, the task on hand for us was to ensure Netflix became everyone’s first-choice entertainment destination by
positioning Netflix as the OTT that had content for every mood and occasion.
OTT platforms were quick to latch on to this opportunity and launched high-decibel marketing campaigns to
drive subscriptions. (Source4)
Netflix could have entered this high SOV battle, but we needed a differentiated approach. Netflix already
enjoyed high awareness, but consideration was low compared to other OTTs due to the perception that Netflix
had ‘edgy, gritty content’ that was ‘not for me’. Therefore, pursuing just reach was not the solution. (Source5)
To drive consideration for Netflix we had to change the perception to ‘Netflix has content for every mood and
occasion.’
It was a challenge as other OTT players had free content sampling while Netflix had its content hidden behind a
paywall with no free trials. Consumers had to sign up for a subscription with a credit card to sample the content.
This made it difficult to attract value-conscious Indian consumers who liked to try before buying. (Source6)
Research conducted by us showed that content range and value for money are key motivators for the purchase
of an OTT subscription. Content range keeps consumers beyond the initial trial period and helps build loyalty.
Mobile accessibility and experience were critical too. Netflix already had a variety of content, a great
recommendation engine, and a mobile plan at Rs. 199 that was unique to India.
Therefore, to drive consideration, we had to put Netflix content in front of non-members outside of the Netflix
app.
In India, mood is usually used to dictate choices ranging from the kind of cuisine you want to eat to the
entertainment you want to watch. While consumers were dependent on word-of-mouth recommendations and
trailers for new shows, it was often their mood that helped them make a decision.
The #CognitiveTriangle demonstrates how our thoughts, feelings, and behaviours are intimately connected.
Behaviours trigger thoughts, thoughts trigger feelings and feelings impact our decision-making. (Source7)
What if we could tap into moods to drive consideration for Netflix? We used this framework to power our
strategy.
Real-life emotions influence your reel-life choices. Building these reel-life experiences and placing them in the
right environment could help us drive consideration amongst our target consumers.
But who were these consumers? People with a propensity to pay for content, people who were willing to shift
from AVOD to SVOD and light/medium TV viewers were consumers whom we could target to drive the next wave
of growth for Netflix.
We used our proprietary DMP to decode this audience behaviour and find out where they were spending their
time. Social networking, entertainment, cricket, and news were their primary lifestyle choices. We looked at
various consumer need-states and mapped them to touchpoints, where they could get a release and reveal how
they felt.
We shortlisted three key behaviours – social media, music, and food ordering – that had also seen a spike
during the lockdown.
1. Content discovery: 84% of all streaming title conversations on Twitter are about ‘discovery’, with users
sharing and seeking recommendations for content.
2. Binge primetime: Food ordering spikes on weekends between 10pm and 1am which is also when binge-
watching peaks. Content bingeing and food bingeing go hand in hand. Platforms like Swiggy in India have
seen a spike in orders during ‘binge prime time.’
3. Audio streaming: Audio streaming went up by 40% during the lockdown as people started using platforms
such as Spotify while working from home.
Therefore, the big idea. Marrying emotions with the right environment, we created a Content Matchmaker that
would take your current mood into consideration and match it to titles from Netflix’s vast content library that
consumers could enjoy in that moment.
Implementation
We wanted to drive consideration for Netflix India by positioning Netflix as the OTT that had content for every
mood and occasion.
To build on this positioning in the minds of consumers we partnered Twitter, Spotify and Swiggy which allowed
us to tap into three key behaviours that Indian consumers had developed:
1. Content discovery: 84% of all streaming title conversations on Twitter are about ‘discovery’, with users
sharing and seeking recommendations. We had to make Netflix a part of this conversation in real time and at
scale.
To do this, we created a content recommendation engine that gave people on Twitter mood-based
recommendations for their Friday night binge. To get a recommendation, all consumers had to do was tweet an
emoji (which depicted their mood) to @NetflixIndia with #NetflixMatchmaker. At the heart of the engine, lay a
repository of emojis that were mapped to content from the Netflix library. Based on the emoji used, the
recommendation engine sent an auto-response with content recommendations. We mapped more than 862
emojis to titles in the Netflix library, getting the whole Twitterverse talking each weekend.
2. Binge watching: Streaming services such as Netflix have helped drive a sharp spike in sales for online food
delivery in India led by orders from ‘Screenagers’ binge-watching shows on these platforms. Studies have
shown spikes in ordering on weekends between 10pm and 1am, which is also when binge-watching peaks. This
changing consumer behaviour presented us with a great opportunity to serve the right show with the food the
consumer was planning to order on Swiggy.
We took over Swiggy on weekends – both on and off app. A premium placement on Swiggy’s homepage drove
consumers to a virtual Netflix multiplex within the restaurant and grocery section. Consumers who landed on this
section were shown a curated list of restaurants paired with the most relevant titles from the Netflix library. This
section was updated weekly to showcase the latest Netflix titles based on occasions, genre-based themes,
specific timeslots and characters making it relevant and topical for consumers. Multiple channels were used to
create buzz around the partnership via emailers, push notifications and banter on social media platforms
between Netflix and Swiggy.
3. Audio streaming: The music you listen to at different times of the day or week can be an accurate indicator
of your mood. During the lockdown in 2020, music emerged as the preferred stressbuster for millions of Indians
who were working from home, playing a therapeutic role during testing times. Audio streaming went up by 40%
as people started streaming music while exercising, doing housework, and working from home.
We partnered Spotify to build a recommendation engine that would match consumers’ music listening habits to
shows they were most likely to enjoy.
We created a co-branded microsite where consumers were asked to connect their profile with Spotify so their
listening history could be scanned. Once connected, consumers were served their streaming programmes for
the week. Consumers could see why they were recommended the selection, delve further into their
recommendations, and be served a matching playlist. Via Spotify’s recommendation engine, consumers could
explore Netflix’s library before subscribing and discover new content within the genre or linked to the genre.
Through these three platforms, we could reach people where they were making decisions about what to watch
next and recommend their next binge-worthy content.
Performance
By deploying a long-term pull-promotion strategy (in contrast to the competitors’ fierce push strategy) and being
discoverable to Netflix non-members, we not only built relevance but also generated interest and demand for the
platform, leading to growth for Netflix.
By deploying a pull-promotion strategy (in contrast to the competitors’ fierce push strategy) and being
discoverable to Netflix non-members, we not only built relevance, but also drove consideration for the platform.
(Source 8)
On Twitter, more than 85k unique recommendations were sent out to the users.
On Swiggy, more than 500k users were exposed to the new Netflix content each week.
On Spotify, more than 200k people participated in the Matchmaker experience, spending close to two minutes
on the microsite.
The sentiment for the campaign was overwhelmingly positive with 99% positive + neutral mentions on social
platforms. (Source 9)
In a year where business growth was a priority, driving consideration for Netflix by creating a recommendation
engine via Netflix Matchmaker became the secret sauce which gave us a leg up on the competition.
While the audience asked for recommendations to battle their mood swings, Netflix brought out the best of its
library – with its hero titles creating the added buzz. In a tough battle of OTT players, Netflix used the
recommendation engine to its prime advantage week after week to display the breadth of its premium titles along
with blockbuster local hero titles, all on the back of audience mood.
Lessons learned
Crafting a consumer-centric solution based on a strong consumer insight is key to bridging the gap between the
brand and their prospective consumers. This activity is one such example wherein by being discoverable to the
potential target audience, we not only built relevance but also generated interest and demand for the platform,
making a segue for the newer recruits and leading to the growth of the brand Netflix amidst the cluttered
category.
Creative assets
© Copyright Ascential Events (Europe) Limited 2022
Ascential Events (Europe) Limited
Americas: 229 West 43rd Street, 7th Floor, New York, NY 10036, United States - Tel: +1 212 201 2800
APAC: 5 Shenton Way, UIC Building #10-01, Singapore 068808 - Tel: +65 3157 6200
EMEA: 33 Kingsway, London, WC2B 6UF, United Kingdom - Tel: +44 (0)20 7467 8100
www.warc.com
All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing
company's office location. It may not be reproduced, posted on intranets, extranets or the internet, e-mailed, archived or shared electronically
either within the purchaser's organisation or externally without express written permission from Warc.