When Netflix shifted its focus from renting DVDs by mail to producing original content, it didn't immediately become a household name. In fact, it took seven years for the company to reach 50 million subscribers. The turning point came with the release of 'House of Cards', which changed the way people perceived the brand. What's surprising is that 'House of Cards' wasn't a game-changer in terms of ratings, but it did change the conversation around binging and original content. The common mistake professionals make is creating a product or service that they believe is revolutionary, but fail to adjust their marketing strategy accordingly. This can be summed up as 'building a product for the wrong audience'. The implication for professionals is that sometimes the best way to disrupt an industry is to adjust your perception of your product within that industry. As Reed Hastings, Netflix's CEO, said, 'It's not about how many titles you have, it's about how many hours of good content you have.
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Building & Strategy
The 50% Product Positioning Shift That Made Netflix Unstoppable
75% of new Netflix users joined because one show changed their perception of the service – not the other way around.
Key insights
By shifting the focus to customer perception, you can identify areas for improvement and create a more compelling value proposition.
A customer advisory board can provide valuable insights into the needs and pain points of your target audience.
By understanding how competitors are perceived, you can differentiate your product and stand out in a crowded market.
Go deeper
Netflix released its first original series, 'House of Cards', in 2013, following a 2010 study that showed 67% of viewers preferred streaming content over traditional TV. By 2016, Netflix had reached 94 million subscribers. Today, the company has over 230 million subscribers and is widely regarded as a leader in the streaming industry.
The concept of perception in product adoption is not unique to Netflix. In 1957, psychologist Carl Hovland published a study on the power of persuasion, which showed that people are more likely to adopt a product if it is perceived as desirable by a group.