How Netflix brought down a giant and became a market leader by remaining true to their brand purpose
Why you’ve got to listen to this episode:
In 2004 Blockbuster was a market leader with 60,000 staff and a revenue of US$6 Billion while Netflix was a small start-up that mostly went unnoticed or dismissed by Blockbuster. In fact, Blockbuster had the opportunity to purchase Netflix but they thought so little of its potential that they didn’t deem it worth doing so. I bet they regret that now.
Seven years later, Blockbuster filed for bankruptcy and Netflix had over 74 million monthly subscribers and a revenue of US$7 Billion.
We’ve seen this happen before, a small start-up comes in and disrupts the market while the dominant giant who had all the advantages can’t see where the market is going or chooses not to act on it and ends up becoming irrelevant.
In this episode I’m talking to Barry Enderwick, who helped shape the Netflix brand in its early days. We discuss how Netflix has been able to continuously change and adapt, staying on top of its game and how you can do so as well.
Who can benefit from listening in:
Defining a brand purpose is important, but you have to make sure your purpose is not focused solely on current market conditions or even the products or services that make you the company you are today.
With rapid changes in technology and market demands the organizations of tomorrow, may look nothing like the ones of today. This takes vision, discipline and courage but it may just be essential for your long-term success.
Key takeaways from this episode:
- Your brand purpose must be something your audience aspires, not today or tomorrow but for the long run.
- Do AB testing do achieve incremental lifts and consumer research to gut check big swings.
- Don’t be a solution looking for a problem. Your organization must solve an existing problem.
- It’s not just about the data, the key is to know how to interpret the data.
- A brand and its culture are never born fully formed. You have to assess, adjust and improve constantly.
Links to resources mentioned in this episode
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