Samenvatting

This report offers an advice about the expansion of Netflix to Germany. Netflix is a subscription-based video-ondemand service that is running in 41 countries already and originated in the US. It offers video content, such as TVshows, movies, and documentaries for a monthly fee to subscribers who can stream the company´s complete media library to a great variety of home-entertainment and mobile devices. The report provides insight into macro-factors that influence the company´s entry such as social, cultural, economic and legal aspect and describes the company´s capabilities and resources, how it functions and how its business model works, based on growth and customer acquisition. The SWOT analysis and the 4Ps, which are analyzed as part of this report, lead to the conclusion that content is a double-edged sword for the company. On the one side, its content is considered to be its strength due to its scope and high diversity, and a huge opportunity if the newly produced original shows are as popular as the current ones. On the other side, content is a weakness for Netflix because currently it has only international titles and no local or localized content for Germany. Usually, Germans are used to localized content with German voice-overs or at least German subtitles. This is a new situation for Netflix which has only entered markets in Europe in which English is widely accepted by media consumers. The PESTEL analysis presents among others demographic and technical factors that Netflix has to focus on due to the nature of its product: broadband internet connections and digital affinity of its target audience are key elements to look out for when looking for prospective markets. Porter´s Five Forces Framework proves that the rivalry among all competitors is very strong and that the market can be considered as very dense and moderately difficult to enter. Furthermore, competitors are analyzed and evaluated in order to develop a positioning and a marketing communication approach. By applying Porter´s frameworks of Generic strategies an approach will be proposed that is going to focus on differentiation rather cost leadership (Netflix´s home strategy in the US), convincing prospective consumers with original shows and convenience instead of having the lowest price. Furthermore, tools of the promotional mix are being discussed and selected based on the target audience preferences and Netflix goals. Finally, the advice chapter offers information on how Netflix can differentiate itself from its competitors based on the original content that is being produced and how it should approach its target audience properly with a mix of advertising, publicity, direct marketing while utilizing social media and word-of mouth publicity. Additionally, the author proposes to examine the possibilities of partnering up with music streaming services to offer a unified streaming experience, which would benefit on Netflix´s already well-developed streaming-technologies and customer platforms