#11: A Case Study: Netflix 2020

Applying my strategy frameworks to Netflix today.

Black Mirror’s “Bandersnatch” is one of Netflix’s new interactive stories.
  1. Further illustrate the strategy models.

The GLEe Model

Earlier in this product strategy series, I outlined how Netflix hoped to “Get Big,” “Lead,” and “Expand” during its startup phase. Below I have added the company’s current focus, as well as a speculative next step, which may have substantial traction in five to ten years:

Should Kimmy “Make-Out” or “Plan Wedding?” You decide.

The DHM Model

There are lots of high-level product hypotheses in test today at Netflix, but I’ve outlined four strategies that I think are most important. Each has the potential to delight customers, in hard to copy, margin-enhancing ways:

  • Original content. Netflix’s exclusive content delights customers. And the company continues to take advantage of its hard to copy economy of scale, investing nearly twice as much in content as its nearest rival.
  • A better watching experience. Netflix invests in tools that make a member’s viewing experience even better. Examples: Ultra HD video/sound, custom playback speed, and lots of hard to copy technology that “just works” irrespective of a member’s device and bandwidth.
  • Interactive storytelling. Netflix is building the tools both for studios to create interactive stories and members to “choose their adventure.” Note that Netflix isn’t competing against other streaming services. It’s competing for a share of consumers’ screen time and hopes to win that “moment of truth” when a consumer decides between Netflix, Fortnite, and Instagram.

The GEM Model

After twenty years, Netflix’s membership continues to grow at a fast rate. Here’s how the company might force-rank growth, engagement, and monetization today:

The SMT Lockup

Below, I outline four product strategies on the left, along with the proxy metrics and tactics that correspond to each hypothesis:

The Rolling 4-Quarter Product Roadmap

Here’s my speculative roadmap, beginning Q3, or July of 2020:

The key strategies are on the left, and you can see when projects against each strategy will launch. Again, this is a fictional exercise to demonstrate the concept of a roadmap.

Former VP/CPO at Netflix/Chegg. Now speaker, teacher, & workshop host. Learn more here: www.gibsonbiddle.com or here: https://www.linkedin.com/in/gibsonbiddle/