Netflix tuned into customers but still needs to expand – Brand Index
THE STREAMING service Netflix recently announced that it had passed the 60m subscriber mark worldwide.
Roughly 40m of those are in the US, which helps to explain why the company is planning an ambitious expansion plan, particularly in Europe, Australia and Japan.
Shares in Netflix have also risen by around 40 per cent since the start of the year, and Netflix also said revenue increased by 23 per cent from the same period a year earlier to $1.57bn (£1.06bn).
Programmes such as House of Cards have characterised Netflix’s appeal; popular, exclusive, original content – at the users’ fingertips.
But what does YouGov BrandIndex data tell us about Netflix’s success, and where can it go from here?
YouGov’s Buzz Metric measures whether a respondent has heard something positive or negative about a brand in the last two weeks.
When we compare Netflix’s buzz score in the US and UK, we see a similar story of success and of a steady increase in ratings. In the US, the score has risen from 26 at the start of the year, to 29 now. In the UK, the score has risen from 10 in mid-January to 16 in mid-April.
The signs are good therefore, for growth on both sides of the pond.
Clearly, Netflix wants word of its service to not just be heard through its advertising, but also in an organic manner too. YouGov’s Recommend metric underscores this notion.
Both in the US and UK, an increasing number of respondents are saying they would recommend the streaming service to their friends or family.
In the US, the score has risen steadily from around 35 at the turn of the year to 42 now. For comparison, here in the UK the rating shows a shift from 17 to 22.
It is clear that Netflix’s strategy is working and subscribers are very receptive to the content they provide.
As internet TV gains ever more traction, Netflix will be delighted with the position it holds.
However, with rivals such as HBO and Hulu looking for ways to compete, Netflix’s expansion plan will be crucial in maintaining its position as industry leader.
Stephan Shakespeare is chief executive of YouGov