As much as it is hard to select a certain brand and stay a loyal customer, it sure would be hard for service providers as well to create a strong customer base in a world full of tough competition and an influx of new and advanced agencies with each rising sun. Among many others, the subscription business has to face the worst of all. They never know when the subscribership will fall down or those whom they consider as their loyal subscribers would decide to leave just like that. Hence, understanding the pattern and reducing subscribers’ churn is so important for any company’s success. And it seems like Netflix understands the power of customer selection well and has adopted an appreciable subscription strategy. 

The customer selection strategy adopted by Netflix would help it in a long run

The year 2022 seemed a hard one for Netflix as it saw a huge reduction in its subscribership. However, the hardship is probably for a short period and Netflix’s stalk will only increase with such a smart business strategy.

Netflix is a company that has successfully reinvented itself numerous times in significant ways. They have now discovered a means to pinpoint their ideal clients, eliminating the freeloaders who weren’t a good fit in the first place. Those individuals had what we could consider an extended free trial, and Netflix made the decision that enough was enough.

The streaming service is now cutting down the log by providing its service only to those who are genuinely willing to pay and enjoy the benefits. They’ve discovered a way to prioritize the customers willing to pay for the kind of premium material they’ve been investing a lot of money in producing, rather than focusing on the number of people who watched their content overall. This has also made a new tactic possible, in which they will experiment with a cheaper subscription that the advertisements will support. In short, Netflix, according to many business tycoons has finally opted for a quality-over-quantity kind of strategy that will benefit the streaming giant in a long run.

Do you think that Netflix, through its brand new experiments, will be a successful OTT platform? Do let us know in the comment section below.