Netflix Stock Price Drops

Netflix Inc. NFLX +1.90% shares fell 35.1% on Wednesday, recording their worst day since 2004 after the streaming giant reported that it lost subscribers in the first quarter.

As a PM for Netflix, what would you investigate first and why?

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Talk to customers about their pain points and innovate a solution that addresses them.

Content and price seem to be the main ones.

The majority of users are “sharing” passwords to avoid paying for a service they don’t use all month long.

Why do I need to pay Netflix all year? Why do I need to pay any single streaming service all year?

Partner and develop a rotation of content - $30 a month an you can rotate through all the partnerships content but you only can switch partner each month.

Everyone wins in this situation and you could have data showing how many users also have single point streaming services they have.


Over the years competition has grown, There are more options now. Customers would not pay for something that they can get free. They need to diversify their portfolio and identify a product that customers will be willing to pay for.

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Thats a sick idea! Would help so much with having 7 different streaming services, its a little what Sky are trying to do in the UK with Sky Q but that is more expensive as well so mabye a standalone rotational service is where its at!

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As a PM I would investigate the segmentation of the past and current customers.

There has to be differences in customer behavior based on the region.

For example, one of the reasons why my best friend left Netflix, was due to the fact that even though Netflix is world wide, and has local languages available (I am from Bosnia), other streaming services like HBO Max promote partnerships with Telecoms, in order to reach out to customers and promote in local language. Majority of Netflix users believe the content is mainly in English and based on the statistics, 40% of internet users in my country, don’t know English that well.
HBO Max does not even promote itself in English.
Based on the segmentation, I would divide the market, since majority of Europe does not have Disney+, Apple TV, or similar streaming services, they have to have local partnerships. My strategy would be to address personalized region approach, use partnerships and promotions like “Netflix on us!” with Internet service providers and bundle the cost of it with other providers.

Get close to the customer but from the Internet Provider perspective and analyze personal region approach.

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See that there’s a few approaches here involving segmenting by cohorts. Remember that Netflix only collects/stores minimal information about its subs. There’s no information regarding gender, age, interests etc.
What might make sense is to look at new pricing ties and models. Given that Netflix has hit an apparent ceiling of subs with the current pricing, we might ask ‘what’s the opportunity size of a free, ad-based or lower price tier version of Netflix?’ Additionally, what would a higher pricer tier of Netflix look like? What would subs pay $19.99/month for, other than increased video quality?
Our goal is to increase subs. Netflix revenue model is anchored on recurring revenue through monthly/yearly subscriptions. A non-goal would be to decrease subs or introduce flexible plans that result in a net loss of subs.

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