Marketing mix of Netflix (7Ps of Netflix)

By: | Tags:

Marketing mix of Netflix (7Ps of Netflix)

This is a detailed analysis of the marketing mix of Netflix. It explores the 7Ps (Product, Price, Place, Promotion, Process, People, and Physical Evidence) of Netflix and explains the company’s business & marketing strategies. Netflix, Inc. is the world’s leading provider of the Internet entertainment, headquartered in California, the USA. It was founded by Reed Hastings and Marc Randolph in 1997.

Products of Netflix

Netflix offers its customers an extensive list of programmes e.g. features films, TV shows, documentaries, Netflix originals and many more. It has three major categories of contents i.e. licensed non-first-window content, licensed original first-window content, and owned original first-window content (Netflix, 2021). There are three plans available for anyone wishing to take Netflix membership i.e. basic plan, standard plan, and premium plan.

Netflix adds new TV programmes and movies every week to meet the growing demands of the subscribers. Many people perhaps do not know that Netflix was a simple DVD-by-mail rental service before it transformed itself as the most powerful online content provider in the world. DVD rental service is still available and is expected to continue as long as it makes some profits for Netflix.

Price and pricing strategies of Netflix

Netflix subscribers can watch TV shows, movies, and other services without having to download them as long as they have an Internet connection. And this comes up with a price! Customers pay a monthly subscription and plans start from £5.99 a month in the UK with no extra costs or contracts. Netflix has two other plans i.e. £9.99 per month and £13.99 a month and offers subscribers one month free trial as well. In January 2019, it increased the cost of its standard plan in the USA from $10.99 to $12.99 a month (BBC, 2019).

Some analysts argue that Netflix has a value-based pricing strategy. Others argue that it pursues a competitor pricing strategy. However, it is worth mentioning that Netflix is not the cheapest one out there. For instance, in the USA, Amazon Prime Video costs $8.99 a month, and Hulu costs $5.99 a month. As mentioned above, the cost of Netflix standard plan in the USA has gone up from $10.99 to $12.99 a month.

Place/distribution channels of Netflix  

Place is a very important issue to discuss in the Marketing mix of Netflix. Netflix is available virtually anywhere and anytime as it is an online streaming business. It is available in over 190 countries and only a few countries and territories such as Crimea, North Korea, and Syria where the service is not available due to U.S. government restrictions on American companies (Netflix, 2021). People can watch it on their smartphones, laptops, tablets, smart TVs, streaming devices, and game consoles.

Promotional strategies of Netflix

Netflix has adopted a number of promotional strategies to attract and retain its subscribers. For instance, it spent over $1.8 billion on advertising in 2018 and $1.09 billion in 2017. Likewise, it marketing spending amounted to $2.65 billion in 2019 (Stoll, 2021). This makes Netflix one of the biggest advertising buyers in the entertainment industry in the world.

It is not surprising that Netflix uses almost all media channels to take its message to its target audience. Celebrity endorsement, advertising on billboards and print media, word of mouth, and extensive use of social networking sites are some of the ways Netflix promotes itself. Netflix’s first month free trial policy is also a promotional activity to persuade potential customers to subscribe and use its services.

People of Netflix

Netflix has grown in both size and scope over the years to become the major player in the entertainment industry in the world. It employs approximately 8,600 full-time workers (Stoll, 2021). It focuses on hiring talented people with diverse backgrounds, cultures, and perspectives. In 2020, it became the top company in the world where people wanted to work according to the tech jobs marketplace Hired (Liu, 2020).  As long as the membership is concerned, Netflix has around 200 million subscribers globally. A huge number of its subscribers are from the United States.

Process in Netflix

Next issue to discuss in the Marketing mix of Netflix is process. Process refers to a set of activities that need to be carried out in order to achieve a particular result. Different business functions may have different processes. For instance, signing up with Netflix is a straight forward process. Netflix is free for 30 days for new members. If new members enjoy the service and would like to continue, they need to do nothing as their membership will automatically continue. However, membership can be cancelled online anytime.

Physical Evidence of Netflix

Physical evidence is the last element to address in the Marketing mix of Netflix. As Netflix is a streaming service, its website and app are its primary physical evidence. Its offices and data centres are also part of the physical evidence. No doubt that Netflix has a very user friendly website and a mobile app. It also has offices and data centres in many countries e.g. the USA, the Netherlands, Brazil, India, Japan, and South Korea.

We hope the article ‘Marketing mix of Netflix’ has been useful. You may also like reading SWOT analysis of Netflix and Marketing Mix of Facebook. Other relevant articles for you are:

Marketing mix of Apple

Marketing mix of Amazon

SWOT analysis of Google

SWOT analysis of Yahoo

Advantages and disadvantages of doing business online

Marketing mix of Starbucks

Advantages and disadvantages of a private limited company

PESTEL analysis of France

SWOT analysis of YouTube

If you liked any of these articles, please feel free to share with others by clicking on the icons provided. Also do not forget to enter your email address at the bottom of the site to ‘Join us’ free for our newly published articles and newsletters.

Last update: 26 June 2021


BBC (2019) Netflix raises prices for US customers, available at  (accessed 20 June 2019)

Fiegerman, S. (2019) Netflix adds 9 million paying subscribers, but stock falls, available at: (accessed 24 June 2019)

Liu, J. (2020) These are the 10 companies tech employees want to work for most in 2020, available at: (accessed 24 January 2021)

Netflix (2021) Netflix Corporate Information, available at: (accessed 26 January 2021)

Stoll, J.  (2021) Number of Netflix employees from 2015 to 2018, by type, available at: (accessed 26 January 2021)

Author: Joe David

Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.