The Rise of Business Development in Netflix: How It Became the Key to Their Success
Introduction
Netflix started as a DVD-by-mail service back in 1997 when Blockbuster was a giant in the industry. But how exactly did they become the leading streaming service with exceptional original content? The answer is Business Development.
What is Business Development, and how did Netflix leverage it?
Netflix began investing heavily into business development when the competition in the DVD-home rental market was too high. The key was to move from a traditional DVD-by-mail service to an on-demand streaming service. Netflix identified this opportunity at precisely the right time when the world was moving to the internet. As the early pioneers in streaming services, they had to figure out a way to make this a reality.
To achieve this, Netflix started investing in its business development sector and brought in a team of industry experts with vast experience in streaming services. The team worked tirelessly to make deals with internet service providers and studios, ensuring that the necessary licensing agreements were in place to enable the transition to an on-demand streaming service.
These deals not only allowed Netflix to stream content but also facilitated their shift to producing in-house content, which would go on to be a game-changer in the industry.
The Importance of Business Development for Continuous Growth
Once Netflix had made the transition, they continued to invest in business development to keep up with the ever-changing industry demands. With the industry now being highly competitive, they needed to stand out and create more original content.
Netflix focussed on researching new international markets and making the necessary agreements to enter these markets. They understood that providing localized content and shows for different countries would help in attracting new viewers. Additionally, they incorporated successful licensing deals and the acquisition of production companies to grow their content library.
Netflix’s approach to business development directly correlates to their success in becoming a top-tier streaming service provider.
Conclusion
Netflix’s success is not just due to its original content, but also its strategic approach to business development. Their ability to identify emerging trends in the market and capitalize on them through deals, agreements and strategic partnerships made them what they are. Therefore, businesses should take a page out of Netflix’s playbook and consider investing in business development for sustainable, long-term growth.
