When Iqiyi went public in 20 18, Gong Yu once said that the target of iQiyi was the American streaming media giant Netflix. He mentioned at that time: "At present, Netflix is a successful video company in the international market, but the business model of iQiyi is more mature and advantageous." Nowadays, Iqiyi is one step away from "Naifei Dream", but the days in Netflix are still booming. In the third quarter of 20021year, Netflix achieved revenue of US$ 7.483 billion, a year-on-year increase of16%; The number of households paying fees globally increased by 4.38 million; Operating profit1755 million USD, up by 33.5% year-on-year; Net profit1449 million USD, up 83.4% year-on-year; Earnings per share were $ 3. 19, exceeding Wall Street's expectation of $2.56.

Then, Netflix, which has been established for more than 20 years and started from DVD mail rental business, has any way to make money for reference?

Create a "moat", and the explosive content is the trump card.

Mention Netflix, House of Cards, Crown, Sense8, Strange Tales, Arsène Lupin and a series of explosive drama titles will flood into the audience's mind.

The Squid Game, which was launched in September 20021year, is even more popular all over the world. Netflix disclosed in the financial report that this drama has become the largest TV series ever broadcast in Netflix, and it has been watched by142 million users around the world within four weeks of its launch. At present, there are 20.1400 million users in Netflix, which means that about 2/3 of Netflix's users all over the world have seen the drama, which is a "global explosion".

Based on its strong appeal to users all over the world, Squid Game has brought considerable direct profits to Netflix. According to Bloomberg News, the production cost of this drama is only $21400,000, which is equivalent to $2.4 million per episode, while Netflix estimates that Squid Game will bring more than 40 times the cost, about $8.9 1 100 million.

It can be said that "building a moat with homemade content" is one of the secrets of Netflix's success.

Pay attention to user experience and cultivate the habit of paying.

When domestic long video platforms have caused audiences to vomit and even cause consumer rights lawsuits repeatedly because of overwhelming advertisements, increasing membership prices and various charging modes such as advanced screening, Netflix attaches great importance to good user experience.

As early as the stage of mailing DVD, Netflix provided users with return bags and stamps to facilitate users to send back discs.

Go out of North America and play the global strategy card.

In view of the fact that there is always a ceiling for the growth of users in a single market, Netflix started its globalization strategy in 20 16-to go out of North America and attract the world audience. In the third quarter of 20 17, the number of international paying users in Netflix officially surpassed that in the United States.

To develop new markets, we not only need to solve the problems of channels, operations and cooperation, but also need to study the content preferences of users with different tastes, explore the film and television industry ecology in different markets as outsiders, and invest manpower, financial resources and time to compete with local content teams. However, Netflix has achieved remarkable results. Choosing to cooperate with creative teams in different regions is a shortcut it has explored. Squid Game is a successful practice under this background-as a well-deserved global explosion, it represents the successful promotion of Netflix's globalization strategy. Besides, the British drama Crown, the German drama Diablo and the French drama Arsène Lupin are also the achievements of Netflix's globalization strategy.

According to Netflix's financial report, it has produced localized TV series and movies in about 45 countries/regions. It can be said that while recruiting outstanding talents from all over the world to provide high-quality content for themselves, Netflix has also successfully pocketed the membership fees of audiences from all over the world.

Diversification, looking for a new track

Besides the content, Netflix is also constantly looking for a new track.

Since the beginning of this year, Netflix has made frequent moves in the field of games, not only acquiring the game development studio Night School Studio, but also hiring mike weir Verdu, a former Facebook and game developer, as the vice president to lead its video game department. During his tenure at EA, Verdu developed a number of popular mobile games, including The Sims, Plants vs Zombies and Star Wars series. 1 1 On the 3rd of March, Netflix launched five mobile games, namely, Strange Tales: 1984, Strange Tales 3: Games, which were adapted from popular IP in Netflix, and three casual games with different styles, One Ball Into the Soul, Card Explosion and Tilting the Ball.

The field of e-commerce is also a new force point for Netflix. As early as 20 16, Netflix cooperated with American young fashion brand Hot Topic to sell the derivative products of Strange Tales. In the middle of this year, Netflix announced the launch of its own independent e-commerce platform Netflix.shop to sell the peripheral products of Netflix's popular dramas. In terms of sales categories, clothing, accessories, toys and home are all involved. At the same time, the e-commerce platform also actively cooperates with trendy brands and cutting-edge designers to launch many limited-edition items with high premium.

It is worth mentioning that "game+e-commerce" is also a diversified business track where domestic video websites have been testing water for a long time. In the future, it is still unknown who will be better on the new track, the international giant or the local tycoon.