Earlier this week we reported on Netflix’s latest financials, but as a follow-up, the TV/film service has published a Long Term View document that makes fascinating reading.
It outlines Netflix’s vision for the future of television for starters: “Apps will replace channels, remote controls will disappear, and screens will proliferate…”
It’s also good on Netflix’s decision to take a “singular focus” on its subscription-based business model. “We don’t have pay-per-view and we don’t have advertisements. Those are fine business models that other brands do well. We choose to be the best at our model.”
Some of the costs are outlined too: Netflix is currently spending $350m a year on improving its service and app, and more than $2bn a year on content licensing and the creation of original shows.
But the part that jumped out to us, thinking about music, was the ‘Winning more moments of truth’ section. Moments of what?
“Those decision moments are, say, on Thursday 7:15 pm or Monday 2:40 am when our member wants to relax, enjoy a shared experience with friends and family, or is just bored. They could play a video game, surf the web, read a magazine, channel surf their MVPD/DVR system, buy a pay-per-view movie, put on a DVD, turn on Hulu or Amazon Prime, or they could tap on Netflix. We want our members to choose Netflix in these moments of truth.”
They could play music, of course. This idea of moments of truth is just as relevant for Spotify, iTunes, Rhapsody, Deezer and all the other digital music services who aren’t just competing with one another, but with other forms of entertainment and media.
“We win those moments of truth when members expect, based on their prior experience with us, that Netflix will be pleasurable, compared to all those other options,” explains the document. “When we deliver enjoyment, members watch more Netflix, continue their membership, and evangelize Netflix to their friends.”
How many digital music services are also delivering on this?