Subscription Business Model – The digital assets are the secret behind Netflix’s business model. Netflix follows a subscription-based video-on-demand model for generating revenue. The simple three video subscription plans (basic, standard, and premium) propel it’s value to multi-billion dollar revenue. Establishing Novel content, TV Programs and In-house shows seek better demand among the viewers.
The cross-platform video delivery across multiple devices & operating systems is the major strategy for maximizing fan base. This is what made Netflix’s accessibility to a billion users.
Though there is plenty of VOD platform providers in the market accessibility of the content from any device (whether may it be a browser, Smart TV, tablet, mobile browser & mobile application) creates a difference.
Exclusive programs, award-winning shows, and some reality shows encourage users to subscribe to Netflix. Apart from the third party publishers, Netflix encourages in offering a master of none and some in-house shows which you can’t find on any VOD app. This native content adds credibility to Netflix’s growth.
Though Ads are another source for generating revenue for Netflix. A complete Ad-free feature lets users and independent publishers browse content, this includes a premium video on demand subscription.
So, with these ideal business models, Netflix generates a good number of profit. Coming back to the scenario of building a video streaming website like Netflix is no more impractical.
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