The Netflix Model
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- January 28, 2019
Netflix has really taken over the movie and television entertainment experience.
Market research from Blockbuster showed that people liked seeing the back of VHS’s and DVD’s – I know I did. But the real reason why Netflix won was because of their unbeatable price. $7.99/ month (now, they’ll go up to $10.99). So cheap for dozens (and now, hundreds of movies and television shows). Regardless of convenience, Blockbuster couldn’t compete on price.
Think of models for your business where you can offer a lot of bundle for a low price, at least as an entry level offer. Add in a subscription model to it and you’re golden.
Sumo Briefcase did a very good job with this. Noah Kagan sought after all kinds of business applications and offers them as a bundle for around $40 per month. This is a great value for not much money. Try to make things as enticing for people as possible to join. If it’s a subscription model, you’ll get recurring revenue and if there’s a lot of value there, odds are they won’t cancel even if they don’t use it much.
iTunes took the idea of music and allowed you to buy singles for $0.99.
I know I hated buying the album for $13.99 or $19.99 in some cases when I only listened to one song. They found a way by negotiating with the music industry.
Think outside the box. Partner up with people who have what you want.