Netflix (NASDAQ:NFLX) is the exemplary business of the streaming market. Ask anyone who owns Netflix stock, and they’ll agree that there’s always a reason to celebrate.
For the most part, whenever Netflix releases a new hit show, the chances are that its subscriber count will grow exponentially. Not only does this elaborate on the company’s online presence. But it also solidifies its competitive advantage in ways that can’t be compared.
Of course, given Netflix’s popularity, it should be noted that people get to see this effect in action rather often. But why is this important to know right now? Well, because it has happened again. This time due to the release of Squid Game.
Evaluating Squid Game’s Success
In retrospect, Netflix’s key to success comes on many levels. First and foremost, we’ve got to applaud the company’s efforts in recognizing the foreign markets.
Over the years, Netflix has spent lots of money releasing content originating from other countries. So far, their overall selection has been well received for the titles they like to push the most.
In doing this, Netflix is accomplishing two main things. 1) With American viewers, it increases their demand for more content like it. 2) With audiences outside the US, it increases the interest in the platform itself.
Publishing these sorts of content is a great way to attract more users to the platform—both from the US and beyond.
Secondly, the Netflix platform uses a well-designed algorithm that helps its user base find the content they’d like to watch the most. Even if they’re unfamiliar with movies or TV shows like Squid Game, the algorithm will know if they’ll like it way before they do.
As expected, this adds yet more value to Netflix’s investments in foreign content. Think of it as an inner marketing space. One that will ensure that the masses see other Netflix products.
Thirdly, people talk. More importantly, they talk about the stuff they like. Such was the case with a product like Squid Game. People recommended it to their friends by the millions, and online newspapers pitched it to their audiences.
Of course, this brings yet more interest to the series itself and the overall platform.
To sum things up, investors should know that Netflix is constantly working towards having a staggering amount of quality content. In addition, they’ve got the means to push its introduction to the public. More so, once it’s been formally introduced, it also has the means to increase in popularity almost in an automated way.
This formula is what helped Squid Game reach over 100 million households around the globe. Even better, this formula can certainly be put into action yet another time. And we’ll get to see it once Netflix launches yet another promising property.
Squid Game is but an example of Netflix’s potential for the upcoming future.