Streaming services have interesting global marketing channels because of their unique subscription business models. Since streaming services are within the digital space, their international distribution channels are less complex. They do not require wholesalers, retailers, or intermediaries such as merchant or agent intermediaries. Instead, they reach their consumers globally through direct sales through monthly or annual subscription fees.
The pandemic has impacted most industries, including streaming services. While there has been an increase in usage of streaming services lately, a lot of production for shows and movies have been paused that has impacted the global marketing channel strategies of many of these services. In response to this problem, streaming companies have released many movies that were initially expected to be released in theaters on their platforms. This shift has allowed global marketing channels to be transformed in that many new movies have been introduced to these streaming services much earlier than they traditionally have been. This shift has completely transformed the entertainment industry that was already transforming prior to the pandemic. In the United States alone, subscription for streaming services has grown by 50% in 2020.
Steaming services utilize global marketing strategies very efficiently because having a digital company allows for a higher potential of global expansion. Netflix is a global market leader, and it took them only seven years to reach 190 countries. Often their international revenues have also been much larger than their domestic sales. Netflix has been successful in global expansion because they did not try to enter many markets simultaneously. This company first expanded globally to Canada. They made this strategic decision because they knew that this country had a lot of similarities with the U.S. This allowed them to improve their core competencies outside of their main established market in the U.S. Netflix took the lessons that they learned during their initial phase of global expansion and applied their experiences to a larger form of global expansion.
They strategically expanded to countries that they believed they could be successful in such as countries where internet was more readily available. They made a lot of investments in data analytics as well, which helped them enhance their global marketing channels. They also have tried to improve their global marketing channels by enhancing their mobile platform as many consumers in many regions of the world primarily use this method as well as working on building relationships with mobile and TV companies and internet service providers. These strategies have helped this streaming service optimize their global marketing channels to enhance their platform experience for consumers around the world.