In 1997, Reed Hastings, a man over 30 years old, owner of a small software company, rented the movie: "Apollo 13" at a Blockbuster store. After he didn’t return the tape in time, establishment charged $ 40 surcharges concept, it did reflect that this business doesn’t work as gyms, where you pay a monthly fee and facilities are used as often as you like.
So he launched his own DVD rental company called Netflix, which offered rents via internet which were delivered by mail and had no time limit to return them because they only had to pay a monthly fee.
The idea was a success and the company now offers movies and TV shows that can be viewed on any device connected to the Internet.
Beyond an innovative idea, Netflix’s success is the analytical intelligence, in other words the mathematical capabilities, statistical and data management to analyze customer behavior and buying patterns. That is why Netflix can recommend movies and TV shows that match the profile preferences of each person.
Netflix uses a variety of qualitative and quantitative approaches, including surveys, tests to its users, concept development, test advertising, data mining, brand awareness studies, subscriber satisfaction, channel analysis, segmentation studies and more. With all this knowledge was able to launch their own highly successful series like House of Cards and Orange Is the New Black, which were designed based on the opinions of their own customers.
Unless a bump in 2011, Netflix growth has been spectacular over the years, not only in growth of its portfolio and number of users, but also and especially of turnover and profits, what really matters in a business.
In that sense, last year Netflix billed no less than 5,500 million dollars, a negligible figure for a company that was born with two employees and now employs more than 2,180 professionals in different countries. Its assets are currently valued at more than 7.056 million dollars, including their content licensing and own productions of the company.
And most important: Netflix is profitable. Unlike many of its rivals in the industry of digital content in subscription (music, film and television or reading).
With this in mind we can say that any company that invests in a serious knowledge of the consumer will be strengthening its stay in the market, so next time you doubt whether market research is necessary or not, just remember Netflix.