What if I tell you core value proposition of Netflix is not content

Netflix subscription seems to be such an awesome value proposition. Thousands of hours of premium content worth Rs 650 per month sounds like a killer deal right?


Imagine first month is free and you start paying from month two.

First two months you just reap the returns, binge-watch the shows you really want to watch. You consume your favorites. You feel great that you got an awesome deal.

But here is the real deal.

After the first two months, every month that you pay generates diminishing value to you as a viewer.

Because you don’t pay for what you really want but you pay for what is available and what Netflix suggests you.

So let us say if you consume IMDB average 9 pointers in the first two months.

In months three and four of your subscription, you might consume IMDB 8 pointers.

Every month Netflix just ads a few hours of worthy content.

In long term, Netflix wins we lose.

I believe the core #value proposition is not content, instead, the core value proposition lies in making you believe that the offering is very cheap.

Like you buy a 2L heavily discounted Coke bottle and feel like a winner!

*on a side note the above analysis is not applicable to people who share their Netflix accounts with dozen other people 🙂


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