a case study on netflix

Table of Contents

Netflix target audience , what are the key principles of netflix marketing, marketing strategy of netflix, digital marketing strategy of netflix, 5 key takeaways from netflix marketing approach, conclusion , a case study on netflix marketing strategy.

Netflix was founded in 1997, offering online movie rentals with less than 1000 titles. Soon, it switched to the subscriber-based model, and in 2000 Netflix introduced a personalized movie recommendation system. By 2005 Netflix had over 4.2 million subscribers and started work on a video recommendation algorithm. And finally, in 2007, Netflix began its streaming services and original content creation. By 2016 Netflix had over 50 million subscribers; the story continues today as it is a worldwide presence in the video-on-demand industry. 

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Netflix marketing strategy is undoubtedly a guide for digital marketers worldwide. It is a learning experience to know how this digital media streaming company outperformed all others in the market. 

Netflix's target market is young, tech-savvy users and anyone with digital connectivity. The audience of Netflix is from diverse age groups and demographics. 

However, most of the audience are teenagers, college-goers, entrepreneurs, working professionals, etc. Netflix aggressively works on content expansion and personalization to expand the user base. They separate the kids' and adults' audiences based on their maturity levels. 

Netflix is a fantastic example of an integrating marketing strategy . It is integrated, agile, and customer-driven to make the maximum impact. Netflix follows a customer-centric model to deliver a seamless experience. The platform follows integrated marketing for effective targeting and makes the best use of content marketing for data analytics. 

• Customer-centricity: Netflix focuses on creating a solid connection with its customers by engaging them personally and personalizing their viewing experience. They also use clever marketing tactics to get people to watch their shows.
• Integrated viewing experience: Multi-device and up-to-date no matter where you view it from, makes the experience combined.
• Innovation: Modern marketers must use data analytics to create experiences that delight consumers. Netflix uses customer data analytics to get content recommendations because it knows which movies its customers like to watch. For example, if a Netflix user likes Rocky, it will also offer them sports documentaries. As you manage your business, you, too, need to use data analytics for effective marketing and website optimization.  

Netflix uses data-driven and customer-centric marketing strategies that work in the digital age. Netflix's success relies on constant analysis and optimization, so you can use these tools for marketing your business online.

Netflix's marketing strategy is a surefire example of innovation and modern-day technology growth. The platform has been eager to bring the changes per market need or user demand. The evolution of the marketing tactics from time to time is one of the core reasons behind its success. 

Netflix proves that a brand can connect with customers easily through regular analysis and optimization. Simply put, Netflix's advertising strategy is full of agility, data-collection, user-centricity, personalization, and dedication. Major and minor brands can follow such a strategy and boost brand exposure and market value. 

Let's walk through 5 effective strategies of Netflix's advertising strategy that led them to the most disruptive business model. 

1. Use Personalized Content

Netflix is an excellent example of how personalized content can improve user satisfaction. Netflix knows what TV shows and movies its users like to watch. It uses this information to create customized recommendations for them. This allows them to find the content they enjoy without searching through many lists. It also ensures that users are always getting the latest and greatest content. This level of personalization is critical for online users because it enhances their experience and makes them more likely to return to a site in the future. 

2. Ensure Multi-mode Experience

Starting with a DVD service, Netflix's journey has been successful because of its multi-device strategy. You can open Netflix on TV, computer, smartphone, and tablet with seamless content continuity being watched. The company shows zero restriction in meeting the customers wherever required. Netflix follows both online and offline promotion strategies to boost user engagement. Be it any medium; their marketing strategy remains aligned wherever it can work. 

3. Blend Technology With Marketing Tactic

You wouldn't find two Netflix accounts with the same interface or suggestions. The recommendation shows order is as per user activity and ever-changing. They change the artwork frequently to add a sense of newness. Netflix puts modern-day technology to good use. The platform keeps on having new features to gain maximum engagement. Machine learning is a proven technology trend to transform marketing research to the next level. The blend of ML into advertising is what helps Netflix Marketing Strategy. 

4. Target Emails Like Any Other Marketing Channel

It is wrong to say or consider that email marketing is dead. Netflix is one solid example of a company making the most out of email marketing. They are one step ahead and pairing the email campaigns with machine learning systems. It helps gather more user data and preferences—further, the data segments into multiple user groups for precise and effective customer targeting. So, email marketing can introduce Netflix to new users and show relevant recommendations to the old users. One essential tip from Netflix email marketing is to be creative and take risks. Those old boring emails wouldn't help get such an impact as Netflix today. 

5. Create a Buzz With Better Interactions

Netflix has used the best content marketing strategy in the last decade. The company thinks of an out-of-the-box way to grab quick attention from users. They are bringing standalone products and unmatched experiences. On top of everything, the platform has a seamless communication channel to boost momentary awareness and recognition. The platform allows the audience to be involved in the story and make decisions. This unpredictable move is a proven game-changer for revolutionizing future television. The incomparable buzz in the platform keeps the user stuck to binge-watching. The users feel high engagement in the hopes of finding a happy ending. 

Hence, Netflix happens to be a unique example and inspiration for many fellow companies. They have done a commendable job in content, branding, business model, and product. Netflix marketing strategy has a lot to offer to market enthusiasts and students.

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Netflix’s Competitive Strategy & Growth Strategies

Netflix’s competitive strategy and growth strategies define the operational activities and tactics for developing the business. The competitive advantages based on the company’s generic competitive strategy support competitiveness against many large firms in the entertainment industry. Netflix’s intensive growth strategies use these competitive advantages to grow the business, such as by competing to grow the company’s market share. The company’s strategic objectives indicate the importance of low costs and a large international subscriber base. The combination of Netflix’s competitive strategy and growth strategies ensures that the company improves its financial performance and finds new ways to generate more revenues.

The appropriateness of Netflix’s competitive strategy depends on the industry situation and the competitive environment. The company’s strategic prioritization of cost effectiveness for competitive advantage is based on the industry environment where many firms compete based on price. As a result, Netflix’s growth strategies prioritize market share growth to ensure profitability despite low-cost measures.

Netflix’s Competitive Strategy

Netflix’s competitive strategy is cost leadership , which functions as the primary strategy for the company’s competitive advantages. According to Porter’s model of generic strategies, cost leadership ensures competitive advantage based on low costs that can be used to offer competitive prices to the company’s target customers, e.g., subscribers. The cost-based nature of this competitive strategy has wide-ranging effects on Netflix’s strategic objectives. For example, competitive prices facilitate market reach maximization, which is a strategic goal based on Netflix’s mission statement and vision statement . Low costs enable profitable operations despite low prices, which attract more subscribers around the world. This means that Netflix’s competitive strategy of cost leadership facilitates endeavors for growing the company’s market share.

Netflix also uses differentiation as a secondary competitive strategy. The goal of this strategy is to develop competitive advantages based on factors that make the company stand out when compared to rivals. For example, as one of Netflix’s competitive strategies, differentiation is implemented in the production of original content (movies and series), which ensures the company’s competitive advantages by retaining subscribers who prefer to watch content that is not available from competing video streaming services. These competitors include the entertainment production and streaming services of Disney , NBCUniversal, and Sony , as well as Google’s (Alphabet’s) YouTube, Apple , Amazon , Microsoft , and Facebook (Meta) . The Five Forces analysis of Netflix demonstrates that these companies’ competitive strategies create a challenging industry environment. Netflix’s competitive strategy of differentiation helps address this competition and its strategic challenges.

Netflix’s Growth Strategies

Netflix’s growth strategy is market penetration , which is the primary driver of the company’s growth and expansion in the international market. In Ansoff’s matrix, this intensive growth strategy’s objective is to grow the business by selling more of current products to the company’s current market. For example, Netflix aims to gain more subscribers through its current operations in North America, Europe, and Asia. A bigger market share equates to higher revenues and a bigger market presence that can be used to launch new products. For this intensive growth strategy of market penetration, the competitive advantages enumerated in the SWOT analysis of Netflix are used to penetrate markets and gain market share despite competition. Also, the generic competitive strategies of cost leadership and differentiation enable attractive pricing and unique entertainment content, respectively, to attract more subscribers for this growth strategy of market penetration.

Netflix also uses product development as a secondary growth strategy. The Ansoff matrix states that this intensive growth strategy involves offering new products to the company’s current market. In this case of Netflix’s growth strategy, the company’s strategic objective is to produce new original movies and series, which are new products for current and new subscribers in current markets. New original content makes the company’s streaming service an attractive option for customers. The requirements of product development as an intensive growth strategy apply to Netflix’s operations management , such as in maximizing productivity in producing new movies and series. New entertainment content resulting from the application of this growth strategy contributes to uniqueness that enables the company’s generic competitive strategy of differentiation.

Netflix applies diversification as a minor growth strategy with a limited impact on the company’s current business growth. In Ansoff’s matrix, this intensive growth strategy’s objective is to produce new products for new markets. In this case of Netflix’s growth strategy, product development involves offering entirely new products other than the company’s initial core offerings. For example, the company now offers mobile games. The mobile gaming market can support new business growth by attracting gamers, especially those who do not yet have a Netflix account. As a growth strategy, diversification involves new teams, groups, or divisions in Netflix’s organizational structure (business structure) , which influences the availability of resources for implementing this growth strategy. The generic competitive strategy of differentiation ensures that these new products are unique. Also, Netflix’s competitive strategy of cost leadership determines the cost structure and limits for these new products’ competitive advantage based on low costs that translate to affordability.

• Gómez, R., & Munoz Larroa, A. (2023). Netflix in Mexico: An example of the tech giant’s transnational business strategies. Television & New Media, 24 (1), 88-105.
• Iordache, C., Raats, T., & Mombaerts, S. (2023). The Netflix Original documentary, explained: Global investment patterns in documentary films and series. Studies in Documentary Film, 17 (2), 151-171.
• Leppänen, P., George, G., & Alexy, O. (2023). When do novel business models lead to high performance? A configurational approach to value drivers, competitive strategy, and firm environment. Academy of Management Journal, 66 (1), 164-194.
• Netflix, Inc. – Form 10-K .
• Netflix, Inc. – Long Term View .
• Netflix, Inc. – Top Investor Questions .
• U.S. Department of Commerce – International Trade Administration – Media and Entertainment Industry .
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Willy C. Shih

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• August 2014
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Netflix in 2011

• Netflix in 2011  By: Willy Shih and Stephen Kaufman

A Case Study on Netflix’s Marketing Strategies & Tactics

As the spread of COVID-19 has affected most industries and economies worldwide, people have been forced to stay contained at home to prevent the spread of coronavirus. People have also been bored to death as they have nothing to do.

In this locked-up scenario, your best partner could be your Netflix account which contains thousands of interesting movies, series, and shows. We were discussing which brand to take up for this week’s case study, and then one of our team members got an idea, let’s take the famous OTT platform Netflix which has managed to entertain a large population in no time.

Today, we are going to discuss the story of a platform that is providing us streaming services, or as we call it video-on-demand available on various platforms- personal computers, iPods, or smartphones. Netflix cut through the competitive clutter and reached out to its targeted audience by curating some interesting  brand communication strategies  over the years.

Let’s get into the success story of Netflix’s Journey.

Netflix was founded on August 29, 1997, in Scotts Valley, California when founders Marc Randolph and Reed Hastings came up with the idea of starting the service of offering online movie rentals. The company began its operations of rental stores with only 30 employees and 925 titles available, which was almost the entire catalog of DVDs in print at the time, through the pay-per-rent model with rates and due dates. Rentals were around $4 plus a $2 postage charge. After significant growth, Netflix decided to switch to a subscriber-based model.

In 2000, Netflix introduced a personalized movie recommendation system. In this system, a user-based rating helps to accurately predict choices for Netflix members. By 2005, the number of Netflix subscribers rose to 4.2 million. On October 1, 2006, Netflix offered a $1,000,000 prize to the first developer of a video-recommendation algorithm that could beat its existing algorithm Cinematch, at predicting customer ratings by more than 10%.

By 2007 the company decided to move away from its original core business model of DVDs by introducing video on demand via the internet. As a part of the internet streaming strategy, they decided to stream their content on Xbox 360, Blu-Ray disc players, and TV set-top boxes. The ventures also partnered with these companies to online streaming their content. With the introduction of the services in Canada in 2010, Netflix also made its services available on the range of Apple products, Nintendo Wii, and other internet-connected devices.

In 2013, Netflix won three Primetime Emmy Awards for its series “House of Cards. By 2014, Netflix made itself available in 6 countries in Europe and won 7 creative Emmy Awards for “House of Cards” and “Orange Is the New Black”. With blooming streaming services, Netflix gathered over 50 million members globally. By 2016, Netflix was accessible worldwide, and the company has continued to create more original content while pressing to grow its membership. From this point, Netflix was unstoppable and today it has a worldwide presence in the video-on-demand industry.

Business Model of Netflix

The platform has advanced to streaming technologies that have elevated and improved Netflix’s overall business structure and revenue. The platform gives viewers the ability to stream and watch a variety of TV shows, movies, and documentaries through its software applications. Since Netflix converted to a streaming platform, it is the world’s seventh-largest Internet company by revenue.

Now, let’s have a look at the business model of Netflix. 1. Netflix’s Key Partners:

• Netflix has built more than 35+ partners across the world. They have partnered with different types of genres for subscribers to select from and enjoy watching.
• Built alliances with Smart TV companies like LG, Sony, Samsung, Xiaomi, and other players in the market.
• Built alliances with Apple, Android, and Microsoft platforms for the purpose of converting business leads from mail-in-system to streaming.
• Built alliances with telecom networks like Airtel, Reliance Jio, and Vodafone.

2. Netflix’s Value Proposition:  Netflix aims to provide the best customer experience by deploying valuable propositions. Here is how the online streaming brand strives to do so:

• With a 24*7 streaming service, users can enjoy shows and movies in high-definition quality from anywhere whether they are at home or traveling.
• Users get access to thousands of movies and tv shows and Netflix Original movies or shows.
• New signups can avail of a 30-day free trial and have the option of canceling their subscriptions anytime.
• Receive algorithmic recommendations for new items to watch.
• At Netflix, users have the flexibility to either turn on notifications and suggestions or keep them switched off.
• Netflix’s “user profiles” give leverage for users to personalize their user accounts and preferences. The User profiles allow the “admin-user” to modify, allow or ever restrict certain users.
• Sharing account options is one of the rarest features a movie platform can provide. Sharing accounts feature on Netflix allows spouses, friends, or even groups to share an account with specific filters and preferences already set.

3. Netflix’s Key Activities

• Maintain and continue to expand its platforms on the website, mobile apps
• Curate, develop and acquire licenses for Netflix’s original content and expand its video library.
• Ensure high-quality user recommendations to retain the customer base
• Develop and maintain partnerships with studios, content production houses, and movie production houses.
• Operate according to censorship laws. Netflix always promotes and operates within the boundaries of censorship.

4. Netflix’s Customer Relationships:  Netflix has designed a customer-friendly platform that offers:

• Self-Setup:  Netflix platform was originally designed to ensure that it is simple and easy to use. Developers of the website ensured to associate elements and themes that serve, promote friendliness, and provide self-setup.
• Unbelievable Customer Experience:  Customers can solve their queries by reaching the Netflix team through the website portal, emailing inquiries, and directly reaching the representative on call or live chat.
• Social Media Channels:  Netflix also engages its audience through social media platforms such as Facebook, Instagram, and LinkedIn. It advertises and offers deals to gain high attraction customers and enhance its customer base.
• Netflix Gift Cards:  Netflix offers its customers special promotional discounts and other gift cards as a part of their subscription plan.

Netflix’s Revenue Model

Netflix gained major popularity when the platform launched online streaming services. Let’s have a look at how the platform earns.

• Subscription-Based Business Model:  Netflix offers monthly subscription fees with three different price options basic, standard, and premium plan. Today, Netflix has over 125 million paid members from over 190 countries and generates $15 billion annually.
• Important partnerships:  Built alliances with a wide range of movie producers, filmmakers, writers, and animators to receive content and legally broadcast the contents required by aligning licenses.
• Internet Service Provider:  One of the most influential tactics implemented was its ability to build alliances with a wide range of movie producers, filmmakers, writers, and animators to receive content and legally broadcast the contents required by aligning licenses.

Netflix was able to establish a well-reputed image worldwide and increased its customer base day by day. When it comes to giving competition, the brand has devised various digital marketing strategies and has gained wide popularity on digital media platforms. With the help of the best digital marketing services, they have kindled the excitement and craze in the people to travel and host.

Digital Marketing Model of Netflix

In less than 4 years, Netflix has gathered a major share of the Indian market. Today a majority of households in India subscribe to Netflix, and that number is expected to rise this year and further in the years to come. The product is designed so well, that you remain engrossed in the content they deliver. They adopted top digital marketing strategies. Consult the best brand activation agencies. Further, let’s talk about a few of the digital marketing principles that Netflix has successfully implemented to gather customers.

1. Personalised Content Marketing:  People love using Netflix because they get a broad range of things to watch. Netflix’s library of TV shows and movies from all over the world is there for consumers to choose from at any time.

The reason that Netflix won the personalization game is that its advanced algorithm continues to rearrange the programs overtime on the basis of your viewing history. Hire some of the best  performance marketing agencies  for personalized content.

2. Website Development:  Netflix has designed its website with a user-friendly interface that allows customers to rate TV shows and movies, which then goes through Netflix’s algorithm to recommend more content they might enjoy. With the onsite optimization for the website, they have optimized each and every page for enhanced customer experience.

To easily get in the minds of customers, they have optimized their website for content by title, by an actor’s name, or even by a director’s name. By leveraging the  best website development services , they added a host of personalization features to their website with clean looks no matter which platform you are using.

3. Email Marketing:  Netflix tapped on email marketing techniques as a part of its digital marketing strategy and as a key component of customer onboarding and nurturing. New Netflix customers receive a series of emails that make content recommendations and encourage new users to explore the platform. Netflix marketers invest hours in building creative email marketing campaigns designed to engage and delight recipients. With the help of the  best email marketing services , they continue to enhance the experience of the customers

4. Search Engine Optimization:  Netflix makes use of search engine optimization services for the sake of improving organic research and establishing its brand presence. The brand aimed at the  best search engine optimization services  to drive traffic organically and adopted both on-page and off-page SEO strategies. They optimized their content with potential keywords that show up high in search results. They also tapped the strategy of International SEO to gain organic leads from the worldwide stage.

5. Social Media Optimization:  Today, social media platforms have become an integral part of digital marketing strategy. If you want to connect with your audience in real time, then it is the best platform to establish your brand image. As social media plays a vital role in the lives of people, Netflix decided to leverage the  best social media optimization services  that made them earn billions. They made use of the following platforms:

Through  creative social media optimization strategies,  Netflix has garnered more than 61 million Facebook followers. In just one year, the brand added 11 million followers to its account. Netflix posts nearly 90% of videos and the rests images. Videos featured on Netflix’s

Facebook pages are typically clips from interviews with the actors from the upcoming movies, clips from the upcoming movies and TV shows, offering audiences a sneak peek into what’s in store for them. Besides videos, the OTT platforms share images, GIFs, funny memes, and simple text posts featuring questions about current movies and TV shows.

Netflix carries 19 million followers. The majority of Netflix’s posts on Instagram are images, post scenes from TV shows featuring engaging captions to get a conversation going, and behind-the-scenes clips and interviews with actors. A recent video featured a behind-the-scenes bloopers video from the set of Stranger Things, which garnered 1.2 million views and almost 3,000 comments. Netflix uses a simple approach to posting, with most posts not featuring any hashtags at all.

Netflix carries 6.8 million followers on Twitter and has tweeted over 30,000 times. Netflix is renowned for its witty replies and comebacks on Twitter, and the brand tweets an average of 14 times a day. This shows just how important engagement is for the brand and how much it values brand awareness. These are the digital marketing techniques that the famous OTT platform adopted from time to time to the subscribers’ engagement and retention. Hence it has yielded high returns for their business.

Campaigns of Netflix

1. Netflix: The Spoiler Billboard:  Netflix’s new campaign uses spoilers of its most popular shows, including Stranger Things, Money Heist and Narcos, to promote social distancing amid the COVID-19 crisis, and while the effort is getting a lot of buzzes, it’s a fake.

2. FU2016:  To launch season four of the political drama House of Cards, Netflix worked with BBH New York and built a fake presidential campaign around the show’s lead character Frank Underwood. The campaign became the top trending topic on Facebook and Twitter during the debate, and it won a Grand Prix in the Integrated category at Cannes in 2016.

3. The Censor’s Cut:  The streaming company wanted to advertise Narcos Mexico in Thailand. Netflix worked with JWT Bangkok and cut around the offending images within each scene, leaving a clear enough outline that anyone could still identify what had been removed. The campaign achieved the opposite effect of what censorship is supposed to do by reaching 34 million people.

Conclusion Netflix is a rare example of a company doing everything right. From its branding and content right down to its business model and product, the company has always excelled at making smart, strategic decisions. With its large market share and focus on numbers, Netflix has managed to develop a deep understanding of its audience that very few others have. With this knowledge, paired with a strong, affordable product, there’s no limit to what this brand can do in the future.

Reach out to  Digital Marketing Agency for the best marketing strategies among different marketing platforms.

Experential

Netflix Product Strategy: A 2020 Case Study

Gibson Biddle

Previous VP of Product at Netflix.

Table of Contents

Netflix was the world’s largest streaming service in 2020 with over 193 million subscribers and climbing. Software as a service (SaaS) companies took notice and wanted in on the secret sauce to Netflix’s product strategy.  

What was their secret to onboarding new users and customer success?

I’m going to share a few models to help you define your product strategy. Each of these models will be brought to life with a mock 2020 articulation of Netflix's product strategy .

But First: How Netflix Started

Netflix’s product vision began with a simple goal – to get big on DVD. When Netflix started out, they were a DVD rental company, and customers had DVDs delivered to them via postal services. Then, the company’s vision evolved to become a leader in the streaming market. Going digital enabled Netflix to expand worldwide. Having achieved all of the above, Netflix is currently placing a strong focus on original content.

What is a Product Strategy?

Product strategy is a key part of product-led growth (PLG) . It’s a plan that helps your company establish a specific product vision and how teams work together to successfully achieve it. 

Before we begin to explore Netflix’s product strategy, it’s important to understand why product strategy is so important and necessary. 

Firstly, a strategic product plan helps us to communicate an inspired vision of the future . It’s one thing to have an idea in your head, but you need the right strategies in place to help communicate that vision to others.

Secondly, combining innovation and invention is no easy task. Inventing new solutions and features can be chaotic, and it’s almost impossible to be innovative without any chaos. However, products change, and company decisions cannot happen at random. There must be discipline, and a product development strategy is effective at blending these two forces.

A product development strategy is about forming hypotheses to what I call the DHM model . In other words, you need it to delight customers and do so in a margin-enhancing way. 

Finally, you need a product strategy to help facilitate prioritization . We must prioritize some things over others, and having a strategy in place can help you to do that while also communicating a plan.

As product leaders, we can do anything, but we can’t do everything . 

3 Product Strategy Frameworks 

A product strategy framework is a guiding light for every department in your SaaS company. I want to briefly introduce three models for product strategy because I’ll be sharing (in later sections) how to put each to use in the context of Netflix’s 2020 product strategy. 

Here are three models (or frameworks ) to define your product strategy:

• Get Big, Lead, Expand (GLEe) model is a product strategy model that helps provide a longterm vision. It’s about growing the company to get big in its first 5 to 10 years and then expanding into different chapters of growth later. 
• Grow, Expand, Monetize (GEM) model helps different departments like marketing, finance, and Product teams to align with each other. How do you prioritize growth, expansion, and monetization?
• Delight, Hard to Copy, Monetize (DHM) model is about delighting your users in hard-to-copy ways.  

The purpose of these models includes: 

• Encourage people to think long-term
• Build cross-functional alignment
• Help people to form hypotheses to compete long-term 

Netflix’s Product Strategy Framework: DHM

If you’re a product leader, like Netflix in 2020, your main job is to delight customers in hard-to-copy margin-enhancing ways.

So, how did Netflix’s product leaders achieve this?

Netflix uses a DHM framework.

The company offers customers a very convenient service with a wide selection of movies and TV shows they can stream instantly anytime, anywhere. Customers can navigate Netflix’s selection very easily, and they get a lot of value for their money. Plus, Netflix offers customers a range of high-quality and entertaining original content.

How Netflix’s Product Strategy Increases Profits

A key part of Netflix’s product strategy is to increase profits so they can reinvest in making an even better product in the future. I refer to this as margin-enhancing and Netflix effectively increases profits in various ways.

Let’s take a closer look at the last point in the graphic above [– right-size original content investment. 

Since Netflix wants to offer a wide range of movies and TV shows to suit all types of tastes and preferences, the company likes to invest in original content. However, they want to pay the right amount for this content. 

To do this as accurately as possible, Netflix predicts how many people will watch a certain TV show or movie and then line up the cost of investment with their prediction.

For example, Netflix predicted that 100 million people would watch their original series Stranger Things . Therefore, they were willing to invest $500 million in that series. The series Bojack Horseman was predicted to gain 20 million viewers, so the right-size investment in that show was estimated to be $100 million.

What Made Netflix’s 2020 Product Strategy Hard to Copy

In 2020, Netflix wasn’t the world’s biggest streaming service for nothing. It was very hard for other companies and streaming services to copy what Netflix did, and that made it difficult for competitors to compete.

Netflix is a trusted brand. You can trust Netflix to keep your personal details private. Their brand promise is “movie enjoyment made easy,” and they achieve this by providing viewers with personalized service and the freedom to watch on almost any device with an internet connection.

Here’s why Netflix is hard to copy:

• Unique technology
• Network effect 
• Economies of scale

The brand promise of Netflix is movie enjoyment made easy. The company is a movie subscription service that delivers fast, easy entertainment in a friendly, straightforward way. 

Netflix Product Team’s Priorities

The product team at Netflix prioritizes monthly retention as the company’s high-level engagement metric. The team prioritizes other metrics too, including growth and monetization.

When the COVID pandemic hit in 2020, movie theaters were closed, and more people had free time at home. The company’s product team focused on key high-level product strategies (see below):

Here’s an example of the Netflix 2020 rolling roadmap, which shows how Netflix is implementing each strategy every quarter:

Netflix Case Studies

Now, let's look at some ways Netflix was able to win their users' attention by offering additional products.

Case Study 1: Netflix Party

Netflix Party (now Teleparty ) is a Chrome extension app that has become increasingly popular since COVID-19. It allows users to watch the same movie at the same time. They can even chat with each other while watching a movie or TV show. 

In an isolated time, such as a lockdown during the pandemic, many people enjoyed using this Chrome extension to watch movies with friends and family long-distance.

But is this an idea that Netflix should execute itself?

In the past, Netflix has tried a few variations of social experiments, including Friends in 2009, Xbox Party Mode in 2010, and Tell a Friend in 2018. All three were killed off because not enough people used the features.

However, Netflix Party has proven to be quite a success. In 2020, the app grew from 500 thousand to one million in just 60 days and acquired 10 million downloads. This data shows a substantial proof of concept, making it a possible worthwhile investment for Netflix. But the question remains – will this delight in hard-to-copy, margin-enhancing ways?

Well, this extension is hard to copy, and it would take competitors years to mimic something of this scale. It has the potential to enhance profits via word-of-mouth and increase retention. 

Case Study 2: Auto-Cancel Inactive Members

Should Netflix auto-cancel inactive members ?

In 2020, one-half percent of Netflix members hadn’t used the service in the last 12 months. However, those members were still paying for the service despite rarely using it.

Some might argue that a better alternative would be to send those members an email notification alerting them to the fact they’ve been inactive for so long. The email could say something like, “Would you like to cancel?” Then, the user could decide whether they wanted to continue paying for the monthly subscription or cancel their membership.

If members say no, then their service would continue as normal. If they say yes, then their membership would be canceled. However, what happens to the members who don’t respond? Should their membership be auto-canceled?

In 2020, if Netflix were to auto-cancel all of the inactive members, the company would lose $100 million. Clearly, introducing the auto-cancel option was not a great way to enhance profits, as the company would be losing millions of dollars each year. But what about the delight and hard-to-copy side of their product strategy?

Offering the auto-cancel feature for inactive users may delight customers since Netflix automatically stops payments. The user could always rejoin if they choose to do so.

Auto canceling inactive Netflix users, in my opinion, would be a worthwhile strategy for Netflix to implement and here’s why:

I think that product teams and product leaders can learn a lot from Netflix’s winning 2020 product strategy, which can help you make more strategic day-to-day decisions and implement product strategies that will help you reach your vision and goals.

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• Patty McCord

When Netflix executives wrote a PowerPoint deck about the organization’s talent management strategies, the document went viral—it’s been viewed more than 5 million times on the web. Now one of those executives, the company’s longtime chief talent officer, goes beyond the bullet points to paint a detailed picture of how Netflix attracts, retains, and manages stellar employees. The firm draws on five key tenets:

Hire, reward, and tolerate only fully formed adults. Ask workers to rely on logic and common sense instead of formal policies, whether the issue is communication, time off, or expenses.

Tell the truth about performance. Scrap formal reviews in favor of informal conversations. Offer generous severance rather than holding on to workers whose skills no longer fit your needs.

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Trust people, not policies. Reward candor. And throw away the standard playbook.

Sheryl Sandberg has called it one of the most important documents ever to come out of Silicon Valley. It’s been viewed more than 5 million times on the web. But when Reed Hastings and I (along with some colleagues) wrote a PowerPoint deck explaining how we shaped the culture and motivated performance at Netflix, where Hastings is CEO and I was chief talent officer from 1998 to 2012, we had no idea it would go viral. We realized that some of the talent management ideas we’d pioneered, such as the concept that workers should be allowed to take whatever vacation time they feel is appropriate, had been seen as a little crazy (at least until other companies started adopting them). But we were surprised that an unadorned set of 127 slides—no music, no animation—would become so influential.

• PM Patty McCord was the chief talent officer at Netflix from 1998 to 2012 and now advises start-ups and entrepreneurs. She is the author of Powerful: Building a Culture of Freedom and Responsibility (Silicon Guild, 2018).

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The Power of Digitalization: The Netflix Story

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• First Online: 18 May 2020
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• Manuel Au-Yong-Oliveira 20 , 21 ,
• Miguel Marinheiro 20 &
• João A. Costa Tavares 20  

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1161))

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• World Conference on Information Systems and Technologies

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The evolution of technology, and mainly the evolution of the Internet, has improved the way business is done. Nowadays, most services are offered through a website or through an app, as it is much more convenient and suitable for the customer. This business transformation made it possible to get a faster and cheaper service, and companies had to adapt to the change, in order to fulfill customers’ requirements. In this context, this paper relates to this digital transformation, focusing on a case study about Netflix, a former DVD rental company and currently an online streaming leader. We aimed to understand Netflix’s behavior alongside this digital wave. Thus, we performed a survey, which had 74 answers, mainly from Portugal, but also from Spain, Belgium, Italy, Turkey, Georgia and Malaysia. Of the people who answered the survey, 90.1% were stream consumers, but only 59.1% had premium TV channels. From those 90.1%, 58.3% also said that they watched streams between two and four times per week, but the majority of premium TV channel subscribers (63.8%) replied that they watch TV less than twice in a week. We see a trend in which the traditional TV industry is in decline and streaming as a service has increased in popularity. Consumer habits are changing, and people are getting used to the digitalization era. Netflix is also confirmed in our survey as the market leader of the entertainment distribution business, as stated in the literature, and the biggest strength of this platform is its content.

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Au-Yong-Oliveira, M., Marinheiro, M., Costa Tavares, J.A. (2020). The Power of Digitalization: The Netflix Story. In: Rocha, Á., Adeli, H., Reis, L., Costanzo, S., Orovic, I., Moreira, F. (eds) Trends and Innovations in Information Systems and Technologies. WorldCIST 2020. Advances in Intelligent Systems and Computing, vol 1161. Springer, Cham. https://doi.org/10.1007/978-3-030-45697-9_57

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How Netflix Became A Master of DevOps? An Exclusive Case Study

Find out how Netflix excelled at DevOps without even thinking about it and became a gold standard in the DevOps world.

Table of Contents

• Netflix's move to the cloud

Netflix’s Chaos Monkey and the Simian Army

Netflix’s container journey, netflix’s “operate what you build” culture, lessons we can learn from netflix’s devops strategy, how simform can help.

Even though Netflix is an entertainment company, it has left many top tech companies behind in terms of tech innovation. With its single video-streaming application, Netflix has significantly influenced the technology world with its world-class engineering efforts, culture, and product development over the years.

One such practice that Netflix is a fantastic example of is DevOps. Their DevOps culture has enabled them to innovate faster, leading to many business benefits. It also helped them achieve near-perfect uptime, push new features faster to the users, and increase their subscribers and streaming hours.

With nearly 214 million subscribers worldwide and streaming in over 190 countries , Netflix is globally the most used streaming service today. And much of this success is owed to its ability to adopt newer technologies and its DevOps culture that allows them to innovate quickly to meet consumer demands and enhance user experiences. But Netflix doesn’t think DevOps.

So how did they become the poster child of DevOps? In this case study, you’ll learn about how Netflix organically developed a DevOps culture with out-of-the-box ideas and how it benefited them.

Simform is a leading DevOps consulting and implementation company , helping businesses build innovative products that meet dynamic user demands efficiently. To grow your business with DevOps, contact us today!

Netflix’s move to the cloud

It all began with the worst outage in Netflix’s history when they faced a major database corruption in 2008 and couldn’t ship DVDs to their members for three days. At the time, Netflix had roughly 8.4 million customers and one-third of them were affected by the outage. It prompted Netflix to move to the cloud and give their infrastructure a complete makeover. Netflix chose AWS as its cloud partner and took nearly seven years to complete its cloud migration.

Netflix didn’t just forklift the systems and dump them into AWS. Instead, it chose to rewrite the entire application in the cloud to become truly cloud-native, which fundamentally changed the way the company operated. In the words of Yury Izrailevsky, Vice President, Cloud and Platform Engineering at Netflix:

“We realized that we had to move away from vertically scaled single points of failure, like relational databases in our datacenter, towards highly reliable, horizontally scalable, distributed systems in the cloud.”

As a significant part of their transformation, Netflix converted its monolithic, data center-based Java application into cloud-based Java microservices architecture. It brought about the following changes:

• Denormalized data model using NoSQL databases
• Enabled teams at Netflix to be loosely coupled
• Allowed teams to build and push changes at the speed that they were comfortable with
• Centralized release coordination
• Multi-week hardware provisioning cycles led to continuous delivery
• Engineering teams made independent decisions using self-service tools

As a result, it helped Netflix accelerate innovation and stumble upon the DevOps culture. Netflix also gained eight times as many subscribers as it had in 2008. And Netflix’s monthly streaming hours also grew a thousand times from Dec 2007 to Dec 2015.

After completing their cloud migration to AWS by 2016, Netflix had:

And it handled all of the above with 0 Network Ops Centers and some 70 operations engineers, who were all software engineers focusing on writing tools that enabled other software developers to focus on things they were good at.

Migrating to the cloud made Netflix resilient to the kind of outages it faced in 2008. But they wanted to be prepared for any unseen errors that could cause them equivalent or worse damage in the future.

Engineers at Netflix perceived that the best way to avoid failure was to fail constantly. And so they set out to make their cloud infrastructure more safe, secure, and available the DevOps way – by automating failure and continuous testing.

Chaos Monkey

Netflix created Chaos Monkey, a tool to constantly test its ability to survive unexpected outages without impacting the consumers. Chaos Monkey is a script that runs continuously in all Netflix environments, randomly killing production instances and services in the architecture. It helped developers:

• Identify weaknesses in the system
• Build automatic recovery mechanisms to deal with the weaknesses
• Test their code in unexpected failure conditions
• Build fault-tolerant systems on day to day basis

The Simian Army

After their success with Chaos Monkey, Netflix engineers wanted to test their resilience to all sorts of inevitable failures, detect abnormal conditions. So, they built the Simian Army , a virtual army of tools discussed below.

• Latency Monkey

It creates false delays in the RESTful client-server communication layers, simulating service degradation and checking if the upstream services respond correctly. Moreover, creating very large delays can simulate an entire service downtime without physically bringing it down and testing the ability to survive. The tool was particularly useful to test new services by simulating the failure of dependencies without affecting the rest of the system.

• Conformity Monkey

It looks for instances that do not adhere to the best practices and shuts them down, giving the service owner a chance to re-launch them properly.

• Doctor Monkey

It detects unhealthy instances by tapping into health checks running on each instance and also monitors other external health signs (such as CPU load). The unhealthy instances are removed from service and terminated after service owners identify the root cause of the problem.

• Janitor Monkey

It ensures the cloud environment runs without clutter and waste. It also searches for unused resources and discards them.

• Security Monkey

An extension of Conformity Monkey, it identifies security violations or vulnerabilities (e.g., improperly configured AWS security groups) and eliminates the offending instances. It also ensures the SSL (Secure Sockets Layer) and DRM (Digital Rights Management) certificates were valid and not due for renewal.

• 10-18 Monkey

Short for Localization-Internationalization, it identifies configuration and runtime issues in instances serving users in multiple geographic locations with different languages and character sets.

• Chaos Gorilla

Like Chaos Monkey, the Gorilla simulates an outage of a whole Amazon availability zone to verify if the services automatically re-balance to the functional availability zones without manual intervention or any visible impact on users.

Today, Netflix still uses Chaos Engineering and has a dedicated team for chaos experiments called the Resilience Engineering team (earlier called the Chaos team).

In a way, Simian Army incorporated DevOps principles of automation, quality assurance, and business needs prioritization. As a result, it helped Netflix develop the ability to deal with unexpected failures and minimize their impact on users. 

On 21st April 2011 , AWS experienced a large outage in the US East region, but Netflix’s streaming ran without any interruption. And on 24th December 2012 , AWS faced problems in Elastic Load Balancer(ELB) services, but Netflix didn’t experience an immediate blackout. Netflix’s website was up throughout the outage, supporting most of their services and streaming, although with higher latency on some devices.

Netflix had a cloud-native, microservices-driven VM architecture that was amazingly resilient, CI/CD enabled, and elastically scalable. It was more reliable, with no SPoFs (single points of failure) and small manageable software components. So why did they adopt container technology? The major factors that prompted Netflix’s investment in containers are:

• Container images used in local development are very similar to those run in production. This end-to-end packaging allows developers to build and test applications easily in production-like environments, reducing development overhead.
• Container images help build application-specific images easily.
• Containers are lightweight, allowing building and deploying them faster than VM infrastructure.
• Containers only have what a single application needs, are smaller and densely packed, which reduces overall infrastructure cost and footprint.
• Containers improve developer productivity, allowing them to develop, deploy, and innovate faster.

Moreover, Netflix teams had already started using containers and seen tangible benefits. But they faced some challenges such as migrating to containers without refactoring, ensuring seamless connectivity between VMs and containers, and more. As a result, Netflix designed a container management platform called Titus to meet its unique requirements.

Titus provided a scalable and reliable container execution solution to Netflix and seamlessly integrated with AWS. In addition, it enabled easy deployment of containerized batches and service applications.

Titus served as a standard deployment unit and a generic batch job scheduling system. It helped Netflix expand support to growing batch use cases. 

• Batch users could also put together sophisticated infrastructure quickly and pack larger instances across many workloads efficiently. Batch users could immediately schedule locally developed code for scaled execution on Titus.
• Beyond batch, service users benefited from Titus with simpler resource management and local test environments consistent with production deployment.
• Developers could also push new versions of applications faster than before.

Overall, Titus deployments were done in one or two minutes which took tens of minutes earlier. As a result, both batch and service users could experiment locally, test quickly and deploy with greater confidence than before.

“The theme that underlies all these improvements is developer innovation velocity.” 

-Netflix tech blog

This velocity enabled Netflix to deliver fast features to the customers, making containers extremely important for their business.

Netflix invests and experiments significantly in improving development and operations for the engineering teams. But before Netflix adopted the “Operate what you build” model, it had siloed teams. The Ops teams focused on deploy, operate and support parts of the software life cycle. And Developers handed off the code to the ops team for deployment and operation. So each stage in the SDLC was owned by a different person and looked like this:

The specialized roles created efficiencies within each segment but created inefficiencies across the entire SDLC. The issues that they faced were:

• Individual silos that slowed down end-to-end progress
• Added communication overhead, bottlenecks and hampered effectiveness of feedback loops
• Knowledge transfers between developers and ops/SREs were lossy
• Higher time-to-detect and time-to-resolve for deployment problems
• Longer gaps between code complete and deployment, with releases taking weeks

Operate what you build

To deal with the above challenges and drawing inspiration from DevOps principles, Netflix encouraged shared ownership of the full SDLC and broke down silos. The teams developing a system were responsible for operating and supporting it. Each team owned its own deployment issues, performance bugs, alerting gaps, capacity planning, partner support, and so on.

Moreover, they also introduced centralized tooling to simplify and automate dealing with common development problems of the teams. When additional tooling needs arise, the central team assesses if the needs are common across multiple development teams and built tools. In case of too team-specific problems, the development team decides if their need is important enough to solve on their own.

Full Cycle Developers

Combining the above ideas, Netflix built an even better model where dev teams are equipped with amazing productivity tools and are responsible for the entire SDLC, as shown below.

Netflix provided ongoing training and support in different forms (e.g., dev boot camps) to help new developers build up these skills. Easy-to-use tools for deployment pipelines also helped the developers, e.g., Spinnaker. It is a Continuous Delivery platform for releasing software changes with high velocity and confidence.

However, such models require a significant shift in the mindsets of teams/developers. To apply this model outside Netflix, you can start with evaluating what you need, count costs, and be mindful of bringing in the least amount of complexities necessary. And then attempt a mindset shift.

Netflix practices are unique to their work environment and needs and might not suit all organizations. But here are a few lessons to learn from their DevOps strategy and apply:

• Don’t build systems that say no to your developers

Netflix has no push schedules, push windows, or crucibles that developers must go through to push their code into production. Instead, every engineer at Netflix has full access to the production environment. And there are neither strict policies nor procedures that prevent them from accessing the production environment.

• Focus on giving freedom and responsibility to the engineers

Netflix aims to hire intelligent people and provide them with the freedom to solve problems in their own way that they see as best. So it doesn’t have to create artificial constraints and guardrails to predict what their developers need to do. But instead, hire people who can develop a balance of freedom and responsibility.

• Don’t think about uptime at all costs

Netflix servers their millions of users with a near-perfect uptime. But it didn’t think about uptime when they started chaos testing their environment to deal with unexpected failure.

• Prize the velocity of innovation

Netflix wants its engineers to do fun, exciting things and develop new features to delight its customers with reduced time-to-market.

• Eliminate a lot of processes and procedures

They limit an organization from moving fast. So instead, Netflix focuses on hiring people they can trust and have independent decision-making capabilities.

• Practice context over control

Netflix doesn’t control and contain too much. What they do focus on is context. Managers at Netflix ensure that their teams have a quality and constant flow of context of the business, rather than controlling them.

• Don’t do a lot of required standards, but focus on enablement

Teams at Netflix can work with their choice of programming languages, libraries, frameworks, or IDEs as they see best. In addition, they don’t have to go through any research or approval processes to rewrite a portion of the system.

• Don’t do silos, walls, and fences

Netflix teams know where they fit in the ecosystem, their workings with other teams, dependents, and dependencies. There are no operational fences over which developers can throw the code for production.

• Adopt “you build it, you run it” culture

Netflix focuses on making ownership easy. So it has the “operate what you build” culture but with the enablement idea that we learned about earlier.

• Focus on data

Netflix is a data-driven, decision-driven company. It doesn’t do guesses or fall victim to gut instincts and traditional thinking. It invests in algorithms and systems that combs enormous amounts of data quickly and notify when there’s an issue.

• Always put customer satisfaction first

The end goal of DevOps is to make customer-driven and focus on enhancing the user experience with every release.

• Don’t do DevOps, but focus on the culture

At Netflix, DevOps emerged as the wonderful result of their healthy culture, thinking and practices.

Get in Touch

Netflix has been a gold standard in the DevOps world for years, but copy-pasting their culture might not work for every organization. DevOps is a mindset that requires molding your processes and organizational structure to continuously improve the software quality and increase your business value. DevOps can be approached through many practices such as automation, continuous integration, delivery, deployment, continuous testing, monitoring, and more.

At Simform, our engineering teams will help you streamline the delivery and deployment pipelines with the right DevOps toolchain and skills. Our DevOps managed services will help accelerate the product life cycle, innovate faster and achieve maximum business efficiency by delivering high-quality software with reduced time-to-market.

Hiren Dhaduk

Hiren is CTO at Simform with an extensive experience in helping enterprises and startups streamline their business performance through data-driven innovation.

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Haunting of Hill House creator Mike Flanagan says Netflix "refused at every turn" to release his movies and shows on DVD

A fter announcing that Hush would finally be released on DVD, Mike Flanagan explained to attendees at the ATX Television Film Festival that Netflix fought him tooth and nail when it came to physical releases.

"In the years I worked at Netflix, I tried very hard to get them to release my work on blu-ray and DVD. They refused at every turn. It became clear very fast that their only priority was subs, and that they were actively hostile to the idea of physical media," Flanagan reportedly told the audience during The Monologue Case Study panel.

"This is a very dangerous point of view. While companies like Netflix pride themselves on being disruptors and have proven that they can affect great change in the industry, they sometimes fail to see the difference between disruption and damage," he continued. "So much that they can find themselves, intentionally or not, doing enormous harm to the very concept of film preservation."

Flanagan's projects for Netflix include the movies Hush, Before I Wake, Gerald's Game, and the TV shows The Haunting of Hill House, The Haunting of Bly Manor, Midnight Mass, and The Midnight Club. Flanagan has since moved on to Prime Video, where he is creating a TV series based on Stephen King's Dark Tower novels.

Hush was removed from Netflix in early 2023 and can no longer be streamed anywhere online. The filmmaker also said during the panel that Hush would get its own DVD and Blu-ray release in the near future .

It's worth noting that physical media is in more demand than ever, with movies like Skinamarink and The People's Joker getting a special, limited VHS release. 

For more, check out our list of the most exciting upcoming movies coming your way in 2024 and beyond.

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Netflix viewers begging for another season of '10/10' harrowing crime thriller based on true story

Fans have been loving the extremely 'dark' eight-part suspense-packed series.

Rhiannon Ingle

There's a whole lot of new releases dropping on Netflix perfect if you're after something that'll give your pulse racing.

But, there are a bunch of banging series from years gone by that are ideal for a binge-watch if you're looking for your next true crime fix to sink your teeth into.

And there is one in particular, which first hit the streaming platform in 2022, that seems to have gone down a storm with Netflix viewers who are now begging for another season of the '10/10' series which is based on a true story.

The eight-part suspense-packed series follows a psychiatrist who takes in a troubled young patient named Mae who escaped from a devil-worshipping cult, putting her family and life in danger.

While the series, which stars Emily Deschanel and Sam Jaeger, is set in a fictional US town, it is actually loosely based on an extremely eerie true story.

Writer of the series Daria Polatin has previously confirmed that it's based on a true crime case in Ohio.

"The bones of the story are true and happened, and I wanted to take that as a jumping off point," she told Stylist.

Polatin, who adapted the series from her book of the same title, revealed that she invented a fictional Midwestern town where a young woman has a harrowing escape from a satanic cult.

"It’s inspired by true events, but it’s not a documentary," she added. "That’s just a different kind of storytelling.

"For this, I felt that the best outlet would be to free it up creatively and fictionalise the details and let it take on a life of its own. [The real story] did take place in Ohio…"

If you hadn't cracked it already, the series is Devil in Ohio .

Check out the official trailer here:

True crime fanatics are clearly loving the gripping series, with one Facebook user on LADbible's Netflix Bangers page writing: "I absolutely loved it!"

"Loved it. Need another season," penned a second, while a third echoed: "Loved this show. I hope they make a 2nd season."

A fourth admitted: "Loved and enjoyed the show. Felt bad when I heard that they aren't renewing."

"Really good!!" gushed a fifth. "Couldn’t stop watching!"

Someone else chimed in: "I enjoyed it. The cult in that series is very loosely based on an actual cult from Ohio which is what drew me to it."

And a final Facebook user added: "It’s actually really good I hope there’s a season 2."

Hype for Devil in Ohio has transcended across social media platforms, with many other viewers raving about it on X too.

" Devil in Ohio on Netflix is good as f**k!! 10/10," gushed one, while a second piped up: "The Devil in Ohio series on netflix was a 10/10 for me!"

" Devil in Ohio was dark, gritty, suspenseful," wrote another X user. "Everyone on and off camera did an incredible job. Wonderful work."

We'll be adding this one to the list!

Devil in Ohio is currently available to stream on Netflix.

Topics:  Netflix , TV And Film , True Crime , Tyla Recommends , US News

Rhiannon Ingle is a Journalist at LADbible Group. She graduated from the University of Manchester in 2021 in English Literature. Alongside her studies, she was the Lifestyle Editor of The Mancunian, the largest student newspaper in the United Kingdom. Her favourite topics to write about include sex and relationships, bizarre lifestyle trends and all things travel.

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Equilar | Associated Press CEO Pay Study

S&p 500 ceo pay rebounds after decline in 2022, june 3, 2024, amit batish.

CEO compensation is a multifaceted and often scrutinized aspect of corporate governance. Public companies typically incentivize CEOs to drive corporate performance with lucrative pay packages. Meanwhile, the magnitude of the pay packages awarded to chief executives is regularly a topic of public debate, often drawing the ire of several stakeholders.

For 14 years, Equilar has partnered with the Associated Press to study CEO compensation at S&P 500 companies. The 2024 edition identifies trends in compensation awards for CEOs who served in that role at an S&P 500 company for at least two years as of fiscal year end 2023. Companies must have filed a proxy between January 1 and April 30, 2024 to be featured in this study.

CEO Pay Spikes 12.6% in 2023

The U.S. economy was notably strong in 2023, especially compared to the previous year. CEO pay is often influenced by market conditions, and in 2023, this was evident as the median total compensation* for S&P 500 chief executives rose by 12.6% to $16.3 million. This represents a significant increase from last year's study , which reported a modest 0.9% rise.

In line with the average CEO pay package, stock awards made up approximately 70% of total compensation in 2023. The median value of stock awards jumped 10.7% to $9.4 million in 2023, largely contributing to the overall rise in total compensation.

The highest-paid CEO in this year’s study is Hock E. Tan of Broadcom, who was awarded a pay package totaling $161.8 million in 2023. Tan was the only CEO that received a nine-figure compensation package in 2023. Fair Isaac Corporation CEO William J. Lansing was second on the list, earning $66.3 million in 2023. This year’s top 10 highest-paid CEOs list can be found in the table below.

As CEO Pay Rises, the CEO Pay Ratio Follows Suit

The median S&P 500 employee earned $81,467 in 2023, up 5.2% from 2022. As a result of CEO pay increasing at a higher rate than the median employee, the CEO Pay ratio increased from 185 in 2022 to 196 in 2023. With the ratio being a required disclosure for seven years now, its impacts on executive pay practices remain limited. Nonetheless, it will continue to be a topic of discussion among the general public.

CEO Pay for Women Outpaces Overall S&P 500

The 2024 edition of our study features 341 chief executives, of which 25 are women—this marks an increase from 20 in last year’s study. Overall, the women in this year’s study were awarded a median pay package of $17.6 million in 2023, 7.7% more than the index median. For the fifth consecutive year, Advanced Micro Devices CEO Lisa T. Su was the highest-paid woman in 2023. Su’s pay package, totaling $30.3 million, edged out General Motors CEO Mary T. Barra’s total compensation ($27.8 million) by roughly $2.5 million. The women—and their pay packages—featured in this year’s study can be found in the table below.

Communication Services Companies Award Largest Pay Packages

The communication services industry has been home to the highest-paid S&P 500 CEOs for five consecutive years now. The CEOs leading communication services companies earned $24.4 million at the median in 2023. Coming in at second is the consumer defensive industry ($17.7 million), followed by healthcare ($17.3 million). The financial services industry features the most CEOs on this year’s list at 53. Consistent with last year’s trends, the utilities industry had the lowest median total compensation in 2023, amounting to $10.1 million.

Virginia Is the New Home to the Highest-Paid CEOs

After several years at the top, New York was surpassed by Indiana as the state with the largest S&P 500 CEO pay packages in 2022. In 2023, Virginia overtook Indiana to lead the list of states home to at least five S&P 500 CEOs. CEOs in Virginia received a median pay package of $21.9 million, while Michigan ranked second with $19.6 million, and New York followed with $19.5 million.

California had the highest number of S&P 500 CEOs in 2023, maintaining its count at 47 from the previous year. New York ranked second with 33, followed by Texas with 28. Illinois (26) and Massachusetts (17) rounded out the top five.

*Total compensation includes information disclosed in company proxy statements including salary, bonus, stock and options valued at grant date, above market earnings on deferred compensation, and other compensation (including benefits and perks).

Sr. Director of Content & Communications at Equilar

Amit Batish, Senior Director, Content & Communications at Equilar, authored this post. Courtney Yu, Director of Research, conducted the data and analysis for this study. Please contact Amit Batish at [email protected] for more information or commentary on Equilar research and data analysis.

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The Venezuelan migrant  accused of shooting two  NYPD cops during the early hours of Monday morning crossed into the US illegally last year, but the case against him has already been dismissed, The Post can exclusively reveal.

Bernardo Castro Mata, 19 — who shot one officer in the chest and another in the leg after they attempted to stop his moped in Queens — had a hearing in Chicago on May 6 where an immigration judge closed his case, according to ICE sources.

The information emerged less than 24 hours after The Post exposed the Biden administration’s dismissal of asylum cases and deportation orders against 350,000 migrants because they didn’t have criminal records or aren’t deemed national security threats.

Those migrants are also under no obligation to leave the country and are no longer monitored by Immigration and Customs Enforcement [ICE] — making them undocumented.

“The Biden administration is allowing foreigners to violate our immigration laws at every possible opportunity, with no finality, no real resolution of their cases.

“This is just the latest example proving that the government does not have the capacity to adequately vet large numbers of people randomly pouring across our borders,” former ICE chief of staff Jon Feere, who is now at the Center for Immigration Studies, told The Post.

Mata illegally crossed the border into Eagle Pass, Texas, where he was caught and arrested but later released in July 2023.

The Venezuelan national failed to provide an address to authorities, which assigned him an immigration court in Chicago for proceedings, according to an ICE source.

ICE didn’t respond to The Post when reached for comment about Mata’s case.

The sweeping closing of cases by the Biden admin means the migrants are not granted or denied asylum but their case is removed from immigration courts altogether.

Once cases are closed, the subject is no longer in “removal proceedings” to deport them, which is the government’s default position for all migrants admitted at the border.

Such migrants can’t apply for benefits, financial aid, a work permit or vote in elections, immigration lawyers have told The Post. However, once a case is terminated they can reapply for asylum or seek other forms of legal status in the US.

A 2022 memo issued by ICE’s principal legal adviser, Kerry Doyle, and seen by The Post instructed prosecutors at the agency to permit case terminations for migrants who aren’t deemed  national security threats .

Meanwhile, President Joe Biden is poised to issue an executive order to close the southern border once the number of migrant crossings reaches a certain number per day, of either 2,500 or 4,000 according to sources .

Federal authorities recorded a daily average of 5,990 crossings in April, excluding “gotaways” who sneaked over the border and into the US, escaping apprehension.

Feere, however, said the order is too late and the damage to Americans’ safety has already been done.

“The Biden administration doesn’t seem to care much about the fallout from their open border policies, with their apparent goal of trying to legitimize this chaos through executive order.

“If they wanted less illegal immigration and fewer problematic people coming here, they’d be increasing deportations and invoking harsh penalties on foreigners who game the system.

“Instead, they continue to welcome the lawlessness and the subsequent harm to American society,” Feere said.

In addition to allegedly shooting the two NYPD officers, Mata is suspected of helping to attack two women — one of whom was slugged in the face — during a pair of snatch-and-grab robberies days before, police and sources said.

“The patterns that we’re looking at currently in Queens that he’s involved with involve phone snatches and instances where a woman was attacked, her credit card was stolen and eventually used in a Queens smoke shop,’’ NYPD Chief of Detectives Joseph Kenny told reporters after Monday’s police shooting.

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New on Netflix in June 2024: Every movie and TV series landing this month

June is going to be a very busy month for Netflix .

Alongside returning shows, including the final season of Sweet Tooth and the concluding part of Bridgerton season three, there will be a bunch of new films, including the Nicole Kidman and Zac Efron action-comedy A Family Affair .

There will also be the addition of Richard Linklater’s acclaimed Hit Man , following its theatrical release. The film stars Glen Powell and Adria Arjona.

Meanwhile, licenced acquisitions include Bodies Bodies Bodies and The End We Start From , which stars Jodie Comer.

Below is the full list of every movie and TV show being added to Netflix in June 2024. Find the list of everything being removed here .

NB: The Independent put this list together with help from What’s on Netflix .

ORIGINAL TITLES

My Next Guest Needs No Introduction with David Letterman season five – UK/US

Kübra season two – UK/US

Sweet Tooth season three – UK/US

Hierarchy – UK/US

Perfect Match season two – UK/US

King of Collectibles: The Golden Touch season two – UK/US

Bridgerton season three – part two – UK/US

Doctor Climax season one – UK/US

Joko Anwar’s Nightmares and Daydreams season one – UK/US

Miss Night and Day season one – UK/US

Agents of Mystery season one – UK/US

Gangs of Galicia season one – UK/US

The Victim’s Game season two – UK/US

Supacell season one – UK/US

That ‘90s Show season two – part one – UK/US

Kota Factory season three – UK/US

The Mole season two – UK/US

Oloture: The Journey season one – UK/US

Owning Manhattan season one – UK/US

Savage Beauty season two – UK/US

Too Old for Fairy Tales 2 – UK/US

The Price of Nonna’s Inheritance – UK/US

How to Rob a Bank – UK/US

Under Paris – UK/US

Basma – UK/US

Hit Man – UK/US

Ultraman: Rising – UK/US

Inheritance – UK/US

Kleks Academy – UK/US

Trigger Warning – UK/US

Drawing Closer – UK/US

A Family Affair – UK/US

Documentary

Hitler and the Nazis: Evil on Trial – UK/US

Nelma Kodama: The Queen of Dirty Money – UK/US

Rafa Marquez: El Capitan – UK/US

Tour De France: Unchained season two – UK/US

Mysteries of the Terracotta Warriors – UK/US

Outstanding: A Comedy Revolution – UK/US

Black Barbie – UK/US

The Accidental Twins – UK/US

America’s Sweethearts: Dallas Cowboys Cheerleaders – UK/US

Kaulitz & Kaulitz – UK/US

Worst Roommate Ever season two – UK/US

Jo Koy: Live from Brooklyn – UK/US

Keith Robinson: Different Strokes – UK/US

Baki Hanma VS Kengan Ashura – UK/US

Rising Impact season one – part one – UK/US

Little Baby Bum: Music Time season two – UK/US

LEGO: Ninjago: Dragons Rising season two – part two – UK/US

Unicorn Academy chapter two – UK/US

LICENCED TITLES

Heartland season 16 – US

Killing Eve season three – UK

New Amsterdam – UK

Scavengers Reign – UK

Young Sheldon season six – UK

Taskmaster series 14 – UK

How I Met Your Mother season one to nine – US

Anti-Hero season one – UK/US

Ride on Time – US

Big Boys – UK

Forged in Fire season 14 – US

Cold Case Files season three – US

Dexter season one to eight – US

The Thin Red Line – UK

Hoarders season 14 – US

Alone season 10 – US

NCIS season 16 and 17 – US

Allegiant – US

Baby Boy – US

The Breakfast Club – US

Cold Copy – UK/US

The Conjuring – US

The Conjuring 2 – US

The Conjuring: The Devil Made Me Do It – US

The Devil’s Own – US

Divergent – US

Dune (1984) – US

Flushed Away – US

Godzilla Minus One – UK/US

Insurgent – US

Janky Promoters – US

Kicking & Screaming (2005) – US

Land of the Lost –US

The LEGO Movie – US

Lumberjack the Monster – UK/US

A Million Ways to Die in the West –US

National Security – US

On the Basis of Sex – US

Pilecki’s Report – UK/US

Pokémon: Detective Pikachu – US

The Pretty One – UK

Strawberry Shortcake’s Summer Vacation – US

Tangerine – US

Two Can Play at That Game – US

300: Rise of an Empire – US

Crazy Rich Asians – US

Bodies Bodies Bodies – UK

Wonder – US

Abang Adik – US

Fifty Shades of Grey – US

The End We Start From – UK

The LEGO Batman Movie – US

Aftersun – US

30 for 30: Once Brothers – US

The Footballer, His Wife, and the Crash – UK

30 for 30: Lance – US

30 for 30: The Good, The Bad, The Hungry – US

30 for 30: The Life and Trials of Oscar Pistorius – US

Remembering Gene Wilder – UK/US

30 for 30: June 17th, 1984 – US

Black Clover season three – UK/US

LEGO Friends season two – US

Little Angel volume five – US

The Smurfs season two – US

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