Netflix Kids Strategy Offers Lessons on Customer Understanding for Businesses
Netflix is expanding its kids and family business beyond streaming. This development offers businesses lessons in redefining customers, products, and growth.
Netflix has significantly expanded its offering for children and families, providing valuable lessons for businesses on understanding their customer base and business models. While the streaming giant is best known for its adult content, children's programming now accounts for 15% of its total viewing hours.
The increasing consumption of kids and family content underscores Netflix's strategy to attract and retain entire households through the platform. Children's shows, such as the popular Gabby’s Dollhouse and Sesame Street, serve as an entry point for new subscribers and keep existing customers engaged.
The company is expanding this relationship through new series and productions. In addition to new titles like Puppy Pirates, established favorites like Gabby’s Dollhouse are being extended with companion series. Netflix is also deepening its partnership with Sesame Street by developing a film and continuing to produce new episodes.
Netflix's approach emphasizes the importance of two key business principles: do not define your customer too narrowly, and do not limit your product to its original form. This diversification strategy can help businesses identify new growth opportunities and strengthen customer loyalty.