Netflix’s cross-platform delivery strategy, including DVD-by-mail and streaming video to both desktop and mobile devices, is driving increased profits, lower customer churn and reducing acquisition costs for new customers.
Netflix grew by 1.7 million subscribers in the first quarter of 2010, driving profits for the company up 25 percent over Q1 2009. According to Ryan Lawler at NewTeeVee.com, the company’s improved performance can be attributed to their pay-once, get multiple platforms subscription model.
Media companies with a print significant subscriber base should look at Netflix’s approach. Their pricing structure, from $9 to $24 per month is based on home delivery of DVD movies, which also includes unlimited movie streams on any device they support, including the iPad and the Xbox360, PlayStation3 and Wii gaming systems, among many others.