Brand Loyalty and Consumer Behavior in Streaming Services: A

Case Study of Netflix's Marketing and Engagement Strategies

Yuting Wen

Department of Psychology, University of Toronto, Toronto, M5S 1J4, Canada

Keywords: Brand Loyalty, Consumer Behavior, Netflix, Streaming Services, Data-Driven Personalization.

Abstract: With the popularity of the Internet and the continuous evolution of consumer behavior, Netflix has become a

leader in the media and entertainment industry and has completely changed the traditional way of content

consumption. This paper focuses on Netflix's marketing evolution in data-driven personalization, content

development, and technology integration, and analyzes its impact on consumer behavior and brand

positioning. The research uses models like the Technology Acceptance Model (TAM) and Social Media

Marketing Activation (SMMA) to evaluate its effectiveness in improving user experience and engagement.

The results show that personalized recommendations, localized content, and dynamic pricing strategies are

essential for user loyalty in an increasingly competitive market environment. The study concludes that Netflix

has consolidated its leading position in the streaming market through innovative marketing strategies and

continuous adaptation to global and regional needs. This paper recommends that Netflix further strengthen

localized content development, use electronic word of mouth (eWOM) to strengthen brand communication,

and introduce flexible pricing models to maintain growth and expand market share.

1 INTRODUCTION

Netflix remains a dominance force and has

significantly changed the media and entertainment

industry (Xiao, 2023). Analyzing the data, adapting

the content to the viewer, and personalizing the brand

vision–Netflix has changed the nature of marketing

and monetization of entertainment (Yaprak and

Cengiz, 2023 & Haq and Pandjaitan, 2023).

Therefore, understanding how Netflix changed from

DVD rental to one of the leading streaming platforms

is crucial for identifying a shift in the development of

the industry (Oliveira et al., 2023). Thus, there is a

need to identify Netflix’s marketing strategies, the

difficulties arising in the current world, and an

assessment of the marketing strategies for consumer

engagement and its importance in the current market

for changing consumer behavior (Ramasoota and

Kitikamdhorn, 2021). Changes in consumer behavior

that demand streaming services instead of physical

media are taking Netflix from a traditional model of

targeting into a data-oriented model of personalization

and original content production (Kalangi et al., 2023).

For example, Netflix employs the details gathered

from the viewers to suggest TV shows that retain the

viewership (Haq and Pandjaitan, 2023). Given the

increasing competition in the streaming niche, Netflix

employs artificial intelligence and recommendation

systems to strengthen consumer relationships (Xiao,

2023). The evolution of Netflix from a DVD rental

business to a worldwide streaming powerhouse helps

gain competitive advantage and loyalty in an

increasingly crowded market through innovative

marketing approaches, localized content, and data-

driven personalization.

Netflix remains a dominance force and has

significantly changed the media and entertainment

industry (Xiao, 2023 & Yuan, 2023). Analyzing the

data, adapting the content to the viewer, and

personalizing the brand vision–Netflix has changed

the nature of marketing and monetization of

entertainment (Yaprak and Cengiz, 2023 & Haq and

Pandjaitan, 2023). Therefore, understanding how

Netflix changed from DVD rental to one of the leading

streaming platforms is crucial for identifying a shift in

the development of the industry (Oliveira et al., 2023).

Thus, there is a need to identify Netflix’s marketing

strategies, the difficulties arising in the current world,

and an assessment of the marketing strategies for

consumer engagement and its importance in the

current market for changing consumer behavior

(Ramasoota and Kitikamdhorn, 2021). Changes in

consumer behavior that demand streaming services

Wen, Y.

Brand Loyalty and Consumer Behavior in Streaming Services: A Case Study of Netﬂix’s Marketing and Engagement Strategies.

DOI: 10.5220/0014074200004942

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Applied Psychology and Marketing Management (APMM 2025), pages 74-79

ISBN: 978-989-758-791-7

instead of physical media are taking Netflix from a

traditional model of targeting into a data-oriented

model of personalization and original content

production (Kalangi et al., 2023). For example,

Netflix employs the details gathered from the viewers

to suggest TV shows that retain the viewership (Haq

and Pandjaitan, 2023). Given the increasing

competition in the streaming niche, Netflix employs

artificial intelligence and recommendation systems to

strengthen consumer relationships (Xiao, 2023). The

evolution of Netflix from a DVD rental business to a

worldwide streaming powerhouse helps gain

competitive advantage and loyalty in an increasingly

crowded market through innovative marketing

approaches, localized content, and data-driven

personalization.

2 BRAND INTRODUCTION

When technology advancements grew a notch higher,

Netflix upgraded from discs to streaming services,

moving internationally and giving clients on-demand

subscription services (Oliveira et al., 2023). This

change transformed its entire model from rental stores

of DVDs to streaming services, bringing a new shift

in how consumers enjoy entertainment. In today's

society, these brand values are highly valued to

establish a new culture of streaming movies and

series. Due to the intense focus on consumer

experience, Netflix is correctly positioned as the

video streaming service of choice in the global market

(Xiao, 2023). Netflix has developed a set of

recommendations since data analytics forecasts

customers' preferences, enhances the cinematic

experience, and keeps consumers hooked.

Netflix also adopted another strategy of informing

the public that they produce original TV shows and

movies that cannot be found on any other streaming

platform. That also involved developing its original

comedy shows, crucial in establishing its place in the

market as the leading streaming service provider.

Netflix has over 200 million subscribers globally,

proving the remarkable effectiveness of its strategic

brand positioning (Yuan, 2023). Generating

exclusive content also helps solidify the brand's

position in the entertainment market.

However, Netflix has experienced tremendous

growth, which has been challenging. The entrance of

other players into the sector, the production of

competitors like Amazon Prime Video and Disney +,

among others, and the high costs of funding original

content have been significant challenges to Netflix.

The company's efforts to strengthen its brand and

create innovations are prerequisites to keep growing.

Netflix has also adopted such technologies as

creating algorithms that can identify the type of

content that may interest a particular client, which has

been helpful to users (Xiao, 2023). Similarly, since

local content can be developed through collaborations

with local artists, the company has a great chance of

reaching audiences in the international market and

being constant (Yun, 2023). It also provides better

insight into consumption patterns and trends to

generate content closer to the viewers ' preferences

(Kalangi et al., 2023). In addition, Netflix has used

artificial intelligence to improve streaming quality

based on the bandwidth available, making it possible

to offer a good experience even in areas with poor

connections (Xiao, 2023). In this regard, Netflix

provides timely services; it remains relevant and

evolves, enhancing the variety of the provided series

and the technologies that can be observed in such

aspects as the interactive narrative or adaptive

streaming quality (Yun, 2023). Such comprehensive

strategies enable it to maintain its market dominance

in the international streaming industry and enhance its

capability to deliver a consistent and personalized

user experience.

3 PROBLEM ANALYSIS

This section examines Netflix's consumer marketing

management through models such as the Technology

Acceptance Model (TAM) and the Social Media

Marketing Activations (SMMA).

3.1 The Technology Acceptance Model

(TAM)

Consumers adopting Netflix as a streaming service

can be seen using the technology acceptance model

(TAM). Young consumers' intention to subscribe for

Netflix is influenced by the level of technology

acceptance, price, and electronic word of mouth.

User-perceived factors like ease of use and perceived

usefulness positively affect Netflix subscription

intention. Due to the high integration of technology,

simplicity of the interfaces, and availability of

content, Netflix can directly address and attract

technology-savvy customers who can comfortably

engage themselves in the Netflix platform. Similarly,

intelligent features such as a recommendation system

and dynamic ability to switch the video quality make

it easier for users to use Netflix (Haq and Pandjaitan,

2023). All these features are not only helpful in

Brand Loyalty and Consumer Behavior in Streaming Services: A Case Study of Netﬂix’s Marketing and Engagement Strategies

satisfying the maximized needs and wants of the users

but also crucial for maintaining the growth of the

number of subscribers in the highly saturated market.

3.2 Social Media Marketing

Activations (SMMA)

Netflix has enjoyed the strategic and coherent SMMA

in its marketing communications. As Yaprak and

Cengiz noted, Netflix uses firm-generated content

(FGC) to engage audiences through Instagram,

Twitter, and YouTube accounts. Moreover, these

features are entertaining, engaging, and fashionable;

not only do they help establish consumer trust, but

they are also influential in the choice process within

this company (Yaprak and Cengiz, 2023). Yaprak and

Cengiz also acknowledge that the perceived

customization of content, interaction, and electronic

word-of-mouth (eWOM) positively affects brand

loyalty (Yaprak and Cengiz, 2023). This way, by

involving different marketing content to promote

Netflix, the brand is always relevant to the consumer

because it constantly changes, responds to trendy

trends, and catches the consumer's attention. Also,

through interaction with influencers and paying users,

customer partnerships are established, circulation is

promoted, and brand recognition is strengthened

(Yaprak and Cengiz, 2023). Such efforts go a long

way in helping Netflix to sustain its dominance in the

streaming segment of the market.

3.3 Consumer Behavior Insights

Understanding Netflix's marketing strategies is

essential, and analyzing consumer behavior is vital.

Kalangi et al. state that psychological factors, such as

willingness, attitude, and perception, impact

consumer behavior most significantly (Kalangi et al.,

2023). Yang and Yu point out that streaming services

such as Netflix have changed the status quo and

consumers ' expectations with their characteristics of

digitization, personalization, and accessibility (Yang,

2020). This development strongly points to the need

to use data in personalization, as modern media

consumption, exemplified by Netflix, redesigns itself

to fit the viewer's expectations better.

The lockdown experienced during the recent

pandemic made the consumer seek entertainment

from the comfort of their homes, and Netflix offered

them variety. The detail feature adds a personal touch

to it, and the fact that one can subscribe to the content

at any given time also causes the users to subscribe to

it. Also, Oliveira et al. point out that another factor in

customer satisfaction that encompasses Netflix-based

users in Brazil and Portugal is a combination of

personalized content with specialized series and

movies (Oliveira et al., 2023). Therefore, Netflix can

develop new strategies for the generation of new

content in order to appeal to different viewership and

improve it. It has helped support the subscribers as

more new entrants emerge in the streaming service

provision market.

3.4 Brand Loyalty and Challenges

Netflix has played a vital role in shifting consumer

brand attitudes by being keen to build trust with the

members by offering recommendations. There is a

moderate positive relationship between the perceived

quality of livestream services and brand trust, as well

as the brand loyalty of Netflix users (Yun, 2023).

However, retaining subscribers has been one of the

biggest challenges due to the stiff competition that is

now coming from other domestic and international

streaming services. Namely, competition with local

players in Thailand showed that Netflix needs to

license culturally relevant content to appeal to local

customers (Ramasoota and Kitikamdhorn, 2021). The

constraints within specific markets also present

another problem in those regulations in different

markets, and the peculiarity of these markets presents

Netflix with other challenges that slow its growth.

Furthermore, generating revenues through

subscriptions and licensing its content was one of

many problems; Netflix had even more significant

issues when it came to expansion as it had to discover

how to keep its consumers loyal and continuously

paying throughout the years (Yun, 2023). To avoid

these challenges, Netflix has planned to develop its

products and ally with local players to sustain its

operations and market share.

3.5 Impact of Marketing Strategy on

Brand Positioning

Brand recognition continues to be an essential element

of Netflix's marketing strategy, targeting original

content, individuality, and social media initiatives.

The most critical strategies concerning promotion

campaigns for the brand depend a lot on the products'

availability, diversification, and novelty. By

participating in social media, Netflix has elicited the

participation of the consumer and the creation of

communities that have boosted its image of it. Hence,

by analysing targeted campaigns emphasizing the

target audience's loyalty and belonging, Netflix has

successfully dominated the streaming services market.

In addition, the use of big data and data analytics in

APMM 2025 - International Conference on Applied Psychology and Marketing Management

marketing also ensures that Netflix is marketing and

producing content relevant to various populations of

viewers, thereby enhancing consumer loyalty (Xiao,

2023). Nevertheless, Yun points out that maintaining

user engagement and simultaneously ensuring that

opinion from the side of the critical consumers is

considered remains challenging (Yun, 2023). Its

marketing strategies should change to address the

consumers' concerns and protect a positive brand

image as the market becomes more competitive.

The company also used advertisement and

marketing strategies based on data analysis, which

complements Netflix's customer experience. Through

constant monitoring, Netflix is aware of user

information that can help adjust the promotional

aspect to attract users with specific requirements to

tighten the promotion further. Soldo and Schagerl

opine that increasing interaction can be achieved by

optimizing the marketing strategy to harmonize with

consumer behavior (Soldo and Schagerl, 2023). Short-

term campaigns that advertise and advocate trending

topics are helpful in societies in developing

excitement, whereas long-term campaigns assist in

developing brand identity. The other aspect of

Netflix's marketing is the follow-up e-mails and

notifications that encourage users to engage more, for

instance, by recommending new episodes or

suggesting coming back to the show, which was

paused halfway through a series. These methods help

Netflix to remain strategic and sustainable, thus

improving brand loyalty as more competitors appear.

This short- and long-term approach helps Netflix

effectively meet its goal of maintaining its dominance

in the streaming market, coupled with the desire to

ensure people's constant engagement.

3.6 Global Expansion and Market

Adaptation

An important driver that has given Netflix a

significant boost in its success is the expansion of the

international market. In Netflix marketing and price

adaptation, Ramasoota and Kitikamdhorn also

acknowledge Netflix as an organization that has

received very positive experience in the marketing

and adaptation of prices in various countries and

markets (Ramasoota and Kitikamdhorn, 2021). For

instance, Netflix emulated flexible pricing structures

that depended on consumer segments in Thailand,

where it has been challenging to outcompete local

players. Also, some measures, including content

delivery networks, have been employed by Netflix to

enable streaming pictures at the high end in all parts

of the world. Yun points out that an indication of the

enhancement of service delivery is also evidenced by

the increase in partnership with local internet service

providers, which allows users to make Netflix their

preferred streaming platform regardless of their

geographical location (Yun, 2023). Additionally,

Netflix's interest in regional content and the

availability of programs that may be more suitable for

cultures have also improved its functioning and

communication with consumer audiences in various

global regions.

A similar approach can also be seen in Netflix's

globalization strategy, achieved through content

partnerships with regional players. Such partnerships

allow Netflix to develop more content that might fit a

specific culture in a particular region, more so within

a given country. Thus, Netflix ensures its content

meets the culture of the viewership, making it more

appealing or, in this case, uncontested by viewers.

Soldo and Schagerl claim that the consideration of

culture is crucial to marketing, and it is an area that

Netflix has leveraged to boost user experience (Soldo

and Schagerl, 2023). Moreover, to capture new

subscribers, the company has embraced promos and

localized advertising as its approach to marketing. It

helps Netflix provide services in competing

international markets as quickly as possible. Besides

increasing subscription rates, this strategy is

profitable for Netflix in terms of brand recognition

and its general control over the global streaming

service market share.

4 RECOMMENDATIONS

Based on the analysis above, several

recommendations can be made to enhance Netflix’s

consumer marketing strategies:

4.1 Promotion of Local Content

Production

To become more persuasive in local markets, Netflix

must consider buying more localized content.

Research in the Brazilian and Portuguese

environments support that localized content increases

consumer satisfaction and brand loyalty (Oliveira et

al., 2023). That will help Netflix's business since

consumers understand content consumed from

within. Sharing localized content helps eradicate the

cultural difficulties that make it hard to decipher the

messages passed through the stories depicted.

Besides, working with local talent can add more

authenticity to the content, which the audience values.

It helps enhance the satisfaction of the viewers and

Brand Loyalty and Consumer Behavior in Streaming Services: A Case Study of Netﬂix’s Marketing and Engagement Strategies

increases the click-through rates. In addition,

investment in culturally resonant programming

holding tends to raise an ardent audience for Netflix

to foster its market monopoly as it endeavors to

expand in its sphere of business jurisdiction.

4.2 Increased Engagement with

Customers via eWOM

Netflix must encourage eWOM by encouraging

people to share their experiences watching shows and

movies. As eWOM plays a significant role in

subscription decisions, users can be encouraged to

post positive experiences to promote subscriptions

and ensure brand loyalty (Haq and Pandjaitan, 2023).

Therefore, Netflix can spread its popularity due to the

activation function when users invite friends and

relatives to use the service for a particular discount or

access some materials. It also helped ensure its users

were loyal to the show and simultaneously developed

a communal viewing. Incorporating user testimonials

within social sites could also increase the site's overall

authority, and thus, promoting the platform would

lead to higher interaction rates. Positive eWOM will

maintain Netflix's existing subscribers and attract

new customers in the highly competitive market.

4.3 Flexible Subscription Pricing

Another advantage that can be derived from

introducing more flexible pricing policies that meet

different consumer segments can be effective in

Thailand, which is highly competitive. Subscriptions

can be offered at lower prices, meaning more

consumers are willing or able to pay for a subscription.

Specially, premium subscriptions can have expensive

materials that consumers are willing to pay for

(Oliveira et al., 2023). Netflix will be able to serve the

public since only some have the same amount of cash

to spend. A few active options include purchasing

subscription packages for a limited time or

subscribing to multiple packages in a single period,

increasing the chance of more user engagement. By

providing customers with choices within their ability

to afford, Netflix can acquire even more subscribers

and, therefore, extend its customer base, enabling it to

compete with other companies in developed and

growing markets.

4.4 Marketing Communication for

Specific Trade

Marketing communication will assist in an increase in

the level of engagement by targeting potential

consumers and using the data collected to come up

with more specific and relevant marketing strategies

(Xiao, 2023). Thus, messages that could be

interpreted as aligning with viewer’s interests will

further the narrative that Netflix wants to portray of

them as a user-oriented streaming service platform.

5 CONCLUSION

The paper's theme is centered on how Netflix has

changed the face of the media and entertainment

industry through newly created marketing strategies,

not excluding the ''customer comes first'' approach to

content. As such, it can be concluded that Netflix has

been using data analytics, recommenders, and data

miners to deliver an engaging experience to the

viewers. Adapting the business model based on

physical media to the more data-oriented streaming

allowed the company to maintain its competitive

advantage internationally. Moreover, Netflix has also

widened its audience and customer base by creating

more original and local productions. Thus, it is the

company that offers the ultimate streaming services

that correspond to the development of technologies

and demands of the audience.

The proposed recommendations require more

focus on local content creation, dynamic pricing

tactics, and mechanisms like eWOM comprising

extensive consumer contact. Real-life examples

support the potential use of personalization and

regional adaptation to keep people loyal to Netflix

and grow its market share. Thus, the research calls for

organizations to continuously innovate their products

and expressly devise strategies to address consumers

for enhanced market share amidst competition. The

analysis of the evolution of Netflix is a clear example

of how learning the customer and adapting to change

creates a strong foundation for success in the internet

economy for any other business-oriented individual

to follow.

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Brand Loyalty and Consumer Behavior in Streaming Services: A Case Study of Netﬂix’s Marketing and Engagement Strategies