Ted Sarandos of Netflix Gave Sage Advice for Business Owners

Scott Eells/Bloomberg

Scott Eells/Bloomberg

I just watched Ted Sarandos, Chief Content Officer, of Netflix on Bloomberg’s show Bloomberg West.

Ted spoke about the movie industry and how he sees things changing. He said that we all have to agree that consumers want more now. In the movie industry, the theaters are the distribution channel. That puts the DVD sales, and enjoyment of the movie on a mass scale off until after the DVD comes out.

He outlined two models for businesses in the future, which is exactly what Peter Drucker preached 20 years ago: 1) Force consumers to go through hoops to purchase and enjoy the products or services, or 2) Make the business about bringing the products and services to consumers when and where they want it most.

The video isn’t available as it just happened, however, here is an article on Bloomberg from today that explains Ted Sarandos’ plans for Netflix in the next 12 – 24 months.

http://www.bloomberg.com/news/2013-11-04/netflix-s-sarandos-says-video-service-considering-film-projects.html

It’s a very interesting read!

I feel that Mr. Sarandos makes some very sound points. First, in a Global economy, the first company to satisfy the consumer and offer them a distinct advantage over their competitors is the one that will gain the lion’s share of the market.

Look at movie theaters. Why do consumers have to go to the theaters in order to see a new release, and why do we have to wait a month before we can see it in our homes? A well performing movie that brings in 5 million viewers at the box office, will have 25 – 30 million viewers when it drops on DVD. While some movies are amazing in the theater, most will see them at home.

The modern theater is a dinosaur ripe for extinction because of a broken distribution model. If they don’t identify a way to expand their business they, like large booksellers, will soon be out of business.

At the end of the day, for a business to thrive and prosper in this economic climate, with heavy government influence, and global competition, every thing they do must benefit consumers. From product design, manufacturing, service and distribution – a business must be in business to serve consumers first. The money will come as a result in direct proportion to the value you provide.

About Michael Miller

Michael Miller is the owner of Mindwhirl.com, a sales and marketing coaching and training company in Atlanta, Georgia.

Michael’s mission is helping small business owners understand, and organize their marketing so they can make money and grow.

Mindwhirl helps business owners plan and implement effective, profitable marketing campaigns and sales programs.

If you need more sales, we know how to get leads and grow businesses. Call us today at (404) 858-3105, or email me at mmiller@mindwhirl.com.

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