How Netflix applied business stoicism to grab the Brazilian streaming market…

“The impediment to action advances action. What stands in the way becomes the way.”

Marcus Aurelius

In 2011, the lure of owning the Brazilian market must’ve been enticing to Netflix. For good or bad, Brazil is the beating heart of South America’s economy. It’s an enormous country that sets the trends for a whole continent. Brazil also has a huge smartphone penetration, along with a love of T.V. dramas – every night, about 42 million people watch a drama from ‘Globo’ a conglomerate of media companies that controls the market.

From the outside, it looks like a market ripe for streaming disruption. So the strategic decision was made – Netflix wanted to grab Brazil before another service could get there.

But often, as the old military saying goes, the map doesn’t match the territory. What appears to be from the outside isn’t always the reality once you start delving a little deeper.

Very quickly, Netflix found itself encountering problems. (This brilliant article does a great job outlining them.)

Skepticism

Local audiences at first met the company with skepticism, bafflement, or indifference. Few people were signing up, and those who did were hardly watching. The problems started unravelling very quickly. Brazil in 2011 had poor quality internet, even in the big cities. Mobile signals were at best 3G and plans throttled customer for streaming over their low data limits. The infrastructure was poor.

At the same time, people didn’t have the hardware in their homes to stream. Modern T.V.s with wireless connectivity were a luxury, and thus most families who did watch Netflix, did so on poor quality laptop screens.

And to compound matters, Brazilian young people, the very cohort who were crying out for the service, tended not to have credit cards to pay for it. Those who did have credit cards were often reluctant to hand over their information to a company they didn’t know.

Brazil had become a strategic quagmire. A black mark on Netflix’s rapid global expansion. Something had to be done.

Barriers

In his brilliant book on stoicism ‘The Obstacle Is The Way’, Ryan Holiday describes the power of seeing barriers and problems as opportunities. Mixing the teachings of Roman emperor Marcus Aurelius with modern business, leadership and war stories, Holiday outlines how blessings and burdens are not mutually exclusive, how our perception is often the thing that’s holding us back, and how great men and women see impediments as chances to grow rather than the end of the road.

By focusing exclusively on what’s within our power, seeing things through a different lens and understanding that every scenario is potentially malleable, we start to realise that problems are rarely as bad as we think. Or rather, they’re exactly as bad as we think. 

Many people perceive stoicism to be a rigid, pessimistic outlook on life. Holiday makes the case that it’s actually the opposite. It’s infinitely elastic. It provides us with the opportunity to evolve when something goes wrong.

And that’s what Netflix did.

Practical

They weren’t discouraged that their efforts were being hampered by factors seemingly beyond their control. They didn’t give in and waste the billions of dollars that had already gone into the Brazilian experiment.

They accepted, adapted, ‘controlled the controllables’. They saw what many companies would see as a huge negative as an opportunity.

To improve connectivity, Netflix invested in web servers around the country, and teamed up with telecommunications giants such as Telefónica, which were in the process of introducing high-speed broadband nationwide. Netflix supplied the companies with additional servers at no charge, meaning they got what they wanted, the telcos got an opportunity to offer the service to their customers, and of course Netflix got to piggyback on existing relationships.

To fix the hardware problem, Netflix took another partnership approach, this time with Asian consumer electronics manufacturers, offering them a great opportunity to sell more smart TVs in Brazil. Of course, this too was win-win, as Netflix came bundled on all new T.V.s sold, another ‘growth hack’ for the brand.

To fix the credit card issue, the service began for the first time to accept alternate forms of remittance. They began taking debit cards, payments via Apple’s iTunes, even phone credit as monthly billing.

And to fix the trust issue, the brand started to legitimise itself by buying T.V. advertising airtime. Another first for Netflix, which had previously focused only on digital, P.R. and inbound marketing.

The results have been predictably astounding. Brazil has become Netflix’s largest market outside the English-speaking world. Analysts estimate it has 4 million to 5 million subscribers in the country, trailing only the U.S. and U.K.

By practising a company wide policy of stoicism and being practical and solution focused in the face of huge obstacles Netflix broke new ground for streaming and cornered the Brazilian market.

They retained perspective in the face of adversity.

What stands in the way becomes the way.

 

 

 

 

Moving on…

A New Year brings new opportunities and change, and my 2017 is bringing both early on!

Tomorrow I start a new short term role heading up marketing for Mediacon Global Entertainment Summit, as we work towards the May event in Dublin. I’m incredibly excited.

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Of course, it’s tough to leave a place that you love. I’ve been lucky enough to have worked at Target McConnells for four years. In that time, I’ve worked on winning pitches for some huge brands like Aer Lingus, Topaz, HSE, Citroen and some brilliant award winning work for Vodafone (particularly Centre Stage and rugby sponsorships) and An Post. I’ve learned a huge amount from some great people.

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I’ve also made many good friends, people that I’ll be spending plenty of time with over the coming years, and drinking plenty of coffee/pints with too. I’ll certainly miss the camaraderie and diversity of agency life. I’m not afraid to admit that there were one or two tears shed on Friday night! (Drunken tears albeit, but still…)

But for the past six months or so, in the back of my head I’ve been thinking about a change. I feel like I want to go back to experience life in a smaller startup company, and the chance to join Stephen, Lesley and the team to build a ‘Web Summit for media’ and to grow a conference brand that positions Ireland as a world leader in media and entertainment proved too interesting to turn down. It’s a hugely exciting industry to be in.

No growth comes from being inside your comfort zone, and this challenge will give me a chance to improve and test my skills.

I’ll be there for at least 6 months. After that, If anyone has a need for a strategic, creative, analytical marketer with a penchant for sports, media, sponsorship and food then please get in touch via shaneoleary1@gmail.com.

For now, it’s time for change.

Onwards and upwards!

 

 

 

 

The weird trick I use to improve my concentration and bring on a ‘flow’ state


One of my resolutions this year is to spend less time procrastinating and more time writing. But it’s hard when distractions are so prevalent. Like pings from social media, the lure of having multiple browsing tabs open and the difficult of clearing your head to concentrate on a complicated topic.

I find that writing, once I get into it, puts me into a ‘flow’ state. If you’re not familiar with the term ‘flow’, it refers to that feeling when you’re performing optimally, full of energy and focus. The endorphins are flowing, you’re in the moment and not distracted by anything else.

Personally, when I reach that stage, often it can result in two or more hours passing by, and I’ll be still locked into whatever I’m writing, completely unaware of what’s going on around me.


It’s a term coined by writer Mihaly Csikszentmihalyi (yes, I did copy and paste his name!) and his thinking is that everyone has some, or a few activities that get them to this stage. My goal for 2017 is to do more of one of the things that gets me there.

Lucid

But for the past year or two, it’s taken longer and longer for me to really reach that stage of full, lucid concentration. Meditation has helped certainly, and my focus is much better after a few days of repetitive Headspace usage.

But luckily, I’ve recently found something else that helps immensely too.

In fact, I’d go as far as to say it has had a pretty big impact on my daily productivity.

I’ve always been someone who has needed silence to fully concentrate. In an open plan office, or indeed any kind of office with more than one person, this is a rarity.

Over Christmas, while listening back to a Tim Ferriss podcast with WordPress founder Matt Mullenweg, they discussed tactics to bring on flow and optimise your mental state. The whole episode is great, but one part of the conversation turned to ‘repetitive music’ – listening to the same song over and over on repeat. Both had the same experience of it being incredibly powerful.

After a bit of searching, I came across other people who had felt the same thing too. In the book ‘Daily Rituals’, which examines the daily routines of some of the greatest creatives that have ever lived, silence and repetitive music are both mentioned a few times. Authors Michael Lewis and Ryan Holiday have written about it too:

“I think melodic music, played on repeat, puts you in a heightened emotional state–while simultaneously dulling your awareness to most of your surroundings. It puts you in a creative zone.”

So I decided to try it over Christmas when writing out a few blogs and thoughts. And, whether confirmation bias, the placebo effect or something else, it really, really works.

Minimal

I began listening to repetitive instrumental music that looped for hours, or songs with minimal lyrics. Previously, I had listened to Spotify playlists with a mix of everything while trying to work, and found myself trying to decipher lyrics rather than fully concentrate. But for a track like The XX below, there’s nothing to get caught up on except the background melody.


My focus has improved immeasurably. It stops my brain from hearing other noises and getting distracted.

Of course, the work has to be interesting and challenging, but then, working in marketing, it usually is. With writing, I very quickly start to feel like I’m enjoying what I’m doing, and even when I flick the tab to do research I’m still engaged. Previously I ran the risk of wasting a few minutes brainlessly perusing a social account.

It’s probably the same reason why people use white noise generators to block out outside sounds and help them sleep –  it allows your brain to background the sound, but still blocks out any other noise. It provides providing some structured sound to concentrate on and forget about.

So that’s it! A really simple, but for me, incredibly effective way to get into the zone quicker and be more productive in 2017. And isn’t that what we’re all looking for?

I’m sure this won’t work for everyone, but I’d love to hear your experience if you try it out.

Oh, and this site is a god send too for repeating YouTube tracks automatically. 1 hour looped versions of instrumental tracks are quite difficult to find for some reason!