Netflix Segmentation, Targeting and Positioning

By John Dudovskiy
September 20, 2023

Netflix segmentation, targeting and positioning efforts are the basis of marketing strategy. Segmentation implies dividing the market into different groups on the basis of common traits and characteristics. The entertainment services provider segments its market on the basis of location, demography, behaviour, psychographic and other variables.

Netflix Segmentation, Targeting and Positioning

Netflix uses the following positioning techniques:

1. Anticipatory positioning. When Netflix pioneered on-demand streaming of films, series and documentaries for a fixed monthly cost in 2007, the demand for such a service initially was low to non-existent. However, then CEO Reed Hastings and his team anticipated the demand for such a service and went ahead with the idea to see the demand gradually growing in the following years.

2. Mono-segment positioning. The largest streaming service in the world targets a single customer segment that is outward-looking, affluent consumers with international credit cards and smartphones.

The following table 2 illustrates Netflix segmentation, targeting and positioning:

Type of segmentation Segmentation criteria Netflix target customer segment




Region Available virtually everywhere except in China and Russia
Density Urban/rural


Age Shows available for all age groups
Gender Males & Females
Life-cycle stage Bachelor Stage young, single people not living at home

Newly Married Couples young, no children

Full Nest I youngest child under six

Full Nest II youngest child six or over

Full Nest III older married couples with dependent children

Empty Nest I older married couples, no children living with them

Empty Nest II older married couples, retired, no children living at home

Solitary Survivor I in labour force

Solitary Survivor II retired

Occupation Students, employees, professionals, senior manager, executives
Behavioral Degree of loyalty ‘Hard core loyals’ and ‘Switchers’
Benefits sought Recreation & Inspiration
Personality Easygoing, determined, ambitious
User status non-users, potential users, first-time users, regular users, or ex-users of the streaming service
Psychographic Social class  Working class, middle class and upper class
Lifestyle[1] Resigned, Mainstreamer, Aspirer, Succeeder, Explorer, Reformer
Risk aversion Risk avoiding,  Risk neutral, Risk loving

Netflix segmentation, targeting and positioning


Netflix Inc. Report contains the above analysis of Netflix segmentation, targeting and positioning and Netflix marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Netflix. Moreover, the report contains analyses of Netflix leadership, organizational structure and organizational culture. The report also comprises discussions of Netflix business strategy, ecosystem and addresses issues of corporate social responsibility.

Netflix Inc. Report

[1]According to Cross Cultural Consumer Characterization by Young & Rubican