Brand transformation lessons from streaming brands

Chris Prescher, chief strategy officer at global brand consultancy 50,000feet, discusses the entertainment streaming industry, and offers important lessons brand designers can learn from it.

Businesses love to talk about brand transformation, but what does it mean exactly, and how does an organisation achieve it? For answers, marketers should examine the evolution of the entertainment streaming industry, which includes familiar names like Netflix and up-and-coming free ad-supported streaming TV (FAST) brands such as Tubi. The successes and mistakes of streaming businesses demonstrate how a company can fundamentally change the way people perceive a brand and interact with a brand, which is the essence of brand transformation. Here are five lessons:

1. Brand transformation is a continuous process

Businesses don’t transform their brands overnight. Instead, they undergo a continuous evolution. Netflix, for example, dramatically evolved from a DVD library to a content-creating studio, but this transformation took years. Now, Netflix and rivals such as Disney+, Prime Video and Apple TV+ are gradually transforming themselves in substantial ways, notably through the adoption of advertising and branding syncs. They experiment with different formats, such as Netflix partnering with brands like Coca-Cola to incorporate shows into everyday products, further weaving Netflix into popular culture.

Virtually every streaming platform is also gradually adopting live sports, whether through deals with major sports leagues or by creating their own sports content. NBC’s Peacock streaming business created shockwaves by airing the first-ever NFL playoff game exclusively as a streaming experience, suddenly making little-known Peacock synonymous with sports. Similarly, Amazon’s relationship with the NFL continues to shift its parent brand’s perception from its retailing roots.

2. Embrace risk

Brand transformation is inherently disruptive, asking your audience to interact with your brand differently. Lego famously did this by creating interactive content to extend and broaden the concept of playing with a toy online.

Streaming businesses continue to innovate with audience interactivity. Netflix, for example, introduced binge-watching. Who had heard of such a thing? Binge-watching shattered the assumption that studios should expect audiences to wait week after week for the next episode. Then Netflix invited viewers to choose their own plotlines through the interactive ‘Black Mirror: Bandersnatch.’ These experiences created curiosity and excitement around Netflix content.

Amazon also takes calculated risks with live sports. For example, Amazon and the NFL aired the first-ever Black Friday football game, potentially encouraging people to watch football rather than shop on the biggest retailing day of the year. Amazon infused the Black Friday experience with shoppable advertising and interactive experiences that fuse sports and commerce. Ratings for the inaugural Black Friday game in 2023 exceeded expectations, and Amazon enjoyed huge Black Friday sales.

3. Learn from mistakes

Brand transformation is an imperfect process, and streaming companies have made some significant missteps. Remember when Netflix tried to split its services into a streaming and DVD business with Qwikster? Customers were confused and angry. Netflix admitted its mistake and shut down Qwikster.

Hulu also stumbled by relying too much on a library of licensed shows and movies, which helped the brand achieve early success but then hurt Hulu when competitors launched their own platforms. Hulu adapted and came roaring back with original content such as ‘The Handmaid’s Tale,’ which became wildly popular and highly acclaimed.

Nearly every streaming service is still learning from mistakes they and their parent companies made during the pandemic, when all studios struggled to adapt to the closure of movie theatres. You would think that the closure of theatres would be great for streaming businesses, but studios learned some painful lessons about balancing offline and online content. Audiences became confused about how and where to enjoy new movies. Streaming services are now figuring how in-person movie exhibitions can build anticipation for streaming release dates instead of the two platforms cannibalising each other.

4. Lean into your brand equity

Brand transformation can mean capitalising on your traditional strengths while embracing the new. Disney+, launched in 2019, has ascended rapidly by tapping into Disney’s enormous brand equity. This includes Disney’s ownership of Marvel, which has created a firehose of content for Disney+ alongside Disney’s vast library of beloved content and its iconic brand recognition. This approach created a significant advantage in attracting subscribers and evolved Disney+ from its ‘kids-only’ image to a source of popular content for grown-ups, too.

Amazon leveraged its massive brand equity from its eCommerce business to create a synergy with its streaming service, Prime Video. By bundling Prime Video with its popular Prime membership, Amazon attracted millions of subscribers who were already familiar with and loyal to the Amazon brand.

Both Amazon and Disney demonstrate the interplay between legacy businesses and new brands, and Amazon is creating a successful double play of revenue and membership with interconnected operations.

5. What’s next?

Watch the streaming space closely. The principal brands are transforming themselves in intriguing ways, such as their adoption of gaming platforms. Gaming is essential to the burgeoning Gen Z culture. The platform that owns gaming will own the future.