Data Lessons SaaS Businesses Can Learn From Netflix

While many SVODs (Subscription Video on Demand) spend countless dollars on marketing and content library building, new data sheds light on what entertainment-seekers truly care about
collecting data as an SaaS such as streaming services Netflix and Disney+
Tamir Roter
Tamir Roter | VP EMEA & APAC

Netflix, Disney +, Hulu, and a long list of entertainment on-demand streaming services are built on a subscription-based business model. The number one goal as with SaaS products is to register and maintain as many subscriptions as possible.

But what leads to that original registration? Is it an expensive advertisement? The size of a streaming service’s video library? Or maybe it is the sheer variety of entertainment options available?

Data has the answer. A recent survey by Hub Entertainment Research shows that none of the above have a major impact on subscriptions.

Here are the report’s key stats and takeaways:


When it comes to signing up for a service, 34% of consumers choose to subscribe to a streaming service on the basis of one tv show that they want to watch. This means that SVODs may be better off focusing on creating a smaller amount of high-quality content than a larger number of mediocre series and movies.

What can SaaS businesses learn?

Software company’s main takeaway here should be that focusing on a smaller number of products and features which are of a higher quality and provide more value to users is preferable and should be based on data collected regarding consumer trends, and interests.


In terms of maintaining subscribers, 74% of people that sign up to one particular series that interests them will stick with the service long-term if they make it through that entire first series.
Meaning that once you follow through on your value promise to customers on one product or service, you are likely to gain a ‘customer for life’. Additionally, 74% of users finished watching an entire tv series after finishing the first episode, even if the show had multiple seasons.

What can SaaS businesses learn?

The value of a good quality hook should never be underestimated whether it is a tv show, (POCs), or product sample. Many SaaS businesses offer free trials of their products or a free version with the hope that once value is perceived, users will upgrade to paid versions. These insights prove how important first points of contact truly are and that companies should invest resources in collecting data, such as competitive advertising, which can help you identify which hooks are currently working best in your industry.


As far as promotion goes, 33% of people who maintain a streaming membership were referred to the service by a friend. Whereas 12% of respondents heard about their streaming service through an advertisement.

What can SaaS businesses learn?

Word of mouth is your most powerful marketing tool when trying to sign up new users for your software or entertainment service. That is why you should consider investing more in User Experience (UX) that will have a strong impact on users. You should also focus on paid promotion with ‘organic potential’ such as influencer marketing, getting reviews from bloggers with a strong following, or user feedback and reviews via social and review sites. You should also collect data directly from search engines and social networks to keep track of consumer interest.

The bottom line

SaaS businesses have a lot to learn from other service/subscription-based businesses such as the on-demand entertainment industry. Some of the key takeaways for SaaS businesses include:

  • Registration – Focus on lower volume, higher quality products and features based on data collected regarding consumer trends, and interests.
  • Retention – Retention is driven by a positive first experience so heavily invest resources in POCs and free trials based on industry data showing what works best for competitors.
  • Advertising – Organic referrals are the biggest drivers of new conversions which is why excellent UX will translate into enthusiastic users and the type of word of mouth paid promotion can never achieve. Collect data directly from search engines and social networks to keep track of consumer interest.
Tamir Roter
Tamir Roter | VP EMEA & APAC

Tamir is a software business executive with a track record of successfully driving international corporate growth and profitability with large enterprises as well as start-ups. Over the course of 20+ years, he has been building and managing sales, marketing and regional teams. Tamir currently works as a VP at Bright Data, the leading global web data collection network.