How Streamers Onboard Users: Netflix

Rumors are getting stronger that Netflix is "cracking down" on password sharing, so if you're currently password sharing and don't own the account, you might soon need to go through Netflix's new user experience; where you register your account, and then some more stuff happens, too. It has been covered extensively elsewhere how attractive it is for Netflix to address password sharing, so here instead I will be covering the new user experience.

That new user experience (NUX) is a driver of retention, which in turn is a key metric for subscription businesses like Netflix (see here). It's also an area where product and marketing intersect, a favourite of mine. Plus, it's timely and useful inspiration for the SVOD products that I work on. Therefore, I got curious after the NUX's of Streamers.

How do Streamers onboard new users to the service? What are they trying to accomplish with the NUX? What's in it for them, and what's in it for the subscriber?

So I decided to dive in and sign up for Netflix, and record the experience. In the near future I plan to review more streamer NUX's, but it makes sense to start with the experience of the Streamer that pretty much defined SVOD; Netflix.

Here's the video recording where I sign up for Netflix:

Looking for for a summary? Here goes:

TL;DR

• Time-to-value: about 3 minutes. This is the time it takes between Googling for 'netflix' and viewing the first video on Netflix
• There are two parts to the NUX, chapters if you will; "For The Business" and "For The Viewer". "For The Business" is basically about the streamer getting paid. "For The Viewer" is about gathering information to improve the Netflix experience for the newly subscribed user, mostly by enabling personalization
• There's a minor 'blooper' in "For The Business", where Netflix indicates that there are 3 steps. However, Step 2 never appears. Instead, there are two steps that are both called Step 1, and Step 2 is skipped
• Both "For The Business" and "For The Viewer" are designed as separate set of steps. This may lead you to believe that you are done signing up after the three steps of "For The Business", but then the next set of steps presents itself. It might be that "For The Viewer" is optional, meaning that you're able to login to Netflix if you drop out of that flow. But it's not presented as such. I also wonder whether separate teams maintain both sets of steps
• In "For The Viewer", Netflix explains well why you should bother providing the requested information to them, with the goal of audio and subtitles in the desired language(s) and setting up personal profiles to enable recommendations tailored to each profile. Netflix asks the user to invest time NOW, to make your experience with Netflix better LATER. I think that in each case, the benefit outweighs the investment, however do note that it lengthens TTV
• When you consider adding something to the NUX that lengthens TTV, ask if you can get that info at a later stage. Asking too much upfront, might result in the user second-guessing if it's worth effort. Convince of value first, then get to invest some more, to get some more value next time, in a value-investment spiral upwards

The Importance of The NUX For Streamers

The NUX is a driver of retention, which in turn is a key metric for subscription businesses (see here). Netflix and other businesses have learned that giving the new user a smart start into the product, an on-ramp if you will, can improve their (early) retention rate. Such product on-ramps can take many different forms, but they have in common that they improve the first interactions that users have with a product new to them.

The Method

The performance metric I will measure is Time to Value (TTV):

"Time-to-value measures how long it takes for new users to experience value from your product." (Kieran Flanagan)

Airbnb's TTV is one click: search a location and see the listings. For a streaming service, TTV is how long it takes for a new user to start viewing. I will literally time how long it takes before the video is showing and the shorter the better.

I will follow the flow in the language that is shown to me, and that's Dutch. Though I will write this piece in in English so a larger group of people can read along and benefit from this article

The starting point of the NUX

There are many ways to get to an SVOD-service like Netflix. You could for example assume that their app sits in the App Store and go there directly. In this research however, I will follow what I believe is the most common user journey; running a Google search for the name of the SVOD service on my smartphone (an Android, in my case).

In half of all cases that people are looking for a company they will do a 'navigational search' and type in the brand name into Google, rather than use the companies' URL (source). It's just easier.

I am on a mobile device as this is the primary device to access the web and I want to use it to watch my first video after signing up for the service. That first video view concludes the experience.

Caveats: the experience I encounter may not be representative for the user experience in other regions, such as the UK or the US. Experiences may vary further based on whether or not you and I are part of an A/B/X experiment.

Summary of the 'chapters' in the Netflix new user experience

• Google Search for 'netflix'
• For The Business
• For the Viewer
• Getting the app, first login and first video view

I start by searching for 'netflix' on Google and click on what I recognize as Netflix. I land on a page where the main call-to-action is: submit your email address. Note: this isn't shown in the video, as I had already completed this step prior to recording - oops!

For The Business

The 3 steps that I refer to as "For The Business" as this is revolves around Netflix getting paid. It includes payment and legal stuff:

• plan select
• payment method select, including an external flow handled by the financial institution. Note: not shown in this video, as this is outside of the scope of the user journey that the Streamer controls
• set up automatic billing using selected payment method including acceptance of the Streamer's T&C's and Privacy Policy

Welcome to Netflix page: this is a "thank you"-transition page between For The Business and For The Viewer. Here, you have the option to enter your phone number for the purposes of getting access to your account when you forget your password

For The Viewer

This part is about tailoring the Netflix experience to the newly subscribed user by surveying the user for key information:

• Devices: with which devices are you going to watch?
• Profiles: who watches Netflix? This input is used to provide each user (profile) on the subscription their own product experience, such as "personal" recommendations
• Children: are children watching? This input is used to show age-appropriate content
• Languages: in which languages do you like to watch films and series? This input is used to pre-set relevant audio and subtitles
• Recommendation: pick 3 titles that you like

Getting the app, first login and first video view

These are the logistics of the Netflix app on my Android smartphone, logging in with my freshly minted account, and starting my first video:

• Netflix sends me to the Google Play Store to get their app
• First Open of the App
• Who's Watching? Select Profile
• First View (Time to Value: time stops here)

Conclusion

It takes about 3 minutes to sign-up for Netflix, excluding some time spend in the payment method app. The TTV is the time it takes between Googling for 'netflix' and viewing the first video on Netflix.

There are two parts to the NUX, chapters if you will; "For The Business" and "For The Viewer". "For The Business" is basically about the streamer getting paid. "For The Viewer" is about gathering information to improve the Netflix experience for the newly subscribed user, mostly by enabling personalization.

There's a minor 'blooper' in "For The Business", where Netflix indicates that there are 3 steps. However, Step 2 never appears. Instead, there are two steps that are both called Step 1, and Step 2 is skipped.

Both "For The Business" and "For The Viewer" are designed as separate set of steps. This may lead you to believe that you are done signing up after the three steps of "For The Business", but then the next set of steps presents itself. It might be that "For The Viewer" is optional, meaning that you're able to login to Netflix if you drop out of that flow. But it's not presented as such. I also wonder whether separate teams maintain both sets of steps

Netflix asks the user to invest time NOW, to make your experience with Netflix better LATER. Although I believe that Netflix explains well why they survey you for certain information, and in each case the benefit outweighs the investment, for example setting audio and subtitles in the desired language(s) and setting up personal profiles to enable recommendations tailored to each profile - it does lengthen the TTV.

When you consider adding something to the NUX that lengthens TTV, ask if you can get that info at a later stage. Asking too much upfront might result in the user second-guessing if it's worth effort. They should be convinced of the value first, and then invest some more, to get some more value next time, in a value-investment spiral upwards.

Such investment by the user can be put to work as an anti-churn measure, making use of the sunk-cost bias, such as making the user aware of the personal investment they have made into the product right in the moment when they are looking to cancel. This has made me reconsider my churn motives several times.

Which Streamer's NUX should I cover next time?

Appendix: screen-by-screen voice-over of the Netflix flow

In this section I provide a screen-by-screen "voice-over" including time-stamps that accompanies the video recording.

I start by running a search for 'netflix' on Google and the resulting landing page visit where the main call-to-action is: submit your email address.

0:00 - 0:17: here you see me run a Google search search for Netflix. Interestingly, HBO Max is the top ranking result. HBO Max has just launched in the Netherlands and they are advertising on the keyword 'netflix'. This is allowed by Google, provided that they don't use the trademarked word 'Netflix' in the ad itself (source).

The second result is for Netflix. There are a couple links, I click the 'Netflix' link that is on top of the card.

I land on the Netflix homepage. I click on "finish registration". It says that because I went to Netflix before recording the video, and created an account by submitting my email address (and dropped out after that). Normally the first step on the homepage is to submit your email address.

The Netflix.com homepage (NL)

0:19 The next page that shows reads: step 1 of 3: Pick your Plan.

"For The Business"

0:19 - 0:52: I refer to these 3 steps as "For The Business"? as this is the 'administrative' stuff related to? account and payment.

Step 1 of 3 is titled 'Pick Your Plan'’

Step 1 of 3: Choose your plan. 3 benefits are shown using red check marks. The primary call-to-action is to click the red Next-button.

0:24: Step 1 of 3: Choose the plan that suits you. This step is again called step 1 (of 3) although it's the next screen. Again 3 benefits, but different ones from the screen before. Again using red check marks. Below the 3 benefits, 3 plans are shown next to each other; Basic, Standard and Premium. The plans are differentiated visually by 4 lines; Price, Image Quality, Resolution and the Devices You Can Watch On. Interestingly, the last one (Devices) does not differ per plan. I wonder why show such a dimension that is shared equally by all plans?

With TV's capable of FullHD and more being dominant in markets such as The Netherlands, I can't imagine choosing the Basic plan to save 4 EUR/month compared to Standard. Then again, Standard is 50% more expensive than Basic.

I have not seen the video quality (resolution) of the stream offered under the Basic plan, which in Plan Select are advertised as 480p. The Basic plan is actually "less than 720p", but at least 480p, which allows for the possibility of eg 576p for SD shows from the UK (source). I wonder how "bad" it is on a FullHD-capable device, compared to the quality offered on Standard.

There is small print below the print;

• The availability of the resolution offered is dependent on your device, internet connection. And some content is not available in all resolutions. Then a link to the Terms and Conditions.
• Only people "at your house" can use the subscription. You can use 4 devices at the same time with Premium, 2 with Standard and 1 with Basic. It's interesting that they put these max concurrent streaming devices in small print, rather than as a benefit in the table; I would say this benefit, that differentiates the plans, is more useful information showing the Devices line that is the same for all 3 plans

0:33: Step 3 of 3: Choose payment method

Interesting, Netflix goes from step 1 (of 3) straight to step 3. So, Netflix does not have a step 2, but a step 1 twice.

The copy on top of the page reads:

Your subscription starts as soon as you have set up your payment

You will not be tied to anything.

Always cancel-able online.

Then the following payment methods are available to me:

• Credit- or debitcard
• iDeal
• PayPal
• Voucher code

I click on iDeal, as this is the most commonly used one in the Netherlands

0:38: Step 3 of 3: Setup automatic billing via iDeal

Again, a next screen that is indicated by 'step 3 of 3'; Step 3 is also double.

Three form fields show:

• First name
• Second name
• Bank

Several banks are shown. I recognise my bank and click on it. Below the banks is a card that mentions again the Plan I picked and the price per month of that plan

There is a mandatory checkbox that says: I understand that the subscription starts right after the payment and I consent to not having a right of withdrawal

Below that is a bunch of small print - it fills half my screen - that says that when I click the button 'start paid subscription' that means that I also accept the Terms & Condition and the Privacy Statement. Both are linked to.?

I click the red Button that says "start paid subscription" and this sends me to my bank's app at 0:53. I removed this part from the video as it is outside Netflix's control over the new user experience and therefore outside of scope of this video.?

0:55 Afterwards I am send back to the flow on the Netflix.com domain; in the URL it says 'simpleSetup'.

Welcome to Netflix page

0:55 here I am offered the option to enter my phone number, for the purposes of getting access to your account when you forget your password. I enter nothing and hit the button 'Next'.

"For The Viewer"

1:09 - 2:04 shows 5 steps that I refer to as "For The Viewer": this is about tailoring the Netflix experience to the newly subscribed user.

1:09: Step 1 of 5: With which devices are you going to watch?

7 options including the option "other". It does not explain how this information gets used, but it's good to have an idea on which devices I can potentially watch Netflix. I hit Telephone or Tablet, and Computer. Then I click the red button click Next

1:19 Step 2 of 5: who Watches Netflix?

Text below page title says that "others in your home receive recommendations tailored to their taste and and language preferences. Very nice for children!"

Five form fields show, the top one is called 'Your profile' and this field is pre-filled with my first name that I entered in step 3 of 3 in the part called "For The Business".

There are 4 other fields for "name" that I can fill in. I enter "Marie".

At the bottom there is a grey box that says again that only people in my house can use this subscription. I hit the red button Next.

1:30 Step 3 of 5: Are children watching?

Right below the page title it says "Children can watch child-friendly films and series from their own space, with the comfort of parental supervision"

This screen shows the names I entered in the previous screen, but now a checkbox is added to each field that says "children". I can apparently turn those profiles into Children profiles.

There is no such checkbox behind the primary profile. It is not explained why not, but it is clear that I cannot turn that main profile into a Child-profile

As there will be no children watching, I do nothing in this screen, and button click Next.

1:37 Step 4 of 5: in which languages do you like to watch series and films?

Is says: "When you let us know this information, we can better set your audio and subtitles. You can always edit this."

Dutch is pre-selected. I did not notice that as I went through the flow. I only saw it when I analysed the video after recording it. I also select English and hit the button Next.

1:49 Step 5 of 5: Pick 3 that you like

"With this information we can search films and series that you will like. Select what you like."

The list of titles shown is not endless. It is not clear why I am shown this selection of titles

I must select at least 3, then the button at the button becomes clickable

I hit the red button Completed. Note: it does not say Complete, but Completed. I think Voltooi would be better-suited here than Voltooid)

2:02 The next screen shows a loader animation and the text "Personalising for [my name]" and "we are looking up films and series that you will like". Without action on my end, the next screen loads:

Getting the App:

2:05 - 2:26

2:05: The next screen shows "watch now using our free app. You need the Netflix app to watch on your mobile device."

This screen might be optional and based on the setting I chose in Step 1 of 5 in chapter "For The Viewer", where I selected that I was planning to watch on 'Phone or Tablet'. I hiet the nutton Download.

2:09: The Google Play Store app opens, on the detail page of the Netflix app. I am on an Android mobile device. For iOS users, I would expect that the Apple App Store opens. Button click Install. The app installs. I see that the app is 16.89 MB in size. Button click Open.?

2:27: The Netflix app opens. For some reason, the video recording does not properly show the screen here; I am prompted to enter the email address and password I used to register my Netflix account.

2:45: The Netflix app opens with the screen Who's Watching? I see the 2 profiles that I created in chapter "For The Viewer", and for some reason there's a third button that says "Kids". I can also click another button to create another profile. I click my name.

2:54: I am shown a pop-in "Download & Go" which explains that I can look for a certain icon that indicates that I can download that title. There are 2 buttons; the first one is "look for downloadable titles" and the other ones is "OK". I hit OK as I am not interested in downloading right now.

2:57: The Home Screen of the Netflix app opens, and more than half of the screen is taken by a tile that promotes La Casa De Papel. There is a button that says "Play". I hit Play.

3:00: The video player takes over the screen and the title starts playing

Time to Value: ±3 min.

See the next article in this series about the NUX of SVOD Streamers - Videoland: