Understanding Netflix product strategy with DHM model

👋 Hey, SK here!  Welcome to XTEN10X. I write about startups, product management , career growth and other stories based on real-world learnings.

In today’s post, we’ll be decoding Netflix’s product strategy and the factors that have made it a streaming giant.

Recently, I was tasked with working on the business case for a new product.

The assignment was straightforward: write a business case and present it to leadership, explaining why the product should be pursued.

I recalled Gibson’s DHM Model and applied its 3 pillars (Delightfulness, Hard-to-copy and Margin-enhancing).

While this framework is ideally suited for developing and assessing product strategies, I used these pillars as a reference for creating my business case.

The DHM Model encourages product managers to think strategically by prompting the right questions.

1. Delightfulness

   Definition: How does this product/feature delight the customers?

   Key focus: Here, the focus is to ensure the product creates an emotional connection (joy/satisfaction) with the customer by exceeding expectations.

2. H- Hard-to-copy

   Definition: How difficult is it for competitors to replicate this product or feature?

   Key focus: Building defensibility through unique features, intellectual property, or network effects.

3. M- Margin-enhancing

   Definition: How can this be be a potential margin generating product/feature?

   Key focus: Ensuring the product or feature increases gross margins over time

Ask yourself these questions to ensure your product strategy is on the right track!

The DHM Model is a powerful framework that helps product managers and leaders think from long-term perspective and create a strong, future-proof product strategy.

In this article, I’ll apply the DHM Model to Netflix to decode their product strategy.

Netflix's product strategy primarily focuses on creating a compelling customer experience through continuous innovation.

Key elements include: