Brief:

• DVD Netflix, the mail-order DVD rental service that preceded the company's popular streaming platform, is giving away branded swag to its social media followers during the holiday season. Subscribers can win prizes for posting pictures of its red delivery envelopes in festive settings to their Twitter, Instagram or Facebook accounts, per a company blog post.
• The posts must include the #DVDme hashtag in the caption for a chance to win branded mittens, socks, hot chocolate set with coffee cups or blankets, among other prizes. The company will choose several winners each month from November through February.
• DVD Netflix also will host its next Twitter chat on Dec. 9 at 6 p.m. EST. Fans can participate in the online discussion about their favorite holiday movies, quotes and scenes by tagging their posts with the #DVDchat hashtag or following on Twitter. The company will give away prizes to the most enthusiastic participants in the hour-long chat session.

Insight:

DVD Netflix's social media promotions aim to connect with the company's most avid customers who have stuck with its mail-order service for 21 years, amid the rapid expansion of over-the-top services that compete for their attention. By urging people to share photos of how they plan to enjoy their DVD rentals, the company can participate in online conversations, reach more people and promote its more traditional service, especially as the streaming wars escalate with new services cropping up this year and next.

Netflix had typically encouraged more customer engagement, asking subscribers to review movies or rate them with a "thumbs up" or "thumbs down." The company used the ratings to improve its movie recommendations. Last year, however, Netflix deleted user reviews from its streaming platform, citing declining use. That drove subscribers elsewhere to share their opinions about movies and shows with friends.

Branded swag is nothing new, but Netflix is now creatively tying a slew of products to a giveaway that encourages direct conversation with fans. It's a timely venture as the holiday gift-giving season is now in full swing.

DVD Netflix's subscriber count fell about 20% to 2.28 million in Q3 from a year earlier and is much less profitable than its streaming business. For film buffs though, DVD Netflix offers a much bigger selection of movies, including many that aren't available on its streaming platform. Netflix has focused much of its spending on exclusive programming to differentiate its streaming service from a growing number of rivals such as Disney+, Hulu and Apple TV+. WarnerMedia's HBO Max and NBCUniversal's Peacock services will join the fray next year. Netflix's U.S. streaming subscriptions rose 6.4% to 60.6 million in Q3 from a year earlier, while its international business was much stronger with a 33% gain to 97.7 million.