As if it needs more attention, Netflix has been tapped the fastest-growing brand of 2019, according to Brand Finance, a brand valuation consulting company based in New York and Paris.
Based in part on a company’s ability to remain relevant and make an impact on the culture (home entertainment) it’s participating in, Netflix saw its brand value increase 105% over the past year to $21.2 billion.
The report said the subscription streaming video pioneer is set to play the “lead role in home entertainment,” building a disruptive business model as a universally accessible narrowcaster and effectively challenging traditional broadcasting brands and distribution.
“Netflix delivers high-quality and varied programming to anyone with Internet access and a credit card,” Alex Haigh, valuation director at Brand Finance, said in a statement. “The platform has embarked on a disruptive approach to media services and now has incumbents in the market looking over their shoulder.”
While Netflix’s brand keeps growing exponentially, Amazon (including Prime Video) remains the most valuable domestic brand, growing nearly 25% to $187.9 billion valuation.
“This year, Amazon’s brand is worth approximately half of the combined value of the 42 retail brands in the ranking,” Haigh said. “The retail industry is another sector at a crossroads as tech giants and online sellers encroach upon the traditional business model with a completely new proposition.”
With the media industry feeling the effects of tech disruption, another rapidly growing digital media brand is YouTube(up 46% to $37.8 billion) this year jumping 10 spots to 13th nationally.
Like Netflix, YouTube is building a broad platform for video content, in an effort to leverage its brand from merely peer-to-peer video creation and sharing to also include a growing premium and professional video library.
Among traditional media brands, Disney entered the top 10 nationally on the back of its M&A acquisition of 20th Century Fox Film Corp. The brand jumped 40% in value to $45.7 billion.
Tech giants, Apple (2nd, $153.6 billion) and Google (3rd, $142.8 billion) remained entrenched in their positions from last year.
With a 47% increase in brand value to $119.6 billion, Microsoft moved into 4th after the company’s successful turn towards a cloud-centric business.
With all eyes turned to 5G, AT&T dropped down a spot to 5th, after a modest 6% brand value increase over past 12 months to $87 billion.
Aside from calculating brand value, Brand Finance also determined the relative strength of brands using a scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.
Though Facebook held onto its 6thspot, its brand strength suffered the second worst decline among the top 100 brands, resulting in a rating downgrade from AAA+ to AAA- after a year of privacy issues that have landed the company in the hot seat.
Behind tech, the largest industry with a combined brand value of over $1 trillion, the retail sector comes in second with $340.5 billion. Eighth-ranked Walmart (up 10% to $67.9 billion) is the nation’s most valuable brick-and-mortar retail brand, as it continues to push the boundaries of its physical store and logistics network.
Home Depot (up 39% to $47.1 billion) jumped from 11th to 9th, while its rival Lowe’s saw its brand value go up 49% to $23.9 billion.