They’re subscription based. That’s the answer to what do Netflix and SaaS (software-as-a-service) have in common. Seems obvious and a little silly, but that’s an important similarity to have. The subscription model is proving to be better for both businesses and consumers. Think about it. How do you get your movies and tv shows? Sure, you have some favorite shows you might watch live, and a few movies you like being able to play whenever you want, but you likely use Netflix (or one of their competitors) for much of your viewing. Makes sense. Would you rather buy one movie you can watch whenever or Netflix’s whole library for 2-3 months? Usually, you go with Netflix.
Why Does Netflix Subscription Win?
Why do you go with subscribing to Netflix over outright purchasing what you want to watch? If you like to watch a decent amount it’s the month it’s cheaper, and it’s a constantly changing selection. If you buy a movie, you’re likely to only watch it once for a while. But with Netflix, you can watch content as much as you want. There’s no limit. You keep your subscription going because they keep adding new content. Whether it’s House of Cards, Orange Is the New Black or Daredevil, you stay with Netflix to see their new offerings each month and to gain new seasons of your favorite Netflix originals. You’re subscribed to see what you’ll enjoy in the future, as well as what you’re enjoying in the present. 
That’s the benefit of a subscription. It’s not locked as a single thing. You don’t get Netflix’s library kept as it was when you signed up, you get everything that’s new too.
What Does This Have to Do With SaaS?
SaaS products have the same successful model as Netflix. When you sign up for a service, you get it as it currently is, and can use it as much as you want. But you also gain access to whatever new features that software gains over time. Good SaaS products don’t simply stay the same. That would be like having to buy the same movie each month. They grow and evolve to better suit your needs and offer better value. You want to pick companies and software that are committed to constantly adding value to the product you’re buying. You wouldn’t stay with Netflix if they didn’t add new things you wanted to see. Likewise, you shouldn’t stay with software that isn’t adding features and improvements that help you achieve more in your long-term success.
For example here at Cirrus Insight, we heard what people were wanting and added email and link tracking (sort of like our own House of Cards). Then we added reply tracking (season 2). And we have other big features coming down the pipeline to get excited for that we can’t wait to tell you about. When you buy SaaS buy for the features you want today, but also buy for the features that will be coming tomorrow. If you trust the company, and know they’ll continue to deliver benefits to your subscription (like Netflix), then that’s the one you want.