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Tuesday, 22 July 2014

As Netflix grows I head into the world of Streaming services.


Since we're currently in a world where TV barely exists outside of sports, streaming services such as Netflix have proven a saviour for some. Even I, who is still very much an advocate of watching scheduled TV have signed up for a free month trial of the world's leading streaming service for new content.

Netflix is now over the 50 million subscriber mark, this has been helped out by the streaming of Orange is the new Black. Of these new subscribers more than a million are from outside the United States.  Having explored the array of programming the service offers I'm not sure if I'm exactly overwhelmed. A lot of the US programming is available as part of Sky Go in their boxset section, and 40d features more homegrown content than Netflix. The driving force in the surge of subscribers actually seems to be it's very own unique content. A lot of hype as surrounded House of Cards and Orange is the new Black since they both launched.


I actually tried the prison based drama in the hope I to would be swept along in its greatness, alas I wasn't hooked in and still now fail to see what has got people in such a frenzy over it. Not only do people binge on episode after episode of their favourite Netflix original but they also head out from the safety of the sofa and buy their favourites on DVD.  6.3 million domestic DVD subscribers generated $194.7 million. Netflix’s domestic DVD subscribers have been declining for the past several quarters, and were down 16% from 7.5 million in Q2 2013.

13.8 million international subscribers, who together generated $307.5 million in revenue, up 85.4% from $165.9 million in Q2 2013. To date, international streaming revenue is $574.6 million.

Joshua Raymond chief market strategist of Cityindex.co.uk says, “Strong growth in both US and international subscribers helped Netflix to more than double its profits for its fiscal second quarter. The firms profit rose to $71mn from the $29.5mn it made in the same quarter a year ago, marking a rise of 140%. The rise in profits comes broadly in line with most market expectations but what’s perhaps the most pleasing is the loyalty of Netflix’s subscriber base. During the period, Netflix increased the price of its most popular monthly pricing plan by 12.5%, its first price hike in 3 years. Nevertheless, its US subscriber base continues to grow with an additional 570,000 subscribers added within the US for the quarter, on top of an 1.12mn subscribers internationally, giving them more than 50mn subscribers worldwide for the first time. Undoubtedly the timing of the second season for the Emmy nominated series Orange is the new Black, which came out in Netflix’s second quarter, has helped maintain subscriber loyalty here, as well as the popularity of established fave’s such as House of Cards.

I'm not sure I'll ever be a Netflix convert but you can't argue with its growing popularity. For me, you can't beat gathering with the family with the anticipation of watching a great piece of drama at 9pm. Watching something on Netflix doesn't give you the same social experience with everyone watching their programmes at different times and speeds. Whilst today's numbers suggest that Netflix is a long way from being a flash in the pan or a passing fad I hope that once the onslaught of sports has reached its natural end that real TV will prove unmissable again.

Source: Joshua Raymond

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