Netflix 2014 – Domestic Dominance, International Escalation
When Netflix first launched in 1998 as an innovative DVD-by-mail subscription service, it would have been difficult to imagine where it would be 15 years later. During the first half of 2013, Netflix passed HBO to become the largest premium TV/movie subscription service in the United States with 30 million streaming-only subscribers, and today enjoys a rapidly growing international streaming business.
This is made more remarkable by the fact Netflix’s Internet streaming service was introduced just seven years ago, in 2007.
The primary focus of this report is on the US operation of Netflix’s streaming service. More specifically, this report provides:
- A review of historical streaming subscription levels from Q3-11 to Q4-14;
- An examination of Netflix’s international TAM expansion market from 2010 to 2014;
- A comparison of Netflix subscription with leading premium TV networks including HBO, Showtime, and Starz, as well as with MVPD VOD;
- Estimates of Netflix US and international quarterly streaming usage from Q3-11 to Q4-14, both per-subscription and in total;
- Forecasts of Netflix US streaming subscriptions and use from 2013 to 2022 and comparisons with estimated 2013 annual US TV viewing; and
- Suggested strategies for Netflix, as well as those looking to compete with the company, including incumbent networks and operators, and native OTT firms.
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