A survey indicates that Netflix, Inc. (NFLX)’s video streaming services are now in 25 percent of U.S. homes, up from 20 percent a year ago. The company’s next closest competitor is Amazon.com, Inc. (AMZN)’s Instant Video service, which is in just 8 percent of U.S. homes.
Netflix, Inc. (NASDAQ:NFLX) is now in a quarter of all U.S. homes, according to a survey conducted by Frank N. Magid Associates. A year ago the company’s video streaming service was used in 20 percent of American homes. Earlier this week Netflix, Inc. (NASDAQ:NFLX) started raising money to invest in more original series.
Amazon.com, Inc. (NASDAQ:AMZN)’s Instant Video rose to 8 percent of American homes. Last year it was in 5 percent of homes. Hulu’s service is in 5 percent of homes this year, compared to 4 percent last year. The survey found that 55 percent of all homes in the U.S. stream their television shows and movies, compared to 49 percent in 2011. The Green Bay Press Gazette reports that the survey covered 1,500 homes in the U.S.
PricewaterhouseCoopers projects that the U.S. video streaming market will almost double in the next three years, growing from $3.7 billion in 2012 up to $6.7 billion in 2016. Right now Netflix, Inc. (NASDAQ:NFLX) and other video streaming services are battling for their slice of the U.S. streaming market. These next few years will be key in the battle of streaming video.
Experts believe that by the end of this year, 42 percent of households in the U.S. will have television sets that are connected to the Internet. That would be an increase from 35 percent in 2012.
Netflix, Inc. (NASDAQ:NFLX) has been focusing on making its service available to as many U.S. homes as possible, adding it onto a variety of devices, including the new Wii U. The company also uses algorithms to help it determine which shows hold the broadest interest across the majority of its subscribers.