Netflix’s major push into Europe appears to be off to a good start, at least if the UK is an indicator of the rest of the continent. Recent data from research firm Enders Analysis suggests that Netflix, Inc. (NASDAQ:NFLX) has surpassed the three million user mark in the UK, more than doubling its streaming service user base over the last year.
According to The Telegraph, three million total Netflix subscribers means more than one in 10 households have joined the new streaming service, and suggests subscriber growth is starting to ramp strongly. The figure puts the firm far ahead of its nearest rival, Amazon.com, Inc. (NASDAQ:AMZN), especially among young viewers who perceive a ‘cool’ factor associated with Netflix.
Survey says 2.8 million subscribers at end of Q1
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Enders Analysis examined a survey undertaken by BARB, the organization that assesses audiences for the UK television industry, that was based on a sample of 13,500 households. The survey calculates Netflix, Inc. (NASDAQ:NFLX)’s UK subscriber base at 2.8 million as of the end of Q1 this year, much greater than had been estimated from other, smaller surveys.
Statements on Netflix subscriber growth
Toby Syfret of Enders Analysis, commented: “Netflix has always been highly secretive and released very few details about its international streaming performance in individual countries beyond the general statement that it is seeing encouraging progress everywhere. Not since Netflix’s announcement in August 2012 that its total subscriber base in the UK and Ireland had passed the one million mark, have we heard any numbers from the horse’s mouth.”
Syfret went on to say that Netflix, Inc. (NASDAQ:NFLX) has certainly surpassed the three million mark by now given the company continues to report strong growth in international markets.
Netflix’s success pressures rivals
The Enders Analysis report also notes that the growing popularity of Netflix is pressuring rivals such as BSkyB and Amazon. BSkyB is Britain’s biggest pay-TV provider, with more 10.7 million customers across satellite and its own streaming service. To date, BSkyB has not allowed third party on-demand services onto its platform.
The most recent data show that Amazon’s subscription streaming service has less than half as many subscribers as Netflix with only 1.2 million households. Moreover, Amazon’s viewers tend to be older, according to data from BARB’s survey.
Syfret noted: “Netflix has a notably higher take-up in ABC1 homes, and at the same time homes with three or more TV sets, HD reception and one or more 40-inch screens. The biggest difference of all lies in the age of head of household profile, where Netflix has double the proportion of the 16-24s – clearly the extra ‘cool’ factor.”