Netflix, Inc. (NASDAQ:NFLX) remained the top choice for subscription video-on-demand (SVOD), according to the recent report released by the NPD Group, a global information company.
During the first quarter of 2013, Netflix, Inc. (NASDAQ:NFLX) has 89 percent market share for SVOD compared with the 10 percent and 2 percent market shares of its competitors, Hulu Plus and Amazon.com, Inc. (NASDAQ:AMZN)’s Prime, respectively.
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It is obvious that the market share of Netflix, Inc. (NASDAQ:NFLX) for SVOD is significantly higher than Hulu Plus and Amazon.com, Inc (NASDAQ:AMZN)’s Prime, but it is interesting to note that its market share declined by 4 percent from 93 percent in the same period in 2012.
Hulu Plus gained 3 percent in the first quarter this year from its previous market share of 7 percent while Amazon.com, Inc. (NASDAQ:AMZN)’s Prime market share increased by 1 percent.
The number of viewers watching television shows on SVOD services increased by 34 percent in the first quarter of the current fiscal year, according to NPD’s VideoWatch VOD report.
In a statement, Russ Crupnick, senior vice president of industry analysis at NPD said, “There is no doubt that Netflix is driving the growth in SVOD, particularly with increased attention to television programming.”
“We are also seeing good gains in the streaming numbers from Hulu Plus and Amazon Prime, while neither pose an immediate threat to Netflix, it is interesting to see which services later adopters will try,” added Crupnick.
According to NPD, 76 percent of SVOD subscribers streamed programs only from Netflix, Inc. (NASDAQ:NFLX) in the first quarter last year, however that number declined to 67 percent. The report cited that 10 percent of SVOD streamers are now using both Netflix and Amazon Prime while 8 percent are using both Netflix and Hulu Plus.
Furthermore, Crupnick said that Netflix, Inc. (NASDAQ:NFLX) enjoyed a virtual monopoly of the SVOD market since the launching of Netflix Watch Instantly.
“While Hulu Plus and Amazon both still have a long way to go before they come close to catching Netflix, we are beginning to see increasing trial of these services, even among some Netflix users,” said Crupnick.
He also emphasized that Netflix, Inc. (NASDAQ:NFLX) still enjoys a “quite comfortable market share lead.”
Netflix Released Document:
As reported last month that Netflix, Inc. (NASDAQ:NFLX) released a document projecting the future of television after posting an outstanding first quarter earnings result this year. The company indicated that the liner TV viewing trend will vanish and it will be replaced by internet TV apps. The company said it is spending $350 million to improve its services and ensure that its availability in various platforms and devices.