Netflix, Inc. (NFLX) Is Top Choice For Subscription Video-On-Demand

Netflix, Inc. (NFLX) Is Top Choice For Subscription Video-On-Demand

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.

Play Quizzes 4

Netflix, Inc. (NFLX) Is Top Choice For Subscription Video-On-Demand

Netflix Market Share For SVOD

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, Inc. (NASDAQ:AMZN)’s Prime, respectively.

This Too Value Fund Explains Why Turkey Is Ripe For Investment Right Now

TurkeyThe Talas Turkey Value Fund returned 9.5% net for the first quarter on a concentrated portfolio in which 93% of its capital is invested in 14 holdings. The MSCI Turkey Index returned 13.1% for the first quarter, while the MSCI All-Country ex-USA was down 5.4%. Background of the Talas Turkey Value Fund Since its inception Read More

It is obvious that the market share of Netflix, Inc. (NASDAQ:NFLX) for SVOD is significantly higher than Hulu Plus and, 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, 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.

Updated on

Marie received her Bachelors Degree in Mass Communication from New Era University. She is a former news writer and program producer for Nation Broadcasting Corporation (NBC-DZAR 1026), a nationwide AM radio station. She was also involved in events management. Marie was also a former Young Ambassador of Goodwill during the 26th Ship for Southeast Asian Youth Program (SSEAYP). She loves to read, travel and take photographs. She considers gardening a therapy.
Previous article Federal Reserve To Trim Bond Purchase Later This Year
Next article Apple Inc. (AAPL) iPhone Mini May Launch In July [REPORT]

No posts to display