CEO Hastings: Hulu, Amazon, Redbox No SVOD Substitute to Netflix23 Jan, 2013 By: Erik Gruenwedel
Co-founder says competing SVOD services have little more than half of Netflix’s top-200 movies and TV shows
In the burgeoning battle for supremacy in the subscription video-on-demand market, pioneer Netflix wasted little outlining in a Jan. 23 letter to shareholders how far ahead of the competition it is.
In a colorful pie chart, Netflix displayed visually that among the top-100 movies and top-100 TV shows streamed by its 33.12 million global subscribers, Hulu Plus, Amazon Prime Instant Video and pending Redbox Instant by Verizon shared just 112 of the titles combined.
“In other words, when it comes to the most popular content with members on Netflix, none of these services are good substitutes to Netflix,” wrote CEO Reed Hastings and CFO David Wells.
Specifically, Netflix said Redbox Instant has 12 of its top-200 streaming titles, while Hulu Plus offers 27 of the titles, and Amazon Prime has 73 titles.
Hastings and Wells agreed the other services do offer original programming not found on Netflix, including “Battleground” and “Community” on Hulu, or “Falling Skies” and “The Closer” on Amazon Prime, among others.
The executives said the migration toward original programming underscores the reality that the SVOD market is gearing up to take on Showtime and HBO directly. They said that in the United Kingdom and Scandinavia this has already occurred as Sky NOW TV, LoveFilm and Netflix have limited overlapping content.
“When it comes to competition, we not only have a superior content offering due to our larger budget, but we are further along the experience curve when it comes to improving our user interface,” Hastings and Wells wrote. “For all of these reasons, Netflix continues to add members rapidly.”