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TDG: Netflix Facing Maturity Challenges

10 Oct, 2013 By: Chris Tribbey

Considering the challenges Netflix has faced throughout the years — from the disastrous attempt at spinning off its DVD division to increased competition from all corners — the company has a lot to hang its hat on, according to an analysis from The Diffusion Group (TDG).

“It is remarkable that an over-the-top streaming service that first came to market in 2007 could, six years later, claim an Emmy, 30 million domestic streaming subscribers, and a rapidly growing international streaming business,” said Bill Niemeyer, TDG senior analyst and author of The Challenges of a Maturing Netflix.

The paper reviews milestones during Netflix’s history, and notes that in the two years since Netflix tried to launch Qwikster and backtracked, “total domestic Netflix streaming subscriptions are up almost 40%.”

“Would-be competitors will need to do as Netflix has done: spend the considerable money it takes to acquire quality content, move forward with good strategy, and offer a high-quality consumer search/discovery and viewing experience,” Niemeyer said, pointing out that Netflix spent $2.5 billion in 2012 on streaming content acquisitions.

For more information on the report — which forecasts Netflix numbers through 2022 and compares domestic Netflix streaming subscription counts from 2008 to the second quarter of 2013 with leading premium TV networks, VOD services and others — visit tdgresearch.com.

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