Irrespective of Netflix growth in the market, it is losing its market share to the competitors in a very tough industry.
Only one company dominates the streaming industry as of now. Ever since Netflix Inc. made its entrance in the streaming market, it has sidelined most of the traditional TV businesses that were considered as previous market leaders. The company has been stumbling when it comes to market share but irrespective of this, its growth is likely to be solid in the coming future. The fame and popularity of Netflix might be at stake but that would not have an impact on its entire business whatsoever. It is one of the hottest stocks in the market recently regardless of the recent dip in the market.
Digital TV Research recently conducted a research, which showed that the streaming organization has the ability to go strong and keep on growing at a faster pace for the next five years at least. The research firm released its Global OTT TV and Video forecasts in June, which showed that the number of streaming subscribers was going to reach 70 million users globally at that time.
According to the excerpt of the report by Digital TV Research, “Netflix's international operations are growing fast. Digital TV Research expects its international paying subscribers to grow to 26.36 million by end-2015. We also expect that its US paying SVOD subs will reach 43.54 million by end-2015, giving a global total of 69.90 million.”
This was just a forecast and an estimate claiming Netflix can easily reach 70 million subscribers. Reality was different for the streaming service provider. It ended its year just ‘shy’ of 75 million subscribers. Almost 71 million streaming subscribers actually paid for the service and the remaining were on their free trial period. Netflix launched simultaneously in 130 countries making its total count of destinations to 190 countries.
Digital TV Research also released another report in November 2015 that showed estimates of the company’s growth by the end of 2020. According to the report, Netflix will have nearly 115 million streaming subscribers across the globe by the end of 2020. The growth factor symbolizes that the company will have to give up on the market share in the market considering the circumstances. Regardless, the Subscription Video on Demand (SVOD) segment will continue to grow globally in the near future. Netflix will grow as well despite losing its market share to competitors.
On the other hand, analysts also suggest that the company should consider increasing its subscription fee if it does not want to risk its business due to the rising debt. If it comes to monthly revenue per member, the figure is actually lower than what many people perceive it to be. A common person would think that Netflix is making $7.99 per month from one member (if he/she chooses the most basic subscription plan) but it is not all $7.99 it gets as revenue. In 2015, it earned only $6.84 per member per month, which makes $82.04 per year from one member.
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