Monday, April 11, 2011

Netflix Is 2nd-Largest Pay Video Provider, by Subscriber Metrics

If one were to add Netflix to this chart, it would rank about second, with some 20 million subscribers. Granted, there is a significant revenue magnitude difference. Netflix gets something on the order of $12 a month per subscriber, while Comcast gets about $118 a month. On the other hand, Netflix offers a product that competes most directly with premium channels such as HBO, Showtime and Starz.

Those channels cost between $10 to $16 a month, typically. We are some ways from the possibility that Netflix or YouTube could actually become a competitor in the "basic cable (ad-supported channels)" segment of the business. But 20 million paying customers is a huge advantage.

No comments:

Quite Surprised a "Less Than" 100-Mbps Home Broadband Actually Works

Consumers can be quite price sensitive, especially for products that do not have high emotional resonance (sports gear, autos, clothing, fra...