Tuesday, July 24, 2012

Netflix Sees Cable as Bioggest Competitor

Netflix believes its biggest competition comes from video entertainment subscription providers, namely cable, satellite and telco video providers. Lots of people would say Hulu Plus or Amazon Prime as Netflix's biggest immediate competitors, and that would be logical. 

Netflix notes that it competes for consumers’ viewing time with a variety of video services, including linear TV, DVRs, over-the-top (OTT) pure plays, and authenticated streaming offerings of the video entertainment providers and cable networks (cable operators, satellite TV and telco TV providers, and "TV Everywhere" offerings associated with those providers).

"We have yet to see HuluPlus or Amazon Prime Instant Video gain meaningful traction relative to our viewing hours, but as we continue to build a domestic profit stream they are likely to increase their efforts to gain viewing share," Netflix says. 

Netflix also believes "Redbox Instant" by Verizon will have a tough time breaking into the ranks of the top three providers. 

Still, Netflix believes its "biggest long-term competition for viewing hours will come from MVPDs and cable networks, both directly and through their TV Everywhere offerings."

The operant word is probably "long term."

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