Tuesday, April 23, 2013

Netflix Now Bigger than HBO

Netflix, which ended 2012 with 27.15 million domestic subs, added just over two million net new subscribers in the first quarter 2013 results. 

 HBO ended 2012 with 28.7 million subscribers.  That means Netflix finally has more subscribers than HBO. 

Nor is it possible to describe Netflix as a "DVD by mail" service, given the overwhelming preference for streaming delivery. These days, it is the most successful streaming service. None of which means its challenges are over. 

You might also say Netflix is the most popular "cable network" as well.  

Netflix has faced strong doubts about its prospects several times in the past. But Netflix has surmounted every set of those challenges, most crucially questions about its business model.

Some would say the next set of challenges for Netflix will involve scaling its original programming operations and managing the heavier financial requirements that will entail. There are doubters. There always are, where it comes to Netflix. 


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