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The Case study: Netflix’s video strategy

  • February 2014
  • -
  • Analysys Mason
  • -
  • 25 pages

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Netflix has firmly established itself as a globally known provider of paid-for OTT video services, with more than 40 million streaming subscriptions in September 2013. We anticipate that Netflix will generally complement, rather than cannibalise, traditional pay TV. This Viewpoint providesdetailed analysis of Netflix's KPIs and its proposition, and an assessment of its prospects in the video market.

Netflix created a new type of user experience that transformed the video market, by focusing on certain types of content – notably TV series and catalogue films – and delivering it over existing fixed broadband infrastructure to a wide range of video-capable, Internet-connected devices as a low-cost, ‘all you can eat’ subscription video-on-demand (SVoD) service featuring content recommendation.

- We anticipate that Netflix will generally complement, rather than cannibalise, traditional pay TV, and that ‘cord cutting’ will only apply to a small minority of existing pay-TV subscribers. However, it may dissuade some free-to-air (FTA) TV viewers from eventually taking up traditional pay-TV services.

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