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Happy VOD Subscribers Give Netflix A Big Boost

Netflix is getting the much anticipated UI makeover. Projections say that it will rack up 80 million subscribers by end of 2016. It now accounts for 36.5% of Internet traffic in North America during peak usage hours. Those are some new updates related to the VOD and OTT juggernaut that paves the way for a massive growth. 

Subscribers to the leading video-streaming service are anticipating the new user interface next month,and Netflix is letting a subset of its members to test the updated software. It should be a fancy and functional update that should make the Netflix experience more fun.

This improvement, the first to Netflix.com in four years, “moves away from the outdated brick-and-mortar video store concept to one that’s more immersive, with more information in one place than ever before,” according to Cliff Edwards, Netflix’s chief of corporate communications and technology. “It takes advantage of high-quality screens and our predictive algorithms to deliver the right information to the right people, in an easy-to-browse experience.”

Netflix new UI

One interesting research report (made by Sandvine) says that Netflix erupted in terms of consumer usage in the US.

The key points of the finding were:

  • Netflix continues to slowly increase its domination of North American fixed networks, accounting for 36.5% of downstream traffic in the peak evening hours;
  • Their recent decision to encrypt their service will result in the majority of Internet traffic in Latin America and North America being encrypted in 2016.

Futuresource recently release some amazing data that depicts Netflix’s current and future success. Their projections say that the VOD giant will add 80 million new subscribers by the end of 2016.

Their report The Rise and Rise of Netflix tracks the tale of the company’s development from 2008, after closing a 3-year deal with Starz Entertainment, to its current position as one of the leaders in broadcasting entertainment. According to this year’s data, the subscription video-on-demand business model built a 60 million subscribers base by June 2015. Futuresource projects new 20 million to this numbers and become twice as big as any other pay-TV provider except Time Warner’s HBO. Netflix has an astonishing 20%+ growth rate, which boosted their stock prices, gives them freedom to fund further growth and push high-end, content investment. On the other side, these analysts stress the slower growth for the SVOD service in Europe (most notably Germany and France), and potential issues in Japan where they will probably face a lot of cultural challenges.

We live in a very dynamic era, when it comes to online entertainment, and we are looking forward to more exciting market developments.



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