There is no doubt that Netflix is the dominant force when it comes to video streaming; it has around 90% of the market with competitors such as Hulu and Amazon Prime taking up the remaining 10% between them. The growth of Netflix has changed the way we view content for good. This not only means that more and more people are choosing to cut the cord on traditional TV, it also means that binge watching is becoming more common place.
Of course, Netflix was not always a hugely successful video streaming service. It started life as mail order DVD service as far back as 1998. The video steaming side of the operation only began in 2007 and it has taken off since then. Today, Netflix does not just stream past TV show and movies; it’s a respected producer of original content. The Netflix original House of Cards is a commercial and critical success, having won several prestigious Emmy awards. Netflix has come a long way since it started out and is most definitely here to stay.
Current demand as high as ever
The current demand for Netflix is just as high as it’s ever been with the company having streamed more than 42.5 billion hours of content across the globe in 2015. A major part of the reason for the success of Netflix is that people enjoy the convenience of being able to watch their favourite shows where and when they want to. Netflix has added to the experience by producing its own high-quality content as well.
Netflix in competition with cable
Not only is Netflix the dominant force in SVOD it’s also a major competitor against cable TV services. The number of people dumping cable offerings may not be huge but it is significant. Back in 2010 88% of people who used Netflix also had some sort of pay TV service; by 2014 the figure had reduced to 80%. You can see that people are gradually seeing less need to have a pay TV service in addition to Netflix. One thing that pay TV still has the upper hand in at the moment is screening live TV, although Netflix has entered that arena through its contract with Chelsea Handler.
The most telling statistic when you consider Netflix’s resilience for the future is that around 79% of millennials in the US subscribe to the service. This is a huge figure when you compare it to 26% of baby boomers and 38% of Gen Xers. As these millennials age, they are unlikely to change their habits so use of Netflix seems like it’s only going to continue growing.