Joseph O'Halloran | 18-09-2013
The time may have arrived when it is incorrect to describe Netflix as an alternative to TV services as new research from TDG is predicting that OTT service will double its hours over the next five years.
According to TDG’s The Maturation of Netflix - US Streaming Subscriptions & Viewing thru 2022, the over the top leader is forecast to reach 13 billion streaming hours during 2013 and top 26 billion hours in 2018.
Yet despite this growth, TDG expects market forces will see both US Netflix subs and total viewing to level out around 2020, while international growth will continue.
"Netflix is well out front in OTT with excellent strategy and execution, but will face increasing competition in the US from online enterprises including Amazon, Google, and Hulu, as well as the TV everywhere efforts of television networks and multichannel operators," said TDG Senior Analyst and report author Bill Niemeyer.
“Even with [US] growth expected to plateau in 2020, Netflix will remain a formidable US market force…Would-be competitors will need to do as Netflix has done: spend the considerable money it takes to acquire quality content, move forward with good strategy, and offer a high-quality consumer search/discovery and viewing experience."