Netflix to face "intensive competition" over the next five to ten years

Editor | 09-10-2013

Even though it believes the over-the-top leader has to date had, with one exception, a history of first-rate execution, research house TDG believes that Netflix is in for a more challenging future.

In a new white paper, The Challenges of a Maturing Netflix, that analyses the growth of the OTT leader from inception to 2013, TDG states that it is "remarkable" that an OTT streaming service that first came to market in 2007 could, six years later, claim an Emmy, 30 million domestic streaming subscribers and a rapidly growing international streaming business.

Yet TDG warns that Netflix will face increasing competition in the US from the likes of Amazon, Google, and Hulu, as well as the TV everywhere efforts of television networks and multichannel operators. Consequently, it predicts that the space is set for intense competition over the next five to ten years.

"Apart from Qwikster, Netflix has a long history of first-rate execution," explained Bill Niemeyer, TDG senior analyst and author. "In the two years since that episode, the company has focused efforts on building its content library, creating original content, and improving the quality of customer experience. As a result, total domestic Netflix streaming subscriptions are up almost 40%. 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."