Amazon locks the market: Is Netflix too late for Germany?
June 4, 2014 10.05 Europe/London By Jörn Krieger
Veed AnalyticsThe German video-on-demand (VOD) industry is eagerly awaiting the launch of global market leader Netflix in Germany.
Veed Analytics, an analysis service by German consultancy Mücke, Sturm & Company specialising in the international video market, is sceptical about Netflix’s prospects for success.
“Our content analyses show that Amazon Prime offers the largest catalogue of current movies and TV shows in Germany. Assuming Netflix Germany launches a similar TV show offering to Netflix US, they would only rank fourth in Germany. This raises the question of whether Netflix enters the German market too late,” said Bernd Riefler, chief marketing officer at Veed Analytics.
Within a few months, Amazon Prime Instant Video has reached the top position among the German subscription-VOD services. A recent Veed Analytics analysis shows that Amazon offers 14% of the current 400 movies, the 100 most successful movies between 2010 and 2013 – significantly more than any other service. Of the current 100 TV shows measured by DVD sales numbers, Amazon also tops its competitors maxdome, Watchever and Sky Snap.
The content Netflix will offer when it launches in Germany by the end of 2014 is still unknown, but its positioning in the US at least gives a hint of the potential line-up. According to analysis by Veed Analytics, Netflix US is well positioned with regards to the US current 400 movies, but lacks current TV shows. Assuming a similar positioning in Germany, Netflix would only rank fourth in the TV shows category compared to Amazon, maxdome, Watchever and Sky Snap.
“Amazon already locked the market with a very low price point and offers an attractive content catalogue. Netflix has a superior product in terms of technology and user-friendliness, but ultimately the user decides based on price and content”, summed up Thies Haase, vice-president product at Veed Analytics.