Swisscom plans Netflix competitor

June 10, 2014 23.02 Europe/London By Jörn Krieger

Swisscom Bern Köniz BusinessparkSwitzerland’s domestic telco Swisscom wants to launch a video-on-demand (VOD) service on its IPTV platform Swisscom TV later this year offering movies, series and documentaries for a monthly flat fee.

With the flat-rate model, the company follows the strategy of US-based global VOD market leader Netflix which wants to roll out its service in Switzerland by the end of the year.

The Swisscom offering will be operated by Swisscom subsidiary Cinetrade on its Teleclub platform, management board member Willy Heinzelmann confirmed to Swiss newspaper Schweiz am Sonntag. He stressed that the plans were made independently from Netflix’s recently announced market entry in Switzerland. He didn’t want to give details, however, on the launch date or price scheme.

The VOD business grows quickly, said Heinzelmann. “Last year, we reached a turnover of more than CHF30 million (€25 million) in this segment. This year, I expect again a growth rate in the two-digit percent area.”

Heinzelmann said that the company has been contacted by Netflix regarding a possible partnership. Netflix’s plans would, however, not be enough concrete at this stage.