Subscription VOD: Netflix Expected to Face New Competition in 2012
By Rob Scott
January 2, 2012
January 2, 2012
- Netflix is expected to face significant challenges in 2012, as its customer-satisfaction ratings have fallen below those of Amazon and new competitors continue to emerge with original video plans.
- “There’s many more digital players that will command the attention of studios and consumers in 2012, from would-be Netflix rivals to those sporting entirely different business models and aiming to deliver TV programs and movies to every screen in U.S. homes,” reports Variety.
- The success of the Netflix model has led to a new category known as subscription VOD, which is expected to spawn imitators. “Hulu, for one, built an SVOD component, Hulu Plus, off its massive ad-supported base that has nabbed 1 million subs in over a year,” notes the article. Both Netflix and Hulu have commissioned original content and continue to secure exclusives on catalog fare.
- Amazon’s SVOD spinoff could present a challenge to Netflix, as Amazon Prime is also closing catalog deals. And Verizon “may enter the space in conjunction with Redbox.” We may also see SVOD models from Walmart’s Vudu and Dish Network’s Blockbuster.
- The article cites the possible impact of a la carte digital rental options, such as iVOD offerings through Apple’s iTunes, and the one-off movie offerings Facebook has been testing.
- Variety notes an additional possibility: “Microsoft’s Xbox Live was the first to try a third digital-distribution model for video that everyone from Verizon to Sony has been reported considering: the virtual MSO model, which bundles a bunch of linear channels akin to how a cable operator does, but with much fewer channels at a much lower price point. All the while, Xbox stays in the iVOD biz via its Zune marketplace.”
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