North American pay TV providers recently experienced their worst quarter ever, losing nearly a half million subscribers. But where are these subs going for video services? Recent figures point to Internet TV. Juniper Research, for example, projects that subscriber numbers to over-the-top TV services such as Netflix and Amazon Prime will increase from 92.1 million in 2014, to 332.2 million globally by 2019. Netflix alone will generate $31.6 billion by 2019, up from just under $8 billion in 2014. The recent Netflix Earnings Call provides a revealing portrait that points out challenges and opportunities that reflect the state of the industry. Continue reading Execs Discuss the Future of SVOD in Netflix Q3 Earnings Call

Following news of record quarterly earnings, Netflix told Wall Street investors that it plans to expand its video service to 200 countries in the next two years. Netflix added 2.43 million international subscribers in the fourth quarter of 2014 after expanding to 50 countries and its stock jumped more than 20 percent. As part of its ambitious expansion plans, Netflix also wants to start producing 20 original scripted series per year, which could help the company become more successful in international markets. Continue reading Netflix Plans to Add Original Series, Expand to 200 Countries

Yesterday’s fourth-quarter earnings report indicates that Netflix added 13 million subscribers in 2014, including 4.3 million during the final three months (marking the company’s strongest quarter of subscriber gains to date). Netflix earnings also grew to a quarterly high of $83.4 million. “Internet TV is growing globally and Netflix is leading the charge,” claims CEO Reed Hastings. Netflix continues to invest heavily in original content and expand internationally as part of its effort to fend off growing competition from Amazon, HBO and YouTube. Continue reading Following its Record Quarter, Netflix Eyes Global Expansion

Just one day after HBO announced its plans to launch a standalone Internet streaming service in 2015, CBS followed with news of its own subscription streaming service that will provide consumers with access to live programming in addition to thousands of current and past programs on demand. The announcements could be good news for cord-cutters who are increasingly turning to the Internet for content. The news may also have an eventual impact on how TV is offered by cable, satellite and telecoms. Continue reading CBS All Access Targets Cord-Cutters and Cord-Nevers Demo

HBO announced yesterday that it plans to launch a standalone Internet streaming service in the U.S. next year that would not require a traditional TV subscription. The move is part of the cable network’s strategy to reach out to cord cutters, and underscores its growing rivalry with Netflix. The two companies are battling for a new generation of viewers who prefer watching their TV shows and movies via Amazon, Hulu, Netflix, and YouTube rather than subscribing to cable or satellite television. Continue reading HBO to Take On Netflix with New Streaming Service in 2015

While Netflix has become the largest standalone subscription programming service in the U.S., and the leading brand among millennials, the company attracted a disappointing number of new users during the third quarter, resulting in a 26.4 percent drop in its stock value yesterday. Netflix added 980,000 customers for the quarter, down from 1.3 million for the same period last year. The disappointing results were intensified by HBO’s announcement that it plans to offer a competing service next year. Continue reading Netflix Shares Take a Hit After Disappointing Third Quarter

Yesterday we reported that Netflix is expanding into six European markets this month, the company has greenlit its first original series to be produced in France, and CEO Reed Hastings suggested they would produce something in Germany in the future. Netflix is in the news again after it signed a deal with Warner Bros. Worldwide Television Distribution for “Gotham,” the upcoming series from Fox. The agreement could mark the first SVOD deal for a broadcast series made prior to its premiere. Continue reading Netflix Acquires Rights to Upcoming “Gotham” in SVOD First

Netflix is making content announcements and pledges ahead of its push into mainland Europe this month. The service has greenlit “Marseille,” its first original series based and produced in France, which the company expects will become one of its biggest new markets. The series is scheduled to begin shooting early in 2015 and will debut on Netflix later in the year. In addition, CEO Reed Hastings told German news magazine Der Spiegel that Netflix would “certainly” produce something in Germany in the future. Continue reading Netflix Expands to European Markets, Promises New Content

Time Warner Cable signed a direct interconnection deal with Netflix, which makes it the fourth of the biggest ISPs to sign such an agreement with the video service. The deal should improve the Netflix experience for TWC broadband subscribers. Netflix signed similar deals with AT&T, Comcast and Verizon in recent months after fighting with the providers. Despite signing the paid peering agreements, Netflix continues to argue before the FCC and publicly that such arrangements violate net neutrality. Continue reading Netflix Signs Paid Peering Deal with TWC for Faster Streaming

Netflix, which recently reached 50 million streaming customers, now generates more revenue from subscriptions ($1.146 billion) than HBO. According to Netflix CEO Reed Hastings, edging past HBO’s $1.141 billion is a “minor milestone.” SNL Kagan estimates that HBO has 28.7 million U.S. subscribers. However, HBO remains much more profitable than Netflix. In related news, Time Warner Chairman Jeff Bewkes told analysts this week he is open to OTT services. Continue reading Netflix Has More Subscribers, But HBO Remains More Profitable

Netflix reported second quarter earnings higher than analysts’ estimates, and announced that original series “Orange Is the New Black” helped lift its number of subscribers past 50 million. Net income more than doubled to $71 million, while sales grew 25 percent. Netflix added 570,000 domestic streaming customers, bringing its U.S. total to 36.2 million. During the quarter, the company raised fees $1 to $2 a month for new customers of its online service to help finance original content. Continue reading Netflix Reports Strong Q2 Earnings, Unveils International Plans

Leichtman Research Group notes that 47 percent of U.S. households currently subscribe to Netflix, Hulu Plus, Amazon Prime or a combination of these services, while 49 percent have at least one Internet-connected TV (up from 24 percent four years ago). Interestingly, as paid streaming services become more accessible, consumers still prefer watching video for free. According to nScreenMedia, YouTube accounted for 48 percent of time people spent watching online video in March. Continue reading Half of U.S. Households Now Have an Internet-Connected TV

Netflix is starting to provide all of its subscribers with access to Super HD and 3D content. The company announced that it is no longer obligatory for a subscriber to have Open Connect to access higher bitrate HD streams, as well as 3D titles. Netflix may face challenges convincing ISPs to adapt Open Connect; issues related to peering and local content caching are not completely resolved. Netflix also plans to unveil Ultra HD, with four times the screen resolution of HD, in 2014. Continue reading Netflix Makes Super HD and 3D Options Available to All Users

Netflix is spending billions as television evolves from a linear delivery model to a world of competing apps and new screens. CEO Reed Hastings released an 11-page paper this week on the company’s investor relations site that outlines ambitious plans for the future. While we’ve heard some of Hastings’ points in the past, the paper offers new insights regarding the transition from traditional linear TV to a new era of Internet-delivered on-demand content. Continue reading Netflix Spends Big in Effort to Lead Internet TV Transition

Reed Hastings announced on his Facebook page yesterday that Netflix subscribers viewed 4 billion hours of video during the first quarter. Media analyst Richard Greenfield of BTIG Research suggests that subscribers are viewing an average of 87 minutes of streaming content per day via the video-on-demand service, up from 79 minutes in June 2012. “Netflix is now likely the most-watched cable network,” said Greenfield. Continue reading Netflix CEO Says 4 Billion Hours of Video Streamed in Q1