Netflix
In a year, Netflix’s competition shifted from Hulu to HBO to everything
Netflix recently updated its “long-term view,” the company’s refreshingly candid assessment of its place within the internet video industry. Which means, if you care about Netflix, you should go read it now. Or better yet, read BTIG analyst Rich Greenfield’s assessment of what has changed from th…
http://qz.com/124899/in-a-year-netflixs-competition-shifted-from-hulu-to-hbo-to-everything/
Netflix Checks With Pirates to Decide Which Shows to Buy
Source: http://gizmodo.com/netflix-checks-with-pirates-to-decide-which-shows-to-bu-1313460819
The hardest part of beating piracy is finding a way to compete with free. Netflix does it by making things dumb easy, that and purposefully picking up shows that are popular with pirates.
Most TV Viewers Find Themselves Gravitating to Cable Over Network Programs
source: http://www.marketingcharts.com/wp/television/most-tv-viewers-find-themselves-gravitating-to-cable-over-network-programs-36586/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink
57% of US adult TV viewers agree that the shows on cable TV are better than network TV shows, per results from a Harris Poll. The survey also finds that an equal percentage strongly (28%) or somewhat (29%) agree that they find themselves watching more and more cable and less network TV.
TV viewers are less convinced about the superiority of programs found on premium channels, though: only 4 in 10 agree that the shows on pay cable TV (such as HBO and Showtime) are better than basic cable shows (on channels such as FX and AMC).
Premium channels appear to be under fire from over-the-top (OTT) options such as Netflix, with its original programming possibly seen as an alternative to premium cable. Indeed, recent research from GfK suggests that Netflix users are watching less premium cable as a result of their subscriptions. Moreover, a study from Centris Marketing Sciences found a dip in the number of households with children subscribing to premium channels during Q2.
While Centris also saw a rise in the number of those households subscribing to OTT options, the Harris survey results indicate that only one-third of TV viewers find themselves watching more and more TV via streaming, with more than 6 in 10 disagreeing that that was the case.
Separately, the Harris Poll looks at the types of shows that are most popular with Americans. Asked the 2 types of shows they would say are their favorites, respondents pointed to comedy! /sitcoms ! (39%) and detective/crime shows (32%) first, followed by news (24%), drama (23%) and reality/competition (19%).
Holy, Netflix!
Source: http://www.businessinsider.com/holy-netflix-2013-9
Netflix’s stock just hit an all-time high of $313 a share.
This wouldn’t be so remarkable except for what happened two years ago.
Two years ago, after a remarkable multi-year run on the strength of a new video streaming business, Netflix stock blew through $300 a share for the first time.
Netflix, everyone was convinced, had discovered the Next Big Thing.
Netflix was on its way to becoming The Next HBO.
Netflix was going to disrupt and revolutionize the television business and make anyone who bet on it fabulously rich.
But then Netflix made a significant mistake.
Netflix announced that it was going to split itself into two different companies. One company would contain Netflix’s original DVDs-by-mail business. The other company would be the streaming business. Netflix was going to split into two companies, it explained, because the DVDs-by-mail business was a dying business, and the future was the streaming business.
Well, the market hated that idea.
Despite the fact that absolutely nothing at Netflix’s businesses had changed, the market destroyed Netflix’s stock price. The stock crashed by 75% in three months, to $65 a share. The company, some people said, was obviously going out of business.
Why did Netflix make this mistake?
Because Netflix is run by humans.
Extraordinarily talented, brilliant humans, but humans. And humans occasionally make mistakes.
But did the market conclude that the extraordinarily talented, brilliant humans who ran Netflix had just made a relatively rare mistake?
Nope.
The market concluded that the humans who ran Netflix were so unfathomably stupid that Netflix was obviously screwed.
That Netflix founder and CEO who had been lionized as a genius on the cover of all those magazines, for example?
!
Obvio usly an idiot.
Netflix was a terrible company, the market agreed. No price was too low for the company’s stock.
But now, a mere two years later, Netflix is up 400% from the low and setting a new all-time high.
How?
Did Netflix pull off some magic recovery?
Did Netflix introduce some revolutionary new product that no one saw coming?
Nope.
Netflix just did its thing–the same thing it was doing when the market threw up in disgust and pulverized Netflix’s stock price.
Netflix just kept investing in its streaming business.
And, just as many long-term Netflix investors had hoped, the streaming business has turned out to be a pretty good thing.
So, what’s the moral of the Netflix story?
The same moral as the story of Amazon, Facebook, Google, and many other excellent companies:
Ignore Wall Street.
Wall Street is so hyperactive and bi-polar, and so obsessed with meaningless short-term results, that Wall Street causes countless pretty good managers and companies to worry about all the wrong things.
Want to create the most possible value for shareholders?
Then start by creating the most possible value for your customers.
Put your customers first, and, over the long haul, your stock price will take care of itself.
Well done, Netflix!
70% of Streaming Video Viewers “Very Picky” About What They Watch
35% of American adults often or sometimes watch streaming video through a subscription service such as Netflix of Hulu Plus, according to new survey results from Harris Interactive. For what it’s worth (and the comparison is a curious one), the same survey question finds that 23% of adults buy magazines at a physical place of purchase (such as a newsstand or bookstore) with that regularity. Comparisons aside, the researchers examine what streamers’ viewing habits look like, and whether channel surfing is a part of their behavior.
According to the results, streamed videos have a short amount of time to make an impact. Among those who sometimes or often watch streaming video through a subscription service:
- 70% agreed that they’re very picky about what they watch through a subscription streaming service;
- About 1 in 4 only give a video a few minutes to catch their interest before deciding whether to stop or continue watching, and another one-third only go one-quarter of the way before making their decision;
- 6 in 10 agree that checking out the beginnings of several videos is “the new channel surfing;”
‘Netflix Effect’ Hits Nordic Countries
source: http://www.emarketer.com/Article/Netflix-Effect-Hits-Nordic-Countries/1010160
Internet users in the Nordic countries—Denmark, Finland, Norway and Sweden—are quickly developing a taste for online movie subscriptions and purchases. Across these four nations, visits to websites offering films and other video content for sale leapt 190% between June 2012 and June 2013, according to comScore Media Metrix.
In mid-2013, Denmark boasted the largest number of web users in the region going to retail movie sites—some 700,000, according to comScore, and nearly double the number a year earlier. But the smallest markets, Finland and Norway, demonstrated the most remarkable growth during the year, with traffic to such sites up 271% and 981%, respectively.
The arrival of Netflix seems to have given the market a major push. Its launch in October 2012 offered an estimated 10 million broadband homes in the region direct access to movies and TV shows from US, European and national broadcasters and film studios. Subscribers can also watch Netflix content on a range of other web-enabled devices, such as smart TVs, Blu-ray players, tablets and smartphones. By June 2013, Netflix reached 1.5 million internet users in the Nordics, comScore reported.
The “Netflix effect” is evident in Sweden, for example. Mediavision noted that 500,000 Swedish households had a subscription to a web TV or streaming service in March 2013, three times more than before Netflix entered the market. According to Mediavision, this rapid growth was “primarily driven by Netflix.” The “MMS Trend & Te! ma” report prepared by Mediamätning i Skandinavien estimated that 645,000 people in Sweden ages 9 to 99 had access to Netflix content in Q1 2013—making it the leading VOD service in the country.
drag2share: How Tablets Are Driving A Huge Explosion In Mobile Video
Mobile video has begun to accumulate scale, and has also turned out to be one of the few types of mobile content — along with games — that monetizes reliably and drives premium ad rates.
That’s reflected in the much higher prices that mobile publishers can command for mobile video ads, compared to standard mobile formats like banners. eMarketer estimates mobile video will account for $520 million in ad spending in the U.S. this year, or 13% of the digital video ad market.
In a recent report, BI Intelligence breaks down the mobile video ecosystem, analyzing the behavior and devices behind the growth in consumption, and examining the demographics and behavior of mobile video consumers.
We specifically detail how mobile video monetization is booming, and look at the new video ecosystem that is taki! ng shape , with tablets — rather than television — at the center.
Access The Full Report And Data By Signing Up For A Free Trial Today >>
Take look at this chart from our report:
Here are some additional key points about tablet video habits:
- Video is one of the main reasons people use tablets: Two video-related activities — playing videos and sharing them — are among the top ten favorite things to do for tablet users. For smartphone users, neither activity cracks the top-10 list.
- Tablet owners are far more likely than the average U.S. consumer: to disconnect their pay TV subscriptions: and! use alt ernative streaming and download services like Hulu, Apple TV, iTunes, Netflix, and Google TV.
- Tablet users tend to have higher conversion rates than those on smartphones. This has already been borne out in the context of search ads and e-commerce, and the touchable surfaces and larger screens suggest that tablet video ads would enjoy the same benefit.
- Among younger viewers in the U.S., millennials aged 14 to 23: tablets are nearly as popular for watching TV shows as Blu-rays or DVDs. Twenty-five percent of respondents in this age group say they watch TV shows on tablets everyday or weekly, compared to 24 percent who do so on DVD or Blu-ray,
Google Chromecast review: can you make your dumb TV a smart one for just $35?
Source: http://www.engadget.com/2013/07/29/google-chromecast-review/
More Info
Despite the best efforts of Panasonic, Samsung, Sony, LG and others, most of the televisions in people’s homes these days are not of the smart variety. However, there are hundreds of millions of regular televisions packing HDMI ports, and Google’s new Chromecast device offers a way to put some brains into those dumb TVs by giving them access to web-based content. Having a Chromecast dongle connected to your TV means you can stream videos straight from a Google Play, Netflix or YouTube app, or mirror the content in any open tab in Google’s Chrome browser using a tab casting feature.
Sure, we’ve seen devices with almost identical functionality, like Plair, but Chromecast is backed by Google, whose relationships with content providers and developers mean that the Google Cast technology powering it will soon be popping up in even more apps. Not to mention, there’s the price. At $35, it’s almost a third of the cost of Plair and also Roku 3 and Apple TV, the current most popular devices that bring internet video to your TV. Even for such a paltry outlay, is it a worthy addition to your living room? And is it really “the easiest way to enjoy online video and music on your TV” as Google’s marketing would have us believe? Read on to find out.
Filed under: Home Entertainment, HD, Mobile, Google
4 in 10 Netflix Subscribers Aged 30-44 Already Cut Pay TV
source: http://www.emarketer.com/Article/Will-Netflix-Subscribers-Keep-Their-Pay-TV-Services/1010054
Cord-cutting is typically associated with those in the youngest age bracket, and the survey found this to hold somewhat true. However, there was also a notable propensity to cut the cord among Netflix subscribers between 30 to 44 years old, with 41% having cut pay TV. Overall, this age group was more likely to subscribe to Netflix than 18- to 29-year-old respondents.
Will Netflix Subscribers Keep Their Pay TV Services
source: http://www.emarketer.com/Article/Will-Netflix-Subscribers-Keep-Their-Pay-TV-Services/1010054
One in five Netflix subscribers has canceled pay TV
Nearly three-quarters of Netflix subscribers in the US still kept their cable, satellite or telecom pay TV subscriptions, according to a June 2013 study from Cowen and Company. But another 20% reported having gotten rid of their pay TV subscription, raising questions about whether more Netflix subscribers could soon become cord-cutters.
Cord-cutting is typically associated with those in the youngest age bracket, and the survey found this to hold somewhat true. However, there was also a notable propensity to cut the cord among Netflix subscribers between 30 to 44 years old, with 41% having cut pay TV. Overall, this age group was more likely to subscribe to Netflix than 18- to 29-year-old respondents.
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