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Netflix Is Everywhere: Welcome To The Start Of A New Era

The move by Netflix to go global “heralds the start of the new era of online streaming and internet TV”, according to Ovum senior analyst, TV, Tony Gunnarsson.

Netflix announced at CES 2016 that it is now available in 130 new countries around the world, with the service going live during a keynote by co-founder and chief executive Reed Hastings.

Hastings described it as the “birth of a new global internet TV network”.

Gunnarsson noted that following the move Netflix is now available in more than 190 markets across the world.

“The impact of a global Netflix will be felt for a generation to come and heralds the start of the new era of online streaming and internet TV,” he commented.

“It is one of the biggest moves in home entertainment, perhaps since the launch of the DVD, and a major milestone in the evolution of video and home entertainment – #NetflixEverywhere is as bold as it gets.”

Despite this, Gunnarsson doesn’t believe we will see the end of traditional TV distribution any time soon, noting that it will take years for Netflix to build subscriber numbers in new markets comparable to its numbers in established markets.

Even in the domestic US market, the “impact of Netflix on cord-cutting has probably been overstated, especially as many pay-TV subscribers tend to also subscribe to SVOD services”, he commented.

“Let’s not forget that Netflix is not a new business,” Gunnarsson observed. “It has been around for 20 years and it will be another 20 years, perhaps longer, before the world has transitioned from traditional TV to OTT distribution.”

Ovum’s preliminary view is that Netflix will likely add up to around 10 million new subscribers in the new markets and perhaps another 10 million in existing markets this year, potentially ending the year with somewhere in the region of 85 million to 95 million subscribers globally, up from around 75 million last year.

“Ovum believes that real impact of the new 130 markets won’t be felt before 2017 or 2018 when Netflix will start to experience rapid growth in these markets,” Gunnarsson commented.

“As this happens, it is very likely that Netflix’s international business will surpass its domestic operation in terms of subscriber numbers.

“Between now and 2020, Netflix is expected to have more than doubled its current total global subscriber count and be approaching the 200 million subscribers mark.”

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