Since 2013, Netflix’s stated aim has been to win “moments of truth.” That is, those points in time when someone chooses to watch Netflix, rather than do something else. More recently, the company has said its greatest competitor for attention is phenomenally popular video game Fortnite, suggesting it has little to worry about from its traditional TV and online video rivals. It’s a timely soundbite, but how far has Netflix come and how far can it go?

Ovum’s latest Digital Consumer Insights survey sheds some rare light on this fundamental question. We asked thousands of internet users to rank which…

The ongoing unbundling of pay TV by Netflix, Disney+, and other direct-to-consumer (D2C) video apps will undoubtedly be one of the defining trends of 2019. But the year will also see Apple, Amazon, Google, Roku, operators, and others seek to insert themselves between these apps and consumers in new and disruptive ways — with major implications for how TV is discovered, watched, and paid for.

Ovum estimates that $7.2bn, or 22%, of total paid OTT video revenues flowed through such “re-intermediaries” in 2018 (see Figure 1). Consumers paid for $3.9bn of video rentals, downloads, and subscriptions via app stores and…

All good things come to an end. And so it will be with Netflix’s growth spurt. At some point, the pioneering online video provider will run out of new customers willing and able to subscribe — provided it sticks to its current business model. But what if Netflix were to pursue more radical options?

It’s first worth stressing that Netflix’s model — offering ad-free, subscription-based access at largely similar prices worldwide — has plenty of distance to run. …

Rob Gallagher

Research Director | Consumer and Entertainment Services | Ovum

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