According to new research from The Diffusion Group (TDG), Netflix streaming has increased 350% during the last 10 quarters, growing from two billion hours in Q4, 2011 to seven billion hours as of Q2 2014. Netflix 2014, Domestic Dominance, International Escalation, presents TDG’s latest analysis of Netflix and examines subscriber growth and hours streamed, and offers domestic forecasts for both through 2022. The report also discusses Netflix’s new frontier, international service introductions.
Total streaming among US Netflix subscribers rose from 1.8 billion hours in Q4-11 to 5.1 billion hours in Q2-14, almost tripling during this period. Total international streaming grew from 0.2 million hours in Q4-11 to 1.9 million hours in Q2-14, a ten-fold increase.
Netflix Hours Streamed Per Subscriber Per Month (Worldwide; TDG Estimates)
Monthly Hours Streamed
Source: Netflix/TDG, September 2014
Although the rate of international streaming growth has outpaced that of domestic streaming, US consumption remains responsible for the majority of total worldwide streaming hours. In Q3, 2011, domestic Netflix subscribers represented 94% of the worldwide total. In Q2, 2014 the US share of total worldwide subscribers declined to 72%, a trend expected to continue as Netflix executes its international expansion strategy.
Bill Niemeyer, TDG Senior Adviser, says “When Netflix first launched in 1998 as an innovative DVD-by-mail subscription… difficult to imagine that… would it pass HBO to become the largest premium TV/movie subscription in the US (and) would ramp up a formidable international streaming business… ”
Asked about how their streaming affects their typical viewing of an assortment of programs using their regular TV service (whether broadcast, cable, satellite, or other, Netflix users aged 13-54 said that it makes no difference to their viewing of new episodes of dramas (58%) and comedies or sitcoms (65%) on broadcast or cable TV networks. Respondents were slightly more likely to say that it has made them watch more rather than less of these types of programs.
There appears to be a net positive effect on viewing of each type of programming on broadcast or cable TV networks, notes Marketing Charts:
55% of broadband households now subscribe to an OTT service, according to new figures from Parks Associates, reports Marketing Charts. And, a recent forecast from Digital TV Research predicts that Netflix will surpass 100 million global subscribers by 2020, while a separate forecast covering 51 countries expects OTT revenues to grow from $4 billion in 2010 to $42.3 billion in 2020, with the US hanging on to its position as the leading market at the end of the forecast period with a 37% share.
For additional information, please visit TDG research here.