Commentary

Netflix Still Growing, How Much OTT Content Is Needed?

The growth for OTT -- in terms of new competing services -- got a bit of boost when it comes to Netflix’s subscriber results. That's because the subscription video platform missed on estimates about how much it could gain in the second quarter.

Now, the bottom line: Netflix still gained subscribers over 4 million internationally and around 700,000 in the U.S. for the second quarter.

Netflix’ stock got slammed. But a traditional U.S-based cable network would be cheering for these results. In fact, any gain for a cable network would mean breaking out the champagne.

For its part, Netflix knew that competition was coming -- from YouTube, Hulu, HBO and others. Here’s the plus: Creating content is a good business to be in right now.

Competition isn’t just from original TV shows -- but from those platforms looking to retain off-network airings of movies and TV shows. As traditional TV brands continue to ramp up efforts, they will siphon away content for Netflix.

But what will potential consumers think? What will the marketing message be?  “We have 100,000 movies and shows. Competitors only have 20,000. So sign on with us!” No, that won’t work.

That's why Netflix's current marketing results are boosted and highlighted around its specific popular and award-winning original TV shows. All this comes in anticipation that competitors will be making up ground as they look to produced more of their own exclusive content that will reside on their own OTT platforms.

Already, Disney has announced efforts to end deals in selling some high-level theatrical movie content on Netflix. It hopes to bring more of Netflix subscribers to them.

As everyone knows, this isn’t a either-or scenario. Active OTT TV consumers can have two, three or even four big premium video sites. Even then, that calculus is still changing.

So is the need for more original content -- and hopefully there is room. Traditional TV is currently where over 400 premium, critically favorable-to-many shows now exist.

Glut or opportunity? 

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