Online on-demand streaming services such as Netflix are undoubtedly growing in the market as the sensationalism of online binge-watching continues. In Netflix’s 2016 final earning report, Netflix gloat about their successful original content and their concerns about competition.
In this report, Netflix announces that they finished 2016 with 93.8 million members on the subscription based website. This is an impressive growth considering that they started 2016 with 74.76 million members.
“We are learning rapidly how best to match content with audience tastes around the world” states the Netflix report. Since 2013’s House of Cards introduced a whole new market for Netflix, a large influx of worldwide subscriptions and more demand for original content grew.
2016 introduced Marvel’s Luke Cage, a brand new season of Black Mirror, a mini-series of Gilmore Girls, The Crown and more to Netflix. As of which, many brand new drama series were available to binge-watch at will last year.
The report also acknowledges how competition is arising:
“Internet video is a global phenomenon”
“It’s becoming an internet TV world, which presents both challenges and opportunities for Netflix as we strive to earn screen time”.
Amazon’s video service has The Grand Tour as a successful original series, HBO is flirting with Internet TV via HBO GO. Netflix even notes how the BBC is using BBC iPlayer as a service so stream original content. Class, a Doctor Who spin-off for example was originally just available online.
With large online video platforms such as Youtube experimenting with creating originals on Youtube Red, perhaps Netflix do need to keep an eye on their competition in the upcoming years.
Read the full Netflix 2016 final earning report (as a PDF) here.
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