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Netflix Whisper

Netflix Whisper
 

Research Question: Is Netflix successfully expanding its demographic and mobile penetration as a path to future per person subscriptions?

Companies Covered: Netflix (NFLX)

Report Available: October 11, 2013

 

Blueshift’s current research shows NFLX with growth opportunities in lower-income homes and on mobile devices, while also beginning a path toward per person subscriptions, though none are guaranteed to succeed as NFLX attempts to increase subscriptions.

 

Observations

  1. As cord cutting continues to grow, there is an increasing opportunity for NFLX to expand subscribers among lower-income demographics. A recent survey shows 30% of TV homes with an annual income less than $30,000 rely solely on over-the-air TV — up from 22% in 2010.
  2. NFLX has another growth opportunity with increases among mobile users as only 6% of Netflix subscribers access the service via cell phone. However, the delivery has significant room for improvement, as exemplified by frustrated user comments from this Web page about the Windows Phone Netflix app.
  3. NFLX started rolling out individual profiles for each account. Each account will allow up to five unique profiles and provides everyone with their own settings, recommendations, viewing history and queue. Reader comments show support for the new individual profiles, especially those with young children that want to keep control over TV viewing experiences. This could be NFLX’s first step in charging per person subscriptions.
  4. Blueshift’s Dec. 14, 2012 report found that NFLX would not lose subscriptions despite the rise of MSO’s new OTT services, and that NFLX is competing more with premium channels such as HBO and Showtime with the expected success of its original content development. Its recent deal to be an app on Virgin Mobile’s set-top TV in the UK furthers NFLX’s presence.

 

To gain insight into NFLX’s demographics and mobile penetration, Blueshift will gather data and issue a market research report from independent sources in the following areas: cable operator executives, movie and TV executives, content distribution professionals, and industry specialists.

 

To see other ideas Blueshift Research is currently working on, please click here.