The behemoth movie streaming service Netflix has grown substantially in the past few years, with US movie and TV addicts craving for anything new on the service.
In this quarter alone, the company added three million more subscribers, boosting the total number to over thirty-six million. To put this in perspective, Netflix currently has more subscribers than premium cable service HBO.
US bandwidth providers detail how Netflix takes up about a third of all bandwidth between the times 18:00 to midnight in America. Netflix subscribers have streamed over four billion hours of programming in this quarter alone.
Netflix, for a long time, struggled with licensing and delivering content to users. DRM and view-count was always something against them in a subscription based streaming service, however with content coming straight from Netflix, this has closed the gap a little.
The company still relies heavily on content from other cable companies and movies from different studios and we suspect for the next few years Netflix will continue to purchase a lot of licenses for content.
House of Cards, Arrested Development, Derek and Hemlock Grove are Netflix’s ticket into big profits and keeping subscribers on the service. Instead of watching a few movies, series sponging and then leaving, the users now stay and wait for the original content next series.
Interestingly, fewer than 8,000 subscribers left the service once they got the offer to watch House of Cards, although the company did not divulge how many people took the offer in the first place.
This is just the start for Netflix and just the start for streaming services providing original content. We are starting to see Amazon add content and Xbox is apparently launching the new series of Heroes.
Netflix also hopes to get a broader expansion into Europe, even though they are doing well in the UK and some other European countries.