Wednesday, May 27, 2015

Why Netflix, Inc. Password Sharing Could Prove Unsustainable In The Long Run

Digital media research conducted by Parks Associates reveals that as many as 57% of US households with a broadband connection use OTT video subscription to watch content online. However, the same survey reveals that 8% of these do not pay for the service they utilize.

Netflix has clearly taken a hit with this, with the company’s investor letter for the first quarter highlighting that this quarter has seen the lowest year-over-year (YoY) subscription growth in almost two years. Netflix shares have risen more than 82% in 2015, and with a subscriber base surpassing 40 million, it is understandable that Netflix is at least reaching maturity, if not market saturation. Netflix’s investor letter already accounts for a drop in growth to a little under 5.9 million users for the second quarter.

From the article "Why Netflix, Inc. Password Sharing Could Prove Unsustainable In The Long Run" by George Zack.

Next: Apple Inc. TV Fourth Most Popular Streaming Device: Parks Associate
Previous: The Booming Online TV Industry: What’s Next?

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