Netflix launch in the UK at the beginning of 2012 and
we thought that they would have a tough time establishing themselves, their
brand and competing head to head with Amazon’s Love Film rival. We were wrong!
Netflix in its first seven months has acquired 1 million subscribers in the UK.
They have created a new business territory that is now worth £72 million and
growing in just 7 months! Netflix took 10 months to achieve 1 million subscribers
in Latin America and the Caribbean, and 10 months again in Canada. The catchment
and infrastructure is different in the UK and Ireland with some 67 million
consumers with good access to high-speed Internet services, whereas Canada is
smaller population 34 million and Latin America and the Caribbean have 98
million but inferior infrastructure.
Some may say so what and point to
LoveFilm’s 2 million customer base is wider and is across not just the UK, but
also Germany, Sweden, Denmark and Norway and Sky. However, Netflix plan to launch
in Norway, Denmark, Sweden and Finland by the end of the year. But the fact is
that Netflix can to the UK and gave a simple message video on demand and as
much as you can view for one price. The recent Harris Interactive ‘Screenlife’ report
(July 2012) asked smartphone and tablet users to rate the appeal of an online music
service on any connected device, with access to
practically any track available today even if you don’t own them, where
you pay a monthly subscription of around £5 – 10? They also asked the same
about watching as many films or TV programmes from a large library using any
connected device, where you pay a monthly subscription of around £5 – 10? The
response was significant
Appeal
|
Extremely
|
Very
|
Somewhat
|
Not Very
|
Not at all
|
Not sure
|
Smartphone
|
||||||
Music
|
14%
|
11%
|
24%
|
24%
|
25%
|
2%
|
Video
|
17%
|
16%
|
25%
|
17%
|
21%
|
2%
|
Tablet
|
||||||
Music
|
28%
|
17%
|
18%
|
16%
|
21%
|
1%
|
Video
|
32%
|
19%
|
19%
|
12%
|
17%
|
1%
|
Netflix claim that the top UK and
Ireland genres are comedy and drama and users’ favourite time to stream is on a
Sunday night, according to the service.
So will the same shift to an on demand
subscription based service model impact other media markets? It is clear that
the the way we all consume and pay for
media is changing radically and moving from, pay to own, to subscribe for on
demand. This is no longer about music, film, games, TV,information and books ,
but about all digital media and how we find it, access it and pay for it.
Today’s book market is tearing itself apart with discounting, ebook pricing tactical games and a lowering of consumer price perception. Will now lead to a Spotify or Netflix for books or a continuation of the devaluation of the content?
Today’s book market is tearing itself apart with discounting, ebook pricing tactical games and a lowering of consumer price perception. Will now lead to a Spotify or Netflix for books or a continuation of the devaluation of the content?
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