Quote:
Originally Posted by Stuart
Where did you get that 60 million from? IF you add up the 2011 figures that comes to around 60 million, and the page says that they are adding 7 million a year, which sounds impressive until you realise that their potential market consists of the US, Canada and most of Europe. 7m is a fraction of the population of those countries.
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From the wiki page obviously wiki pages are debateable "As of mid-March 2013, Netflix had 33 million subscribers.[12] That number increased to 36.3 million subscribers (29.2 million in the U.S.) in April 2013.[13] As of September 2013, for that year's third quarter report, Netflix reported its total of global streaming subscribers at 40.4 million (31.2 million in the U.S.).[14] By the fourth quarter of 2013, Netflix reported 33.1 million U.S. subscribers.[15] By the first quarter of 2015, there were more than 60 million subscribers globally!
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Quote:
Originally Posted by Chris
"Market" and "Customers" are two entirely different things. You can't just go on the internets, google up a great big number, and then declare you've made your case. 
Netflix may well have 60 million customers worldwide, but they are spread across many and diverse markets. Within the UK market, which is what we are discussing here, they had 3 million customers as of late last year. The average size of a UK household is 2.3, which implies an absolute maximum audience for Netflix of 6.9 million at any given time, assuming there is ever a time when every member of a subscribing household is sitting down and watching Netflix at the same time. This is extremely unlikely. Consider, for example, that the nearest the UK gets to all watching the same thing at the same time is whatever is on BBC One in the late afternoon or early evening on Christmas Day, and that attracts about 12-14 million.
Of course, you might reply, that's all besides the point because the whole point of a service like Netflix is that it doesn't rely on everyone watching at once. However, the advertising of mass-market consumer brands *does* rely on that. Big brands have big campaigns which run on a scale designed to get potential consumers talking about them. That is much more difficult to achieve if you can't reach a large audience, or you can't reach a large audience all at once. A 30 second slot in the ad break in the middle of Corrie is worth £50K to £100k for good reason. |
Fair point but Netflix is still fairly young in the uk, Rome wasn't built in a day, ofcourse adverts on terrestial linear channels will be worth a hell of a lot more than potential adverts on online services such as netflix as linear tv is more widely available than fast broadband.
Something like let's say 2020 we could see that change as faster broadband becomes more widely available (no this won't be the end of linear tv ob
) the ad revenue for online services would come more closer to inline with ota broadcast services. we will see i think more in the line of product placement in shows made by companies such as netflix rather than actual commercial adverts.
Product placement can bring in a tidy sum, even BBC do it on some of it's shows.