Thread: VOD The future for linear TV channels
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Old 27-03-2016, 13:07   #730
OLD BOY
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Re: The future for linear TV channels
The latest views expressed by the CEO of Netflix Reed Hastings, which clarifies some of the budget and advertising questions that have been debated in this thread.

Interesting that he does not want a direct fight with the TV broadcasters but he fails to see that the more viewers turn to streaming services, the less they will be watching traditional channels, leading to a downward spiral in their advertising revenue.

http://www.telegraph.co.uk/technolog...rst-global-tv/

Over the last year, the company’s international audience has been the biggest driver of user growth – more than 35 pc of subscribers are currently non-US, and the percentage is going up. In 2015, it brought in $6.7bn in revenue, with a slim net profit of $122m – less than half of net profits in 2014.

Netflix’s big bet for the future of internet TV is pure storytelling – in 2016, it will reportedly spend $5bn on content, compared to HBO’s $2bn budget, launching 31 new and returning original series, two dozen original feature films and documentaries, stand-up comedy specials, and 30 kids' series.

(CEO Reed Hastings) seems unperturbed by critics’ concerns about Netflix’s rising costs, responding facetiously: “We have been profitable every quarter for 15 years. So the plan is the same for the last 15 years, grow a little bit every quarter.”

Upon being pressed further, he allows: “You improve the service, it gets more members, a bigger budget and we use that to get more content and do more R&D. That’s the virtuous cycle we have been on for the last 15 years. We are only 75m members still – relative to the global footprint of the internet that is small.”

Meanwhile, it beat its own expectations of international growth, adding 4m new users outside the US. If it can genuinely become the world’s preferred internet TV network, its subscription revenue will eventually subsidise its spending spree.

Hastings insists they will never rely on advertisements as a business model, and have no interest in doing live television like sports or news. So why bother arm-wrestling TV networks?

---------- Post added at 13:07 ---------- Previous post was at 13:06 ----------

Quote:
Originally Posted by denphone View Post
You must be on good commission extolling the values of all these streaming services old boy.
I just find the subject so interesting, old chap!
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