Seems like everyone and their mother is trying to launch a content service over the top these days. But so far, the ever-growing number of available streaming services has brought in real profit to only a few--even Netflix is struggling to maintain decent margins--while frustrating consumers searching for the content they want to watch. Could alliances between online video providers--rather than industry consolidation--help resolve these problems?
With just under 40 million subscribers in the United States, Netflix "may be reaching the ceiling of what it can add," according to an article exploring the subscription video on demand provider's profit potential. Combined with ever-increasing prices for Hollywood content and stiff international competition, times could get pretty interesting for Netflix.
Samsung Electronics is planning to spend several tens of millions of dollars to develop short-form video content for a new mobile product, according to a report from The Information.
NEW YORK--Netflix may be an online disruptor, but it's still dependent on upstream content producers using traditional models. There's no money in transactional VOD. HBO never said it was going direct to consumers with its pure-play OTT service. And there are more eyeballs on Hulu's content than anywhere else. These are a few of the statements made by online video executives at the OTT Video Executive Summit held Tuesday here, in a panel session discussing the economics of over-the-top video.
Users of Apple's new iPhone 6 and 6 Plus are getting an early holiday present from Netflix: The subscription video on demand provider is making much of its content, including original series, available on the smartphones in 1080p resolution.
President Barack Obama issued a new statement telling service providers they need to ensure that the Internet remains free and open to any consumer.
As the FCC prepares for the next round of deliberation on potential Open Internet rules, Netflix filed another comment arguing that Internet service providers can bottleneck traffic at will, with no rules in place to stop them from doing so. Further, it pointed out that the fees it now pays to Comcast for preferred access to its last-mile network are more than what Netflix pays to get its data to the cable operator's doorstep.
While it should come of no surprise, the advent of more broadband networks is enabling more consumers to access online video streaming services like Hulu and Netflix. According to Frank N. Magid Associates, 83 percent of U.S. TV watchers stream movies and TV shows, a figure that includes consumers who only use streaming occasionally. Read more
Tier 1 Internet service provider Verizon fired back at VPN provider Golden Frog, saying in comments filed with the FCC that claims made by a Golden Frog customer in July, alleging that Verizon was throttling Netflix data crossing onto its network, were inaccurate, misleading, and downright erroneous.
Whether it is Netflix, Hulu or Amazon Prime, it's clear that consumers have a plethora of online video choices they can access via their broadband lines.