Back in July, we discussed on this blog how there appeared to be a concerted effort emerging to tackle the growing dominance of Netflix across European markets. A few months later, we are seeing how the streaming giant is facing up to these renewed challenges, and in at least one European market, the service is only increasing its success levels over the SVOD ecosystem.
MTM, the research and strategy consultancy, recently released their bi-annual ScreenThink research tracker, and found that Netflix’s subscriber total is expected to grow by 1.1 million by the end of 2018, from just over 9 million posted at the end of Q1 of the same year. This number is dependent on the platform keeping churn down, but as we will see, that shouldn’t be too much of an issue.
While churn is something that all streaming video providers have to contend with, Netflix has the happiest customers in the UK market, with 88% saying they are satisfied with the service. This is by far the highest rating for any SVOD service in the UK.
In Germany and France, as we see services partnering with each other or with government initiatives to go head to head against Reed Hastings’ megalith, in the UK service providers as taking a slightly different approach. Services like Sky and Virgin are attempting to co-opt Netflix’s success, partnering to get it onto their platforms in order to make themselves more attractive to their own customers (and potential customers).
In this sense, the UK market is doing nothing slow Netflix’s ascent toward absolute dominance. Quite the opposite. While there is a huge amount of very healthy competition in the UK when it comes to online video services (BBC iPlayer, All4, ITV Hub, My5 and Now TV), the fact that two of the country’s biggest pay-TV services are partnering with Netflix will only serve to strengthen the streaming giant’s position at the top of the food chain. While it is a smart move on the part of the pay-TV providers, no doubt looking to stem the losses that are affecting so much of the pay-TV industry at the moment, in the long term it only brings more and more customers into Netflix’s all encompassing embrace, making regional dominance even more of a long term likelihood.Contact Airbeem