Industry competition
Netflix is quickly becoming a major competitive force in the video content provider industry. This industry includes cable television companies and content providers such as Disney and HBO, as well as Internet streaming services. For the most part, several large players dominate the industry. This results in a high level of competition between service providers for consumers viewing preference and dollar.
Competitive dynamics within the online video streaming industry, where Netflix is the leading player, are evolving and lively. Cable providers are wary of the intense rivalry that Netflix inflicts, though they have welcomed licensing fees paid by Netflix and its competitors. In fact several cable companies have gone on to describe Netflix as both friend and foe. Regardless of Netflix’s established position in the online video streaming market, healthy competitors do exist. |
HBO GO has a lucrative agreement with cable providers to deliver a library of shows on demand and through their mobile App. HBO has 114 million subscribers worldwide, spends close to one billion dollars on its original programming budget, and has a long list of series it has produced and owns the rights too.
Hulu Plus is a venture between NBC, Fox and ABC to stream these studios’ current and past seasons of Television shows. For $8 a month it offers access to an extensive library of video content with less frequent commercials than normally experienced watching television. Hulu Plus generates an average 1 billion dollars annually. Amazon has an instant video streaming service that it offers to customers who sign up for its “Amazon Prime” program. Customers of Amazon Prime are provided free two-day shipping on most Amazon purchases. Amazon has a fairly expansive library selection, appealing to a wide range of consumers. |
The above rivals primarily compete in the American market, demonstrating less of a competitive presence in Canada. Netflix’s primary competitors in The Great White North consist of CraveTV and Shomi, both of which are video streaming services that are only available to subscribers of Bell or Telus, and Shaw or Rogers respectively.