Netflix Outraces HBO, But Faces Stiff Competition
Internet streaming services like Netflix, Amazon and Hulu are facing tough rivalry from the same companies they once threatened to overshadow. HBO, Apple, Sony and Dish are now offering new television streaming services, which promise to push Netflix and the likes to the corner.
Netflix, Amazon and Hulu, which introduced the concept of online streaming, now find themselves standing ground. With stiff competition, these companies are now looking for new ventures, investing in exclusive productions and revamping marketing strategies.
Kannan Venkateshwar, media analyst for Barclays, says, “In a world where HBO and CBS and all of these guys are trying to go to the Internet, it looks like all of the guys on the Internet are trying to come to the television.
“The worlds are actually converging in both directions.”
HBO is also associated with exclusive award-winning productions like “Game of Thrones” and “Boardwalk Empire.” HBO Go application is also a huge success.
Netflix, however, maintains that HBO’s willingness to enter online streaming only emphasizes how successful and revolutionary Netflix’s advent has been. Anne Marie Squeo, a Netflix spokeswoman, was quoted by The New York Times, saying, “A lot of people will subscribe to more than one service similar to the way they do with apps on their phones or magazine subscriptions.
“So there’s room for multiple Internet content providers to thrive if they’re delivering great shows and movies for a reasonable price.”
According to media research firm Nielsen, Netflix is the most sought-after video streaming service in American households, though HBO has a wider reach, catering to many international subscribers. According to Huffington Post, Netflix has more than 40 million subscribers, while HBO stands at around 28.7 million.
According to data firm SNL Kagan, an American household receives an average cable bill of $90. With an influx of the number of online streaming services, the consumer can put together services they desire and still pay less than their cable bills.
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