There is no denying that Netflix has truly grown as a formidable force online to reckon with. Within a span of three years, the premium TV and movie video subscription service has grown tremendously.
Latest research by The Diffusion Group (TDG) shows that Netflix streaming has soared 350% in the past 10 quarters or about three years. According to the same study, streaming on Netflix grew from just 2 billion hours on the last quarter of 2011 to about 7 billion hours in the second quarter of this year.
Growth in two markets
In the US alone, which is its home market, Netflix streaming rose from 1.8 billion hours to 5.1 billion hours in the same period. International streaming increased to 1.9 million hours from 0.2 million hours, which translates to a 10-fold rise.
Based on the same data, it could be inferred that rate of streaming growth internationally has exceeded the rate of growth in the domestic level, although the US market remains as the major market of the service.
In 2011, users in the US accounted for about 94% of all Netflix users. This year, the overall number of subscribers worldwide has already declined by up to 72%. The experts assert that there is always a possibility for this to further decline as the company implements its overseas expansion.
Netflix was launched in 1998. Back then, it was an innovative video by mail subscription service. During its initial years, no one had thought that it would be possible for it to outpace leader HBO as the biggest premium video subscription across the US.
The company rolled out its online streaming service seven years ago, or in 2007. It could be noted that it took several years more before the service generated significant volume of usage.
Now, Netflix’s popularity could never be underestimated. As more consumers get greater access to the Internet and with the advent of more devices that are used for logging online, it is expected that the service would become more popular in the coming years. It is also expected to gain more popularity outside the US.