If the report of a Wall Street analyst firm is to be believed, in one year, Netflix will be bigger than all major broadcasting networks including ABC, CBS, NBC and Fox.
As Variety reports, the study has several assumptions in it. Netflix is not a Nielsen-rated TV network. TV networks cover a variety of content, including live sports, which Netflix doesn’t have. The Nielsen TV ratings cover seven days of DVR and VOD viewing, along with exclusive online video views.
Netflix streamed 10 billion hours of video in 2015 Q1, the report calculated. When divided by the number of users, it amounted to 2 hours per subscriber per day. The two-hour figure was divided by 24 hours then multiplied by the number of U.S. customers. Netflix’s rating of 2.6 is comparable with ABC and NBC.
If Netflix continues to grow at 40% more than it is growing now, it will cross each of the broadcasters, as they are in a declining phase.
Netflix, on the other hand, does not care about ratings as it is not bothered about ads and it is not interested in disclosing anything except general data.
There is something that goes in favor of Netflix. As the analyst wrote, “Netflix subscribers clearly like it more than pay TV, which we see as arguing for pricing leverage, since pay TV, on average, costs over $80 per month.” The average Netflix cost is $8 per month.
Netflix is expected to spend $2 billion on U.S. content in 2015 and that would rank Netflix over HBO. Netflix will walk past Showtime Networks or Starz, non-news and non-sports channels of Fox and Disney, and more.