Movie rental king Netflix continues to rattle the saber in a very fickle market that has seen increased content distribution services compete for viewership. During a down economy and limited spending, consumers have a large selection of options and very little information to go on.
Analyst group Sandvine discovered US Netflix streaming subscribers now account for at least 20 percent of primetime TV viewership from 8 p.m. to 10 p.m. The primetime TV viewership accounts for first-run sitcoms and similar programming that demand a premium in advertising.
"Within a few days of launch in Canada, Netflix attained shocking levels of success and has no doubt caused alarm among the country’s service provider community," the report reads.
After a few days of offering the streaming service in Canada, around 10% of Netflix subscribers were utilizing the Canadian streaming service -- topping YouTube and other video sites during a one-week period beginning on Sept. 22.
Blockbuster Canada responded with a $9.99 unlimited DVD rental service aimed at competing with Netflix's streaming services.
The company's growing catalog of video content has attracted new users, but is expected to cost the company more than $1 billion. Company CEO Reed Hastings admitted Netflix has slowly migrated from its core DVD business to a costly streaming platform -- and there are still rumors of a US streaming-only service that might launch soon.
By the end of 2009, Netflix only had $115 million invested in streaming content, but Netflix reached an agreement with Epix while making other business decisions.
Netflix continues to deal with rental delay agreements with movie studios, and is working carefully in a changing market. Blu-ray adoption slowly increases as DVD movie sales slide further, but more viewers seem to be interested in on-demand streaming content instead of physical discs.
