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Friday, 29 January 2010 04:07

Netflix is growing

Written by David Stellmack

Image

Streaming content on game consoles is the ticket

Netflix is growing, and the growth is due in large part to the fact that game consoles can stream content. Netflix has experienced 5% higher growth over last year, with the subscriber base growing at a rate of 31% per year. The company currently has an estimated 12 million subscribers, and the company expects that number to grow to between 15 to 16 million before the end of 2010.

The decision to offer the Netflix on gaming consoles has been a good one for the company. While the company started with just the Xbox 360 (which still has the best integration of the Netflix streaming player, which is part of the Xbox 360 dashboard), the addition of the PlayStation 3 and now the Nintendo Wii give the company an ever-larger base of potential console subscribers. Currently, the PlayStation 3 and the Nintendo Wii will require a disc to access the Netflix streaming interface, with only Sony suggesting that the Netflix technology will be integrated into the console UI at some point in the future.

While the Nintendo Wii version of Netflix will not start shipping until early spring at the soonest and only support standard definition content, its addition will open an estimated installed user base of 26 million units; the likelihood that they will capture a significant number of these users is likely, despite the feelings of some analysts who think that Wii users are not as savvy and may not be as attracted to the Netflix streaming technology as Xbox 360 and PlayStation 3 owners are.

With the exceptional growth and no signs of it slowing down, it does seem that coupled with all of the other consumer electronics devices, as well as Blu-ray players, for example, that also offer Netflix support that the company will continue to have significant growth potential. We have to think that this will translate into more and better content as the studios look to reach more consumers.

Last modified on Friday, 29 January 2010 10:58

David Stellmack

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