retail news in context, analysis with attitude

by Kevin Coupe

Enders Analysis is out with research indicating that "record growth in 2015 shows Netflix to be well on its way to achieving its goal of 60-90 million US streaming customers and a global base of 150 million by 2020."

Indeed, the analysis suggests that the streaming subscription video-on-demand (SVOD) business is largely responsible for driving the success of a company that started out renting DVDs ... but never really saw itself as a video rental company, but rather as a content provider.

"The simplicity and single-mindedness of the Netflix model is hard to beat," Enders writes, "with evidence suggesting it has extended its lead in the toughest of markets, the US. Although growing spend on content origination is putting a strain on the Netflix business, it is critical to long-term success, contributing to the distinctiveness of the Netflix offer and its complementariness with other SVOD services.”

I know it is hard for people younger than a certain age to imagine, but there was a time when streaming did not exist, when video-on-demand did not exist, and when there were fewer than a dozen channels to choose from. So much of what Netflix has helped to bring about was almost unimaginable not that long ago, and now is continues to innovate and disrupt and create a distinctive voice in the industry.

The Eye-Opener ought to be that companies that do not innovate and disrupt and create a distinctive voice - in almost every industry - have little chance of succeeding.
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