Enders: “Netflix looks good but costs set to rise”

netflixA report from UK-based Enders Analysis suggests that Netflix’s “core US long form streaming subscription business, so vital to Netflix prospects of long term global as well as domestic success as competition increases, shows no sign of slowing, while guidance points to Q1 2014 as another strong quarter.”

However, Enders warns that although market research indicates a positive brand image, boosted by Netflix’s entry into original content commissions, “Netflix cannot afford to slacken in its efforts to build its subscriber base due to strong upward competitive pressures on content obligations.”

The report also argues that content delivery remains the other ‘big cost’ challenge. “There is no guarantee that the recent deal with Comcast will last, as the leading ISPs contend with conflicts of interest that arise from wishing to support the traditional model of linear TV but also to exploit the potential of long form online video.”

Posted by on Apr 4 2014. Filed under Articles, Business, Premium, VOD.

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