Netflix is already a huge player in in the video rentals market, but its the streaming side of its business which has allowed it to grow over the last few years. And that growth is only going to speed up according to a new analytics forecast.
Netflix At The Moment
is a hugely successful company that has built on its original ambition to deliver DVDs by mail and seen off the bricks-and-mortar establishments such as Blockbuster in the process.
Its most recent earnings report, for Q3 2010, shows that Netflix is now more powerful than ever. Adding 1.9 million subscribers in three months to rack up a total of 16.9 million, and expanding its revenues, gross margin, and share price have all combined to suggest the company is on its way up to new heights.
Now, research firm Screen Digest (via PaidContent) has released a new growth forecast which shows the sky is the limit for Netflix.
Netflix In The Future
Screen Digest estimates Netflix’ revenue to hit $2.2 billion in 2010, while the company DVDs-by-mail business will account for 35 percent of the total disc-rental spend during the year.
Spending on disc rentals is down overall, dropping 4.3 percent to $6.2 billion. But Screen Digest still suggests this sector will grow next year and through to 2014. However, this is entirely due to an inability to separate Netflix’ DVD and streaming businesses, and it’s the latter which is actually on the up.
Conclusions
These statistics and forecasts suggest Netflix is a company on the verge of greatness, and it has streaming video to thank. After all, it is believed that had Netflix not introduced a streaming option its subscriber numbers would have plateaued at around the 10 million mark.
Netflix has recently expanded its operation to Canada, and with a streaming-only service to boot. A streaming-only option is also being tested in the company’s native U.S. So how long before Netflix moves further afield?
