According to a new study from The Diffusion Group (TDG), almost two-thirds of Netflix users that subscribe to a home broadband service are now viewing the ‘Watch Instantly’ streaming video service.
One-third of broadband-enabled Netflix subscribers view this streaming video only on their PCs, eight percent view the content exclusively on their TVs, and 24 percent use both their PCs and TVs.
"Netflix is now the archetype for over-the-top (OTT) streaming video services," said Michael Greeson, TDG founding partner and director of research, in a statement. "Not only has Netflix eclipsed its immediate competitors in terms of online DVD rental, but it has quickly become the ‘gold standard’ for new OTT streaming services."
From TDG’s latest report, "Profiling Netflix Streamers," Greeson identified several factors critical to its success:
Netflix built a sizeable base of loyal service subscribers prior to launching its streaming service.
These subscribers had already demonstrated an ability to think beyond traditional content distribution schemes.
Netflix was able to establish proof of concept by delivering streaming video to the PC before it tackled the more costly and uncertain issue of TV delivery.
Though initially dependent upon a dedicated set-top box (Roku), Netflix moved aggressively to embed its streaming solution in a wide array of traditional CE platforms, thus reducing the consumer risk associated with trying an unfamiliar and unproven delivery scheme.