Netflix’s opinion of Internet television
Viewers, particularly Millennials, are increasingly viewing content online, and over-the-top streaming services such as Netflix (NFLX) are becoming increasingly popular. Netflix was asked at the company’s fiscal 3Q16 earnings call about its opinion on Internet television.
The company replied that it believed that linear television networks were on the decline and Internet television is here to stay. The company cited trends, including those of Alphabet’s (GOOG) YouTube’s ad-supported videos, Snapchat, and videos on Facebook (FB).
The company also stated that, despite approaching 100 million total streaming memberships, it believed that it still had a long way to go in comparison to Facebook and YouTube, which attract around 1 billion active members daily.
Rising trend of online television service
With the rising popularity of streaming services such as Netflix (NFLX) shows, viewers are watching more content online. According to a Digitalsmiths 2Q16 Video Trends Report, and as the chart above shows, Netflix leads the OTT market with a share of 53.7%, followed by Amazon (AMZN) with a 24% market share.
Hulu, Time Warner’s (TWX) HBO Now, and CBS All Access are smaller players in this market. However, with Hulu’s proposed online television service, the streaming market could be set for an upheaval.