Netflix, the popular online streaming service, announced that it added slightly less than 1.7 million new subscribers during the second quarter of 2016, despite a forecast of 2.5 million new users. The growth in last year’s same period was about 3.30 million. This slowdown is due in part to its recent price increase that caused a lot of subscribers to sign off. Netflix, which literally has changed the way we watch TV, is – in fact – facing growing competition on the SVOD (Subscription Video on Demand) front from tech firms like Amazon (Prime Video) & YouTube (Red) and traditional TV networks such as Time Warner, HBO, CBS and NBC, which have added internet streaming services to their cable and broadcast offers.
Streaming video currently represents over 60% of all Internet (mobile and fixed) traffic and some analysts predict that it will grow to 85% before 2020. In the US, 70% of families watch TV shows and movies online, with 64% paying for the content. In a few years the way we watch “TV” has changed radically and it is interesting to note that the same video streaming universe is already heading for some changes of no small importance.