Growth5 Blog

Tuesday, March 17, 2009

Netflix On Pace to Stream More Movies Than Send Out DVDs

VentureBeat posted an article recently on Netflix video streams outpacing mailed DVDs so far in 2009.

Here are some highlights:

1. "So far this year, movie streams from Netflix are outpacing DVD shipments for the first time, according to sample data put together by the Netflix account analysis site FeedFlix. If this pace keeps up, 2009 could be the first year that movie streams outpace the service’s rentals."

2. "When Netflix’s streaming service, Watch Instantly, launched in 2007, streaming numbers were just a tiny blip compared to DVD shipments. In 2008, they drew closer, as streaming became roughly half as popular as DVDs. But in the past several months, Netflix has aggressively expanded to get the Watch Instantly service off of the web browser and onto living room devices. This started with the Roku box (Wired review here) and continued with Blu-ray players, TiVo and the Xbox 360 gaming console last year."

[2009 data below is year-to-date]

3. "When you start using Watch Instantly, and see all of the content available at your fingertips, it’s hard to stop — which the data also seems to suggest. I definitely stream more movies than I get through the mail now, and I would hardly consider myself a heavy user of the service. The trend is pretty clear that as Netflix continues to expand the service onto more devices in the living room, streaming will quickly outpace DVD rentals for anyone who has access to it.

And if Netflix is ever able to get new releases (it currently offers mostly back catalog films) onto Watch Instantly, the growth of streaming ought to be exponential."

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