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Netflix to have 130 mln subscribers at end-2020 - study

2015-09-25 10:45:00| Telecompaper Headlines

(Telecompaper) Netflix is expected to have at least 130 million subscribers worldwide by end-2020, according to new research from Ampere Analysis. Its nearest SVoD rival Amazon will have nearly 50 million video users globally at end-2020. Netflix has 63 million paying subscribers at end-Q2 2015, with a presence in more than 50 markets. At end-2020, at least 6 percent of households worldwide will subscribe to Netflix, with the company expecting to invest almost USD 5 billion on acquired and original content in 2016. Ampere expects this to increase by an additional USD 1 billion in the subsequent two years. Collectively, Ampere expects Netflix and Amazon to be spending over USD 9 billion per year on acquired and original content by 2020. Ampere's research also shows that consumers are increasingly willing to double-up on subscriptions. Across the UK, US, and Germany, almost half of Amazon Prime's video user-base subscribe to both Netflix and Amazon. This shows that it is content, not cost, that drives subscriptions priced at USD 10 per month or less. Subscribers to both services (Amazon and Netflix) also experience little content duplication as the two firms have very different approaches to content acquisition.

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