Netflix Streaming Nearly Doubles

Netflix released earnings yesterday and they had some interesting results. The video provider ended 2009 with over 12 million subscribers, adding over 1 million subscribers in the fourth quarter alone, and up 31% from the end of 2008. But what was perhaps the most interesting from a broadband provider perspective was this comment:

Percentage of subscribers who watched instantly more than 15 minutes of a TV episode or movie in the fourth quarter of 2009 was 48%, compared to 28% for the same period of 2008 and 41% for the third quarter of 2009.

By my rough calculations, that means nearly 6 million subscribers accessed Netflix through their broadband connections. Keep in mind that Netflix is available on XBox, Playstation 3 and the Wii this spring.  It’s also embedded in Samsung Blu-ray players, Roku and TiVo set top boxes, and has partnerships with LG and Vizio to stream directly to HDTV sets. (Note: I also saw a demo at CES where it was available on Samsung TVs).  I’m going to assume as these devices continue to sell (and Netflix enters more partnerships), we’ll only see this number increase.

So what does all of this mean?  I suppose the bright side is that it’s another service that will drive consumers to require broadband in their home.  The downside, of course, is that streaming VoD may shift how customers consume movies, or at least put some pricing pressures on existing services that make already thin margins even smaller. I’d be interested in what you think. Please comment below.

Related posts:

1. Sony, Netflix Announce Streaming Video Partnership
2. Netflix Launches Streaming-Only Video Service
3. Netflix Signs Content Deal with Disney-ABC for Early Streaming
4. Netflix Gains Market Power
5. Online Fraud Loss Doubles