2015 was the year of online video streaming; from Netflix’s move into self-produced content, to online behemoth Amazon’s entry into the crowded world of online video, 2015 was all about binge watching your favorite series at home. With the European markets currently well overstocked and hugely competitive, 2016 looks set to continue that trend. But where do streaming companies such as Netflix go next when most of the EU & US market have access to an online streaming account?
Emerging markets such as Asia of course!
In September, Netflix added 25% to its CFD trading price. Jumping from $95 to $126 by announcing they were going to enter the Asian market slowly, they will start in Japan and aim for total global coverage by the end of 2016. This has now begun, with Netflix reaching Japan with great success. But how far can Netflix realistically expect to spread in a whole new continent within 1 year? Now, we look forward at the continued roll out of Netflix across the region, and see how it will fare.
It’s no surprise that for an online streaming service, you need a strong internet connection. It is for this reason therefore, that the next stage of Netflix’s masterplan is entry into in Korea, Singapore, Hong Kong and Taiwan throughout January 2016. These markets have been picked due to the higher than average internet speeds compared to other areas in the region. Korea actually has the world’s fastest average speed at 22 Mbps. It is hoped getting a foothold in these key populist places will help provide a foothold in their battle against emerging rival Hooq. Hooq’s offline streaming service is giving them a huge edge over Netflix due to poor connectivity in places such as the Philippines, whereby people are able to download a film or program whilst connected and then watch later at home.
The idea therefore, is to dominate the large population, higher connectivity areas by using the strength of their programming, both self-produced and officially licensed, and then hope the smaller territories follow suit. It is thought that once the superior service is recognised, that this may mitigate some of the connectivity downsides seen in some lesser developed East-Asian areas due to the knock on effect a quality service enables.
On the move, Greg Peters told YonHap News Agency;
“We are very excited about the opportunity more than anything else. There are great opportunities to bring contents from Korea to rest of the world, and bring global contents to consumers (here),”
As you can see, 2016 certainly is going to be another huge year for online streaming, with new markets to conquer and old markets to consolidate. The only winner will be viewers like us who will be bombarded with a year of great online video.