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clrmoney
10/16/2017 12:38:34 PM
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Kolodyuk European Success
This is interesting because Kolodyuk is something different and new because what they have to offer like as price range and maybe they will be better than Netflix for other countries. So look at the continued progress of this.
Ariella
10/16/2017 5:35:55 PM
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Re: Kolodyuk European Success
Certainly, it takes a different approach than Netflix with its focus on local content.
Ariella
10/16/2017 5:48:24 PM
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Re: Kolodyuk European Success
But you don't need to worry about Netflix's future for now. The WSJ reported today that it beat its forcasts for subscribers.
Netflix Inc. NFLX 1.60% continued to exceed its subscriber-growth estimates, both at home and abroad, as the company said it expects to spend even more on original programming next year to help lure viewers amid an increasingly competitive streaming market.
The Los Gatos, Calif., company ended its third quarter with 104 million paid streaming subscribers globally. It added 5.3 million streaming users in total, outpacing the 4.4 million it had projected.
Adi
10/17/2017 4:46:54 AM
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Re: Kolodyuk European Success
Ariella - Yes, susbcriber growth continues unabetd for Netflix. But I think very little of that came from eastern and central Europe. It's proving to be a tough market -- and if they get booted out of Russia, that's the biggest market in the region gone for them.
Ariella
10/17/2017 8:27:45 AM
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Re: Kolodyuk European Success
@Adi so long as they're content with their success and don't pin it on conquering the whole world, they can be fine. It's really difficult for any single company to succeed in every single market. Perhaps one is better off accepting that some markets just will remain beyond their reach.
Adi
10/17/2017 8:46:13 AM
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Re: Kolodyuk European Success
Ariella - very true. Netflix is already a global giant, just with its success in NA and western Europe. I'm sure there will be additional geographies where it dominates, and others where it might be more of a secondary player -- but that's still revenue. Even if it flops here and there, overall it's still highly successful.
Ariella
10/17/2017 8:58:12 AM
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Re: Kolodyuk European Success
@Adi Exactly. It's the thing I always notice about thriller plots. The villains always want to take over the whole world. That overreaching is what makes them fail in the end. World domination is generally not a realistic goal for any single entity. Businesses are better off knowing where their customer base is and giving them what they want.
afwriter
10/16/2017 11:02:04 PM
User Rank Platinum
$3 - 5!!!
I know the conversion rate is different but is it that different? Netflix is reaching $20+ here in the states and, everyone -including myself - will just deal with it because the service is still deemed worth it. I understand that a local OTT wouldn't have the library Netflix has but I feel like $3-5 is low. At that point why would you source local content and create an ad based OTT service?
Adi
10/17/2017 4:45:34 AM
User Rank Author
Re: $3 - 5!!!
That's a great point, afwriter. In fact, that is what Viu is doing in its Asian markets -- it's base tier is ad-supported (with a premium SVoD tier) because it just feels that with low willingness to pay and high piracy, it's better off with a free service.
Personally I think OTT is far more evolved in Asia than in Eastern Europe. They are still getting their head around it. But as Google/Doubleclick presented at the event, there are efforts to get more ad funded services out.
afwriter
10/17/2017 1:51:50 PM
User Rank Platinum
Re: $3 - 5!!!
There are a couple services here like that, one of which I use fairly often. It is funny that Netflix and Amazon took us away from the ad-based model, but some companies are finding their way back to it with success.
freehe
10/17/2017 9:34:00 PM
User Rank Platinum
Service
@Aditya Kishore, Great article. This really put content in other countries. into perspective compared to the United States. We complain about $50 - $60 for content. I would love to pay just $3 - $5.
freehe
10/17/2017 9:36:27 PM
User Rank Platinum
Hurdles
I am not surprised about all the hurdles U.S. companies experience trying to sell content in foreign countries. Due to cultural differences, customs, traditions and language barriers it is also impossible to provide content that will appeal to non-U.S. consumers.
freehe
10/17/2017 9:39:32 PM
User Rank Platinum
Collaborate
Evventually service providers will have to collaborate to remain competitive and ensure the market remains steady. It will help lower prices for consumers and keep the pricing in the $3 - $5 range.
freehe
10/17/2017 9:46:54 PM
User Rank Platinum
Strategy
It sounds like service providers did not do enough research on the market and regulations in Europe. What consumers want in the U.S. may not be the same in other countries. Service providers will have to develop a different set of products for consumers and will have to keep pricing low.
With Netflix leaving, I suspect additional U.S. companies impacted by regulations will also leave Europe.
srufolo1
10/18/2017 11:25:44 PM
User Rank Platinum
Divan.TV
Netflix would not do well in Eastern Europe and Russia with cultural and language complexities and given the fact that they refuse to pay the price. That and the new regulation imposing a 20% foreign ownership equity limit on OTT platforms with more than 100,000 subscribers.
Ariella
10/19/2017 1:06:22 PM
User Rank Author
Re: Divan.TV
Very interesting news on Netflix in the WSJ now about Nielsen's count of its viewership. See https://www.wsj.com/articles/nielsen-offers-broad-insight-into-netflix-ratings-1508320800 (might be behind a paywall, I'm subscribed)
Nielsen will be able to measure Netflix shows using metrics similar to traditional TV ratings, including number of viewers, age, gender and frequency of viewing, and do so without help from Netflix or studios, the company said. The company isn't yet measuring Netflix viewing on mobile devices.
Eight television networks and production studios, including A+E Networks, Disney-ABC Television Group, Lions Gate, NBCUniversal and Warner Bros., have already signed on to subscribe to the service, Nielsen said.
"What's been missing here is data that enables asset owners to understand the behavior of consumers" across subscription online video services, said Megan Clarken, president of Nielsen's media measurement division Watch. "The reason we're focusing on Netflix is they are the predominant SVOD provider in the marketplace—the SVOD that our clients have been asking us to provide transparency and measurement of for some time."
It goes on to say that Netflix denies the accuracy of Nielsen's count, claiming it way below its actual viewerinship. One way they both could be correct, though, is that Nielsen is not measuring the number of views on a smartphone or tablet.
Adi
10/20/2017 6:47:45 AM
User Rank Author
Re: Divan.TV
Ariella - Yes, I saw that as well, and actually posted something on it on Light Reading yesterday. I think Netflix is facing an uphill battle refusing to share viewership data. This puts immense pressure on them to share some of it, at least at a high level.
Ariella
10/20/2017 9:28:32 AM
User Rank Author
Re: Divan.TV
@Adi Netflix contends that it doesn't have to make the info public b/c it doesn't sell ads, but Nielsen apparently feels there is still some value in the numbers.
batye
11/3/2017 12:07:02 PM
User Rank Platinum
Re: Divan.TV
@Ariella I would say it depends how you look at the numbers and ideas... as for most streming services adds do play a big revenue part.... in they earning model... but Netflix playing by it own set of rules...
afwriter
10/20/2017 9:56:37 AM
User Rank Platinum
Re: Divan.TV
I wonder if they don't want to share because they don't want to show the public how bad some of their originals have done. I'm sure there are other reasons but you'd think they'd be all about sharing viewership data to brag about how well they're doing.
Shaunn
10/21/2017 6:42:32 PM
User Rank Platinum
Anti-Netflix
The formula for eastern European success is quite different from how Netflix operates here in the states. They'll really have to create something new to break into such a radically different market. Just the target price alone is like a brick wall for profit margins.
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