Netflix was prepared to launch in Japan unchallenged, until Amazon announced it would rival Netflix by making content available for Prime customers.
YouTube’s first foray into content subscription services may have challenges from license holders. Disney’s unit ESPN, has withdrawn content from YouTube.
BOTTOM LINE ~> Global OTT video subscription revenues will increase from nearly $9B in 2014 to over $19B in 2019. Currently, 57% of U.S. broadband households subscribe to an OTT video service. Among European broadband households, 57% in the U.K., 29% in Spain, and 24% in Germany subscribe to an OTT service.
BOTTOM LINE ~> As Netflix approaches saturation levels in the United States, international growth will be crucial to mid- to long-term success. Absence of popular titles led to a dismal first year in France. Current estimates for French subscribers are around 750,000. In the same amount of time, Netflix was able to gain more than double the amount of subscribers in the United Kingdom after launching.
BOTTOM LINE ~> Over 100 million people visit Alibaba sites every day. Their decision to enter the set-top box market is a clear opportunity for content owners and aggregators in North America and Europe to grab a slice of the pie in China.