1st Apr 2016
Netflix is racing ahead of its competitors, having accrued more than 1.4 million new customers in 2015 alone, according to a report by TV ratings body Barb.
Nearly a quarter of UK households now subscribe to the online streaming service, which currently has more than five million customers, the UK Television Landscape Report claims.
The study suggests Netflix has more subscribers than competitors such as Amazon’s Prime Instant Video or Sky’s Now TV, and continues to grow at a faster pace than other providers. Its results show that, while 82% of Netflix customers subscribe exclusively to the service, almost 50% of Amazon and Now TV subscribers are also signed up with another provider.
Though these figures are based on survey data and do not correlate precisely with the number of Netflix subscriptions, they do show the scale of the organisation’s reach in the UK and how it compares with similar offerings from other companies.
Indeed, on a global scale, Netflix’s customer base is even more impressive, with 75 million subscribers in approximately 200 countries. And the company looks set to attract more subscribers. This year, the company plans to spend around $5bn on original content – $2bn more than in 2015.
Speaking to the Guardian, Jonathan Broughton, a senior analyst for Television Media, claimed the service’s growing popularity with customers is partly a result of its low sign-up fees. “A low price point of £5.99 is extremely encouraging for [customers] to take up an additional pay TV on the back of what they have,” he said.
But while low price points can help kick start new businesses, a unique 'point of difference’ and an understanding of what customers want is key to sustaining growth. Investing in new services, harnessing new technology and keeping abreast of changing customer priorities will allow businesses to retain and build on their customer bases – as Netflix demonstrates.