Netflix Hailed As The Best Video Streaming Industry By Morgan Stanley
By Staff Writer | Apr 18, 2016 07:44 AM EDT
Morgan Stanley revealed on Monday its sixth annual survey result of the video streaming industry. Netflix took the number one spot beating non-cable services and premium networks for the first time in the survey's history. The survey only measures original programming from non-cable services and premium networks and not from traditional TV networks or licensed programming which includes 2,501 adults from the US.
Netflix ambitiously spends on original content in 2016 and its executives have distinguished it as the best investment for the company moving forward. The company will be releasing this year with 600 hours of original content containing 31 original shows.
According to Business Insider, this move seems to be effective to draw and retain subscribers. Morgan Stanley surveyed almost 45% of the streaming company's subscribers seen originals as a driver of their subscriptions which increased from 34% last year.
"This comes as we estimate that in 2016 Netflix will spend more on (original programming) than HBO for the first time," the Morgan Stanley analysts wrote in the report. Netflix is expected to spend as much as $2.5 billion on content in the U.S. alone this year.
The streaming service was chosen by 29% of the respondents, an increase of 6% from last year while HBO came second with only 18% from 31% last year, as reported by Independent.
Netflix is anticipated to spend more than HBO does by quite a large margin, with an approximate of $2.5 billion scheduled for original content this year contrary to HBO's $1.8 billion which has reacted to the Netflix subscribers sudden increase, based on Tech Times report.
Netflix's exclusive programming has become a major feature in the service's perceived value that is soon to raise rates on its HD plan for its long-term subscribers with the same $10 a month as what new subscribers pay.