Netflix popularity flourishes, strengthens lead in video service market

As online video viewing becomes more popular, consumers are shifting their attention to Netflix. According to a Bloomberg Businessweek report, subscribers to the subscription video service watched more than 1 billion hours of TV shows online last month.

This is a record high for the company and suggests that people are slowly changing the way they watch television, shifting from traditional cable networks to on-demand, online alternatives, the news source said.

“They are the clear leader in their space and still have growth opportunities,” Portland-based Pacific Crest Securities analyst Andy Hargreaves said, according to Bloomberg Businessweek. “We had estimated their customers watched about 850 million hours per month in June and they exceeded that. People are watching more and there are more people watching.”

A separate report by Parks Associates revealed similar findings, saying the cost of subscribing to Netflix often outweighs the benefits of using other on-demand services.

Still, the growing demand for video services is creating more competition in the market. As the battle for dominance heats up, media companies that leverage subscription billing and management platforms will be able to more easily enhance customer satisfaction and build brand loyatly to differentiate themselves from the competition.