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One of the great success stories in the movie rental business over the last decade has been by-mail and streaming renter Netflix. The company’s subscriber base has almost tripled since 2005, and stock analysis service Trefis is forecasting that  Netflix will grow from 14 million subscribers at the end of 2010 to 28 million by 2016.

Trefis cites the following reasons for its forecast of continued growth, albeit at a slightly slower rate, by Netflix over the coming years:

  • Netflix is witnessing great demand for its $8.99 a month plan, which includes renting unlimited DVDs (one at a time) and access to unlimited streaming service.  The value proposition is quite strong to many customers, encouraging them to subscribe.
  • Netflix is continuing to invest in its online movie streaming service which will position the company to attract more customers that prefer online viewership.
  • Netflix has over 100,000 movies in its DVD catalog and about 17,000 online streaming titles.  This depth of content gives Netflix an edge over its competitors.

Insiders, how do you see Netflix’s value proposition stacking up to those of its competitors, including Redbox? Will this forecast hold true, especially in the face of heightened competition in the increasingly crowded VOD business?

(via Trefis)

    3 Responses to “Forecast: Netflix to Reach 28 Million Subscribers by 2016”

    1. Member [Join Now]
      ChadCronin [chadcronin]

      I still alot of people who don’t care about online and who don’t like to wait to get a movie. They want to go pick something up on a whim. I on the other hand am more patient, but streaming is lower quality and when I tried Netflix for Blu-ray they would come cracked more than half the time. I will just wait for Redbox to carry Blu.

      • Visitor [Join Now]
        usametric [visitor]

        That’s crap, Ive received at least 7 straight blurays from netflix and not a single one has been damaged, so stop spreading falsehoods Chad!

    2. Visitor [Join Now]
      Jeremy [visitor]

      Well every one have their preferences and I think netflix users should also try out redbox, then decide which one is the better. For updates check out Redbox codes.

      Take care and see you.