Netflix claims box-office victory over LOVEFiLM
Netflix reckons it'll have the better line-up as it battles LOVEFiLM in 2012. The streaming giant also says its UK and Ireland expansion has been its most successful launch yet
Netflix says its line-up of forthcoming titles beats out the movies that will land on LOVEFiLM's rival streaming platform in 2012.
The US video on demand giant, which launched in the UK in January says movies like 21 Jump Street, The Hobbit and The Hunger Games will give it an advantage over LOVEFiLM as time goes on.
The company estimates it has snapped up films that account for 20 per cent of the UK box office takings to date this year, whereas LOVEFiLM has tied up future content deals relating to only 6 per cent of box office takings for 2012 so far.
Netflix says it is also is relying on the UK Competitions Commission to give it a better shot at challenging Sky's dominance.
In a letter to shareholders, following the company's Q1 earnings report, it wrote: "Without details on consumer pricing or content selection, it remains unclear whether Sky’s Now TV will be a meaningful competitor. Ultimately, we believe we are well positioned to succeed in the UK and Ireland based on our content selection as well as our superior streaming technology.
"If the UK Competition Commission eventually forces Sky Movies to not control the Pay TV 1 output from all six major studios, that then may provide an opportunity for Netflix to bid earlier for major studio deals than otherwise would have been the case. It is premature to know how it will play out."
Although Netflix expects its UK and Ireland expansion to lose money for the next couple of years, it has also acquired subscribers at a much faster rate than its forays into other territories like Latin America and Canada.
Overall, in Q1 2012, the company's subscriber-based grew three million to 26 million worldwide. Content acquisitions and international expansion meant the company lost $5m in the quarter, the first quarterly loss in seven years, but it claims to be well on the way back to profitability.
Via: New York Times