Netflix Financial Analysis

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Recommended: Netflix's market structure

Before Netflix can fully determine the market impact of its decisions on productions and expand services, it is important to observe the competition further. HBO, for example, was the first to discover the value of the original series with the programming OZ, The Wire and the Sopranos as an exclusive service through the Internet if the customer has a cable provider (Tamariz, 2013). Thus, making it easier for HBO to have more customers due to the validity of A-list stars keeping long term customers that subscribe to cable networks. The result of HBO's extensive client base Time Warner quarterly reported in 2016 that Home Box Office or HBO generated a total subscription revenue of $5,964,000,000 (Time Warner Inc. Reports Fourth-Quarter and Full-Year 2016 Results, 2016). It is apparent that HBO has a larger market share than Netflix, Amazon, and Hulu. An excellent way to figure out an estimated total market share …show more content…

As concluded before Netflix earned 5,077,307 while Amazon ended with the resulting 4,601,593 determined from the graph above and Hulu average around 1,000,000 (Video Streaming (SVoD) Worldwide Statista Market Forecast, n.d; Compare Companies, 2017). The total sum of the 2016 revenues of Netflix, Amazon, HBO and Hulu was $5,974,678,900 with Netflix garnering 8.5%, Amazon at 7.7%, HBO at 99% and Hulu 1.6% of the market share. Although 18% of unaccounted is present due to complexities of the streamlining market the percentage rates indicate that HBO has excellent control over the streamlining market making HBO one of Netflix's strongest competitors to an oligopoly market (Market Structure Microeconomics Assignment, n.d.). The oligopoly market brings competitiveness combined with services that are similar in options and price such like Netflix, Amazon, HBO and Hulu (Market

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