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Netflix business model assessed

May 22, 2013 13.40 Europe/London By Chris Dziadul is at the Connected TV World Summit in London

Netflix FamilyGiven that Netflix makes only 3 cents for every dollar spent by customers, is its business model sustainable?

The overwhelming response from a panel entitled Connected TV strategies for pay-TV was yes, though with some qualifications.

Harry Koiter, VP business development, Seachange, was of the view that it was, though only in larger markets, while Christine Mitchell, head of video content, Vodafone Group, said it would depend on the movement of competitors, which could pose a threat to Netflix.

However, Björn Isakson, VP business development, partner, of the Telenor-owned OTT service Comoyo, was bullish about the prospects for Netflix and OTT in general.

Vadim Makmator, key account manager of Smartlabs, meanwhile said the three cents was likely to grow significantly over the next five years.

Netflix was praised by Monika Hanson, product manager connected TVs and game consoles, Viaplay, for doing a “great job in educating the market on OTT.”

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Filed Under: Newsline, OTT, Platforms Tagged With: Netflix Edited: 22 May 2013 13:44

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