Netflix's Gain Is Piracy's Loss in U.K. and Europe

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Netflix is already the dominant subscription video-on-demand service in the U.S., and now it's rising in the U.K. and Europe, as well. Speaking at the recent Streaming Forum conference in London, David Sidebottom, analyst for Futuresource Consulting, showed how various models are succeeding with over-the-top delivery. Netflix is rising with original content.

"Two years ago we had the launch of Netflix. We've had other services launched like Spotify and Amazon. Not only are these large but they've evolved, as well, so the quality of the services has improved. The content on these services has improved," Sidebottom explained. "On the video side, we're almost seeing a bit of an arms race when it comes to getting hold of quality content. A lot of service providers now are looking at original productions. Clearly Netflix -- the most high-profile with 'House of Cards.'"

As more people sign on to Netflix or similarly priced services, they're less likely to illegally download content.

"So these all are now quality services. If you think about it, Netflix £6 per month or €7 to €8 monthly, is pretty good value compared to a pay TV service. These services are gaining credibility. They are reducing churn. They're becoming a part of people's everyday lives," Sidebottom said. "Most importantly, particularly in perhaps countries outside the U.K., they are providing alternatives to piracy and file-sharing. So this is where price plays a real key role."

For more on building OTT success, watch the video below and download Sidebottom's presentation.

The Building Blocks for OTT Success

This session outlines the current state of play in entertainment consumption across multiple devices and platforms using a series of mini case studies to review the countries that are driving digital entertainment in Europe, describing the role of service evolution, and the changing face of pay TV and its role in OTT.

Presenter David Sidebottom, Senior Market Analyst: Content, Futuresource Consulting

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