Internet video is the future of the internet.

As the video-on-demand business is gradually accepted by the public, Netflix said that the company will increase its investment in the "Watch Instantly" business. In 2009, Netflix's cost of sales was 1.4 billion US dollars, with more than half spent on postage and manpower. However, as the DVD mailing service peaks in 2013, Netflix will invest heavily in licensed content. By 2020, if the company can still maintain the momentum of rapid user growth, Netflix will become one of the largest global licensors of TV programs and movies at that time. Netflix said that its goal is to "provide rich, wonderful and affordable programming for all paying customers."

In addition to outlining prospects, Netflix also listed competitive threats to its video-on-demand business, including cable networks, satellite TV, and IPTV providers. These companies jointly launched the TV Everywhere project to provide video-on-demand services to users. Cable networks like HBO and Epix can directly provide high-quality program content to users; Hulu may release video-on-demand services at any time; industry giants like Apple and Amazon may also release similar services.

Netflix pointed out that other threats it faces include piracy, increased costs due to ISPs raising broadband service prices, competition from other low-cost video-on-demand services, and content providers selling content directly to users.

Despite facing many threats, Netflix believes it is still possible to stay ahead in the video-on-demand field. Ultimately, Netflix attributes its success to a very important factor: making users happy. The company wrote in the PPT: "It's simple. If paying customers are extremely satisfied with us, we will succeed."

This article is reproduced from Asia Satellite TV Portal | http://www.wxtv.org/

Original link: http://www.wxtv.org/32/20100530/724.html